La Vida

Alejandra Velázquez Chao A01036148
QUESTION 1
1. Suggest two examples of (i) fixtures and fittings; (ii) trade creditors; that the business might have.
The Maltingsis a care home for the elderly based in Colchester, and as a business it has different assets like fixtures and fittings, and current liabilities like trade creditors. Fixtures and fittings are itemsowned by the business, in this case as a care home for more than 22 elderly people, some of the (i) fixtures and fittings for this business could be the kitchen units, and furniture like a sofa. Theseare assets that are used as fixed assets since they have a lifespan of more than one year in the company. As (ii) trade creditors the business might owe money to the suppliers that are in charge ofsupplying in food the company for the people in it and the nursing in home in case the elderly people need assistance. So, this means that this assets and liabilities are essential for the businesssince are things that must be used in order to make the business successful.

2. Complete the balance sheet above by calculating: (i) net current assets, (ii) net assets, (iii) retained profit.
Thecare home is run by a family, and operates as a private limited company which made a balance sheet in order to know the financial position of the business. In business the net current assets in thebalance sheet is known as the working capital which are the current assets minus current liabilities; in this case (i) the net current assets are $16,900. Another important data in the balance sheetare the net assets which is the value of total assets minus current liabilities minus long-term liabilities that equal to the capital and reserves on the balance sheet. In this case the net assets ofMaltings company are $731,900. In this case the company decided to retain profit that can be useful for the business in order to invest or other spending from the business, the retained profit is...