Sessegnon Ltd Income Statement for the year ended 31 December 2011
|
|
£000s
|
£000s
|
|
Sales
|
|
1,690
|
|
Cost of Sales
|
|
1,252
|
|
Gross Profit
|
|
438
|
|
Admin expenses
|
144
|
|
|
Depreciation
|
170
|
|
|
Loss on sale of machinery
|
60
|
374
|
|
Operating Profit
|
|
64
|
|
Interest payable
|
|
32
|
|
Profit Before Tax
|
|
32
|
|
Tax
|
|
10
|
|
Profit After Tax
|
|
22
|
Sessegnon Ltd Balance Sheet as at 31 December 2011
|
|
2011
|
2011
|
2010
|
2010
|
|
|
£000s
|
£000s
|
£000s
|
£000s
|
|
Non-Current Assets NBV
|
|
4500
|
|
3274
|
|
Current Assets
|
|
|
|
|
|
Inventory
|
136
|
|
148
|
|
|
Receivables
|
160
|
|
190
|
|
|
Cash at Bank
|
-
|
296
|
180
|
518
|
|
Total Assets
|
|
4796
|
|
3792
|
|
Non-Current Liabilities
|
|
|
|
|
|
Bank Loan
|
1500
|
|
640
|
|
|
Current Liabilities
|
|
|
|
|
|
Trade Payables
|
192
|
|
155
|
|
|
Taxation
|
15
|
|
60
|
|
|
Interest Payable
|
10
|
|
7
|
|
|
Bank Overdraft
|
115 332
|
|
- 222
|
|
|
Total Liabilities
|
|
1832
|
|
862
|
|
Net Assets
|
|
2964
|
|
2930
|
|
Equity
|
|
|
|
|
|
Share Capital
|
|
1000
|
|
950
|
|
Share Premium Account
|
|
30
|
|
20
|
|
Retained Earnings
|
|
1934
|
|
1960
|
|
|
|
2964
|
|
2930
|
Notes
1. Dividends were paid during the year
2. The assets disposed of had a book value of £260,000
Question 2
Prepare a cashflow statement for the year ended 31 December 2011 and describe what it tells us.
Question 3
Analyse the profitability, the liquidity and the gearing of Sessegnon Ltd based on the information above and using appropriate financial ratios. Would a new supplier be willing to give them credit?