This will be a slightly more challenging case – coming soon.
William had been working in a boatyard and Patricia in a ship’s chandlers, for several years, longing to be their own bosses.
At last their opportunity arose – a boat hire business came up for sale.
Between them they raised £300,000, formed a limited company – ‘Carefree Boating Ltd.’ – borrowed £100,000 from their bank, and bought the business.
The company has been trading for a full year now and they have asked you to prepare its financial statements for them.
Has their company done well?
Working papers have been prepared for you and all of the relevant data is summarised in a table.
Once you have completed the spread sheet, transferred the figures on to the financial statements and then calculated some ratios, you will be in the position to advise them.
Answers to all the working papers are available, of course.