Statement of financial position

Josh runs an office cleaning company. His client base includes both large and small businesses. Josh employs 6 full-time cleaners, and each one receives off-the-job training. Josh thinks that the newest cleaning equipment increases added value. He remarked: ‘Customers are pleased with the service. I am always sending text (SMS) messages to workers about extra work.’ Josh has been examining his balance sheet. He is unsure whether a bank loan is the best finance option for buying new equipment. The new equipment will cost $60 000.

May/June 2017

WFT is a primary sector business that harvests timber from trees. The Operations Manager is aware that there are many legal controls on business activity that have environmental effects. WFT employs 30 people and relies heavily on technology to process the timber. The business is constantly looking for ways to raise added value. WFT frequently requires finance. An extract from WFT’s statement of financial position appears in Table 1.1.

May/June 2024

CLW produces wood furniture, such as chairs and tables. Demand has grown rapidly during the last 3 years, so the business must expand production capacity at its factory. The factory is situated close to the city centre in a district with low unemployment. The Finance Director has prepared a business plan, which includes a balance sheet. The Finance Director is satisfied with CLW’s liquidity.

Oct/Nov 2015

HRO makes children’s toys and operates as a private limited company. Its shareholders mainly aim to raise profit. That may clash with the aims of other stakeholder groups, such as its 30 suppliers. HRO’s Managing Director understands that market research can support marketing decisions. The Finance Director is drawing up HRO’s statement of financial position. Table 3.1 gives an extract.

Oct/Nov 2024

CPW is a private sector business with a number of objectives. It sells electrical goods, including kettles and ovens, through its 36 shops in country X. CPW also provides a delivery service. To avoid import tariffs, the business buys all of its inventory from local suppliers. The Finance Director is studying CPW’s statement of financial position. An extract is given in Table 2.1. He has been asked to identify a source of finance to buy 10 new delivery vehicles.

Oct/Nov 2025