Statements of financial position

XYZ Plc - Statements of financial position (Balance Sheets) as at 31 March
2019 2020
£m £m
ASSETS
Non-current assets
Property, plant & equipment (at cost less depreciation)
Land & buildings 386 430
Fixtures & fittings 134 170
520 600
Current assets
Inventories 350 410
Trade receivables 240 280
Cash at bank 5 -
595 690
Total assets 1115 1290
EQUITY & LIABILITIES
Equity
£0.50 ordinary shares 400 400
Retained earnings 275 245
675 645
Non-current liabilities
Borrowings - 9% loan notes (secured) 250 350
Current liabilities
Trade payables 165 200
Taxation 22 4
Short-term borrowings (all bank overdraft) 3 91
190 295
Total equity & liabilities 1115 1290
Income Statements (Profit & Loss Accounts) for the year ended 31 March
2019 2020
£m £m
Revenue 2500 2750
Cost of sales (1850) (2375)
Gross profit 650 375
Operating expenses (410) (340)
Operating profit 240 35
Interest Payable (18) (20)
Profit before taxation 222 15
Taxation (55) (3)
Profit for the year 167 12
Assignment Brief Academic Year 2021-22
4
Business Finance and Economics
Notes relating to the above Statements:
i. The market value of the shares of the business at the end of the reporting period was £3.00 for 2019 and £2.00
for 2020.
ii. All sales and purchases are made on credit.
iii. At 1 April 2018, the trade receivables stood at £250 million and the trade payables at £210 million.
iv. A dividend of £40 million had been paid to the shareholders in respect of each of the years.
v. The business employed 14,000 staff at 31 March 2019 and 18,628 at 31 March 2020.
vi. The business expanded its capacity during 2020 by setting up a new warehouse and distribution centre.
vii. At 1 April 2018, the total of equity stood at £450 million and the total of equity and non-current liabilities
stood at £650 million.
5) Define management accounting and discuss how this is important for planning, control and decisionmaking within an organisation. (500 words)