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
Prepare a cashflow statement for the year ended 31 December 2011 and describe what it tells us.
Question
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?