pc task 15
TRANSCRIPT
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Task Sheet 15
Date 3/1/1989
Gordon Pepper obtains a long term bank loan of 8,000 which he will start to pay back in 3 years time.He also borrows 2000 from his brother that he must repay in 3 months! All money is put in the bank.
Assets Liabilities
Cash in bank N Bank loan N Current Assets N Current Ratio #DIV/0!
Family loan N Current Liabilities N Acid Test Ratio #DIV/0!
Total Assets 0 N Total Liabilities 0 N Working Capital 0 N
? !
Date 4/1/1989
He uses 1,000 from the cash in the bank to buy printing equipment.Assets Liabilities
Cash in bank N Bank loan N Current Assets N Current Ratio #DIV/0!
Printing equip N Family loan N Current Liabilities N Acid Test Ratio #DIV/0!
Total Assets 0 N Total Liabilities 0 N Working Capital 0 N
!
Date 5/1/1989
He collects stocks of paper and ink, worth 1,250 which he will pay for in 90 days
Assets Liabilities
Cash in bank N Bank loan N Current Assets N Current Ratio #DIV/0!
Printing equip N Family loan N Current Liabilities N Acid Test Ratio #DIV/0!
Stock N Creditors N Working Capital 0 N
Total Assets 0 N Total Liabilities 0 N
? !
Date 6/1/1989
His first job uses 750 of stock and pays 2,500, which goes into the bank. (Profit = 2,500 - 750)
Assets Liabilities
Cash in bank N Bank loan N Current Assets N Current Ratio #DIV/0!
Printing equip N Family loan N Current Liabilities N Acid Test Ratio #DIV/0!Stock N Creditors N Working Capital 0 N
Profit N
Total Assets 0 N Total Liabilities 0 N
?
Date 7/1/1989
Gordon pays his brother in full from the cash in the bank, and pays his creditors in full
Assets Liabilities
Cash in bank N Bank loan N Current Assets N
Printing equip N Family loan Y Current Liabilities Y
Stock N Creditors Y Working Capital 0 N
Profit N
Total Assets 0 N Total Liabilities 0 N
Use the information given to fill in the cells in green with the correct value. AY means you have the right answer.Cells in blue will calculate automatically. If you need a clue put your pointer on the question mark. The exclamationmark, the question mark and cells with red triangles give you help if you need it.
Use the information given to fill in the cells in green with the correct value. AY means you have the right answer.Cells in blue will calculate automatically. If you need a clue put your pointer on the question mark. The exclamationmark, the question mark and cells with red triangles give you help if you need it.
UNDERSTANDING THE BALANCE SHEETUNDERSTANDING THE BALANCE SHEET
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Date 9/1/1989
Gordon takes 600 from the profit, as wages. He buys 3000 more stock on 90 days credit
He buys a van for 4500 cash
Fixed Assets Liabilities
Printing equip N Bank loan N Current Assets N Current Ratio #DIV/0!Van N Creditors N Current Liabilities N Acid Test Ratio #DIV/0!
Current Assets Profit N Working Capital 0 N
Cash N
Stock N
Total Assets 0 N Total Liabilities 0 N
Date 10/1/1989
Gordon does a job using 400 of stock. He will be paid 4,000 in 8 weeks time
Fixed Assets Current LiabilitiesPrinting equip N Creditors N Current Assets N Current Ratio N
Van N Current Liabilities N Acid Test Ratio N
Current Assets Long term Liabilities Working Capital 0 N
Cash N Profit N
Stock N Bank loan N
Debtors N
Total Assets 0 N Total Liabilities 0 N
Date 12/1/1989He is paid in full for the above job, and spends 3750 in cash on new printing equipment
He pays off his creditors, but takes another 10000 worth of stock on credit
Fixed Assets Current Liabilities
Printing equip N Creditors N Current Assets N Current Ratio N
Van N Current Liabilities N Acid Test Ratio 0.04
Current Assets Long term Liabilities Working Capital N
Cash N Profit N
Stock N Bank loan N
Debtors Y
Total Assets 0 N Total Liabilities 0 N
Date 2/1/1990
Gordon becomes a private limited company and sells 150,000 of shares to his family
He puts the share capital into the bank
Fixed Assets Current Liabilities
Printing equip N Creditors N Current Assets N Current Ratio N
Van N Current Liabilities N Acid Test Ratio N
Current Assets Long term Liabilities Working Capital N
Cash N Profit N
Stock N Bank loan N
Debtors Y Share capital N
Total Assets 0 N Total Liabilities 0 N
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Date 3/1/1990
Gordon uses cash to buy an office for 80,000. He pays his creditors half of what he owes.
His recent work has made him profits of 4000, 1000 of which he is still owed due to late paymentOf the 3000 paid to him, half has gone into the bank and half is kept at the office
Fixed Assets Current Liabilities
Printing equip N Creditors N Current Assets N Current Ratio N
Van N Current Liabilities N Acid Test Ratio N
Premises N Working Capital N
Current Assets Long term Liabilities
Cash at firm N Profit N
Cash at bank N Bank loan N
Stock N Share capital N
Debtors N
Total Assets 0 N Total Liabilities 0 N
Use the data above to complete the Balance Sheet below (which is in a different format)
Pepper Publishing at 1st March 1990
Fixed Assets
Capital Equipment N
Vehicles N
Premises N
Total N
Current Assets
Cash at firm NCash at bank N
Stock N
Debtors N
Total N
Deduct
Current Liabilities
Creditors N
Net Current Assets N
Total Assets less Current Liabilities N
Bank Loan N
Net Assets NFinanced by:
Retained Profit N
Shareholder Funds N
Total N
This way of presenting thebalance sheet has exactlythe same information as theone for Pepper above.It balances because the NetAssets of the firm mustbelong to to the owners ofthe firm - in the form ofretained profit and the fundsof shareholders.
This way of presenting thebalance sheet has exactlythe same information as theone for Pepper above.It balances because the NetAssets of the firm mustbelong to to the owners ofthe firm - in the form ofretained profit and the fundsof shareholders.
Use the space below to explain how Pepper would use the current ratio and the acid testratio to work out the firm's liquidity position (how easily it can pay its short term debts).
Use the space below to explain how Pepper would use the current ratio and the acid testratio to work out the firm's liquidity position (how easily it can pay its short term debts).
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