Page 56 - A Level Business Studies - Financial Analysis Tasks

Task 2.e

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)

Premises 1,241,678
Plant & Equipmet 65,781

Vehicles 51,790

1,359,249

CURRENT ASSETS

Inventory (Stock) 76,891

Trade Receivables (Debtors) 67,178

Cash & Cash Equivalents (Cash & Bank) 27,648
171,717

Less CURRENT LIABILITIES
Trade Payables (Creditors) 92,167

VAT due to HRMC 24,123

Dividends 50,000 166,290
Net Current Assets 5,427

Non Current Liabilities (long-term loans) (250,000)
Net Assets (Capital Employed) 1,114,676

EQUITY (CAPITAL) [Financed By]

Share Capital 1,000,000

Reserves 114,676

Total Equity 1,114,676

Acid Test Ratio :1

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