MANAGE FINANCES

ASSESSMENT 2

TMH LTD FINANCIAL POSITION

TILL 30 JUNE 2015

ITEM 2015 2014

CURRENT ASSETS AMOUNT AMOUNT
CASH 52000 46000
ACCOUNTS RECEIVABLE 124000 134000
INVENTORY 156000 176000
TOTAL CURRENT ASSETS 332000 356000

NON CURRENT ASSETS

LAND 140000 140000
BUILDINGS 415000 290000
LESS ACCUMULATED -120000 -105000
DEPRECIATION
TOTAL NON CURRENT 435000 325000
ASSETS

TOTAL ASSETS 767000 681000

CURRENT LIABILITIES
EXPENSE PAYABLE 155000 124000
ACCOUNTS PAYABLE 167000 197000
TOTAL CURRENT 322000 321000
LIABILITIES

NON CURRENT
LIABILITIES
LONG TERM 192000 139000
BORROWINGS
TOTAL NON CURRENT 192000 139000
LIABILITIES
TOTAL LIABILITIES 514000 460000

OWNERS EQUITY
ORDINARY SHARE 50000 45000
CAPITAL
RETAINED EARNINGS 203000 176000
TOTAL OWNERS EQUITY 253000 221000

2014

TOTAL ASSETS
TOTAL LIABILITIES
TOTAL OWNERS EQUITY

TOTAL ASSETS = 221000=16%

TOTAL LIABILITIES = 460000 = 34%

TOTAL OWNERS EQUITY =681000 = 50%

 2015

TOTAL ASSETS
TOTAL LIABILITIES
TOTAL OWNERS EQUITY

TOTAL ASSETS = 253000=16%

TOTAL LIABILITIES = 51400 = 34%

TOTAL OWNERS EQUITY =767000 = 50%

THE MANAGEMENT OF TMH WANTED TO INCREASE THE PROFITS

AND THE LIABILITIES BY 20% AND 10% RESPECTIVELY IN 2015

PROFIT CALCULATIONS (2014)

RETAINED EARNINGS FROM PREVIOUS YEAR +PROFIT CURRENT

YEAR - DIVIDEND PAID

PROFIT = 176000+85000-18000

=81000
BALANCE SHEET ANALYSIS SHOWS THAT COMPANY DID NOT ITS
GOALS.

THEIR LONG TERM BORROWING HAS RISEN.

THEIR EXPENSES NEED TO BE CUT DOWN TO GET MORE

PROFIT.