Statement of financial position

Josh runs an office cleaning business and has a mix of large and small business clients. He employs 6 full-time cleaners, all of whom receive off-the-job training. Josh thinks that using the newest cleaning equipment raises added value. He said: ‘Customers are happy with the service. I am always sending text (SMS) messages to workers about additional work.’ Josh has been studying his balance sheet. He is unsure whether a bank loan is the best source of finance for buying new equipment. The new equipment will cost $60 000. Table 1: Extract from Josh’s balance sheet as at 30 April 2017 ($000): Current assets = 120; Trade receivables = 90; Cash = X; Current liabilities = Y; Net current assets = 70.

May/June 2017

VCG makes high-quality briefcases and travel bags. VCG employs 50 skilled production workers at its factory. VCG is intending to grow by constructing a second factory. Several possible locations are under consideration. The Managing Director is examining VCG’s financial statements. An extract is shown in Table 3.1. Both internal and external stakeholder groups of VCG are keen to see this information.

May/June 2022

AHG is a long-established business because it has been trading for many years. It offers garden products, such as plants and flowers. AHG follows competitive pricing. The business employs 4 managers and 30 other staff. Every one of AHG’s managers makes use of delegation. The Finance Manager is examining AHG’s statement of financial position since she wants to assess its liquidity. Table 1.1 provides an extract.

May/June 2022

HRO makes children’s toys. It is a private limited company. The chief aim of HRO’s shareholders is to raise profit. This could clash with the aims of other stakeholder groups, including its 30 suppliers. HRO’s Managing Director understands that market research can support marketing decisions. The Finance Director is compiling HRO’s statement of financial position. An extract appears in Table 3.1.

Oct/Nov 2024

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

Oct/Nov 2025