Balance Sheet for Professional Cleaning Limited for the year ended 31 May 2008

£ £ Motor vehicles F+E

Tangible fixed assets 1 25000 28000
Motor vehicles depreciation 3600 (16000) (11200)
Motor vehicles 5400 (3600) (2800) See P&L working
Fixtures and equipment
depreciation 2800 5400 14000
Fixtures and equipments 14000
Total tangible fixed assets 19400
Current assets
Cash 2 11380
Closing stock 3 78205
140500 – 5260 =
Debtors 135240 135240
Prepayment 3050

Total current assets 227875

Current liabilities
Bank loan (8% loan) (90000)
Creators (34870)
855 + (8% of 90000 Include advertising,
– loan interest) + interest, wages &
Accrued 4 (5395) wages accrued salaries
2% of ordinary
Proposed dividend 5 (1350) shares

Total (131615)
Net current assets
Total: current assets – current
liabilities 96260
Net assets
Fixed + Net current 115660

Reserve 40000
 Share Capital 6 67500
10310 –
Retained profit – 2150 =
Retained profit 8160  115660 profit for years 8160

PROFITABILITY

Capital employed = (FA + CA) – CL

= (19400 + 227875) – 131615

= 113660

ROCE = operating profit / capital employed x 100

= 48170 / 113660 x 100

= 42.38%

Gross profit ratio = gross profit / net sales x 100

= 371025 / 821235 x 100

= 45.18%

Operating profit margin = operating profit / net sales x 100

= 48170 / 821235 x 100

= 5.87%
LIQUIDITY

Current ratio = Current asset / current liability

= 227875 / 131615

= 1.73%