Prepare a cashflow statement for the year ended 31 december

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Reference no: EM13170384

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?

Reference no: EM13170384

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