Page 55 - A Level Business Studies - Financial Analysis Tasks
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Task 2.d
Look at the extract of the Statement of Financial Position and calculate the Acid Test Ratio
STATEMENT OF FINANCIAL POSITION PLC ("Balance Sheet") - Example
£ £
NON-CURRENT ASSETS (Fixed Assets)
Property 225,000
Machinery 22,000
Vehicles 45,389
292,389
CURRENT ASSETS
Inventory (Stock) 28,301
Trade Receivables (Debtors) 37,688
Cash & Cash Equivalents (Cash & Bank) 85,689
151,678
Less CURRENT LIABILITIES
Trade Payables (Creditors) 65,067
Unpaid Tax 14,000
Dividends 35,000 114,067
Net Current Assets 37,611
Non Current Liabilities (long-term loans) (90,000)
Net Assets (Capital Employed) 240,000
EQUITY (CAPITAL) [Financed By]
Share Capital 165,000
Reserves 75,000
Total Equity 240,000
Acid Test Ratio :1
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