Hello lovely teacher,

Please make me into an A5 booklet

Obvs you don’t need to print this page.
:)
STATEMENT OF
FINANCIAL
POSITION

NAME:
1. Replace each of the letters a – f with the correct figures:

£m £m
FIXED ASSETS
Buildings 62 62
CURRENT ASSETS
Stock 20
Debtors
Cash 9 44
CURRENT LIABILITIES
Creditors 35
Overdraft 5
NET CURRENT ASSETS
NET ASSETS (FA + CA – CL)
LONG TERM LIABILITIES
Bank loan 4
CAPITAL and RESERVES
Shares issued 26
Retained profit

A Statement of Financial Position used to be called a Balance Sheet, because two of the
figures need to be identical. Which two letters in the table at the top of the page represent
the two figures that need to be identical?

and
2. Financial Statements
Financial statements show how a business organisation is performing (or, in most cases,
have performed over the past year). These documents are reviews and are used by
people (stakeholders) who have an interest in how the business is performing.

People with an interest in a company’s Financial Statements

STAKEHOLDERS WITH
AN INTEREST IN
FINANCIAL
STATEMENTS

Select three of the groups of people with an interest in the organisation, who you have
identified in the diagram above, and give a reason that each one might have in looking at
their financial statements:
GROUP REASON
1.

2.

3.
3. Statement of Financial Position Puzzle – mystery bank loan
Company A owns a £5000 factory on land worth £4000. In the factory, there are machines
worth £1400 and stock worth £600. Company C owes £600 to suppliers and is owed £300
by customers. The company has £300 cash in the bank. The company was set up with
Share Capital of £8000, a bank loan and they have kept £1000 profit from previous years.
How much is the bank loan?

£ £
FIXED ASSETS

Land 4,000.00

Factory 5,000.00

Machines 1,400.00 10,400.00

CURRENT ASSETS

Stock 600.00

Debtors 300.00

Cash 300.00 1,200

CURRENT LIABILITIES

Creditors 600.00 600.00

NET CURRENT ASSETS 600.00

NET ASSETS EMPLOYED 11,000.00

FINANCED BY: -

Share Capital 8,000.00

Retained Profit 1,000.00

Bank Loan 2,000.00

CAPITAL EMPLOYED 11,000.00

4. Statement of Financial Position Puzzle – missing invoices
Company B owns a £2000 factory on land worth £3000. In the factory, there are machines
worth £1000 and stock worth £500. Company B owes £300 to suppliers. It has £200 in the
bank. The company was set up with Share Capital of £5000, a bank loan of £1000 and has
kept £600 profit from previous years.
Company B is owed money by customers – but how much?

£ £
FIXED ASSETS

Land 3,000.00

Factory 2,000.00

Machines 1,000.00 6,000.00

CURRENT ASSETS

Stock 500.00

Debtors 200.00

Cash 200.00 900.00

CURRENT LIABILITIES

Creditors 300.00 300.00

NET CURRENT ASSETS 600.00

NET ASSETS EMPLOYED 6,600.00

FINANCED BY: -

Share Capital 5,000.00

Retained Profit 600.00

Bank Loan 1,000.00

CAPITAL EMPLOYED 6,600.00

5. Statement of Financial Position Puzzle – mystery cash
Company C owns a £600K factory on land worth £1000K. In the factory, there are machines
worth £300K and stock worth £300K. Company A owes £400K to suppliers and is owed
£100K by customers. The company was set up with Share Capital of £1000K, a bank loan of
£500K and has kept £500K profit from previous years.
The company has some cash in the bank – but how much?
£K £K
FIXED ASSETS

Land 1,000.00

Factory 600.00

Machines 300.00 1,900.00

CURRENT ASSETS

Stock 300.00

Debtors 100.00

Cash 100.00 500.00

CURRENT LIABILITIES

Creditors 400.00 400.00

NET CURRENT ASSETS 100.00

NET ASSETS EMPLOYED 2,000.00

FINANCED BY: -

Share Capital 1,000.00

Retained Profit 500.00

Bank Loan 500.00

CAPITAL EMPLOYED 2,000.00

6. Construct a statement of financial position for Isabel, who owns a burger van
and fast food restaurant in Islington. Isabel gives you the following information:
a) The shop is valued at £200,000
b) Her van is worth £5,000
c) She currently has £8,000 worth of stock
d) She has £25,000 in the bank
e) Isabel owes £30,000 to suppliers
f) Isabel took out a large bank loan to set up her enterprise. There is still £190,000 outstanding on
the loan.
g) When Isabel started her business, she invested £10,000 of her own money into the business.
h) Isabel made a net profit of £8,000, which has been re-invested into the enterprise.

£K £K
FIXED ASSETS

Shop 200,000.00

Van 5,000.00 205,000.00

CURRENT ASSETS

Stock 8,000.00

Cash in bank 25,000.00 33,000.00

CURRENT LIABILITIES

Creditors (trade payables) 30,000.00 30,000.00

NET CURRENT ASSETS 3,000.00

NET ASSETS EMPLOYED 208,000.00

FINANCED BY: -

Share Capital 10,000.00

Retained (Net) Profit 8,000.00

Bank Loan 190,00.00

CAPITAL EMPLOYED 208,000.00

7. Complete the following statements about a statement of financial position
below by filling in the gaps using one of the following words or phrases.

/ retained profit / used / debtors / fixed assets /

/ source / creditors / share capital / inventory / stock /
/ total current assets / cash in the bank / performance /
/ review / trade payables / trade receivables /

• The most liquid current asset is ...................................................................................................................................................

because a business is able to use it instantly.
• The name for all the people to whom a business owes money is ............................................

................................................................ and these people are also known as ..................................................................

• People (or other businesses) who owe an enterprise money are called .......................

......................................................................... and these people are also known as .........................................................

• The total amount of money which a business has in stock, as cash in the bank
and owed by debtors is called .......................................................................................................................................................
• Materials bought for production and finished goods in the warehouse are
called ......................................................................., but these are also known as ..............................................................
• Profit which is kept and re-invested back into the business to help it grow is
• called .................................................................................................................
• Money invested into an enterprise by shareholders (including the
entrepreneur themselves) is called .......................................................................................................................................
• An enterprise’s vehicles, buildings and equipment are called .....................................................
................................................................................. .
• A statement of financial position is a .......................................................... tool. The purpose of
a statement of financial position is to look back and judge the

.......................................................................... of the enterprise by analysing the ................................................................

of money invested in the business and how it has been ............................................................... to
operate the business.