UESTION 1 Wardour Street Ltd is a dealer in marquees which a

UESTION 1 Wardour Street Ltd is a dealer in marquees, which are sold to retailers. The Statement of Financial Position for 2014 is as follows: Statement of financial position as at December 31, 2014 2014 ASSETS Non-current assets Property, Current assets Inventories Trade receivables Prepaid rent Cash plant and equipment 687,000 236,000 146,000 10,000 4,000 396,000 Total assets EQUITY AND LIABILITIES Equity Ordinary share capital (£1, fully paid) Share premium Retained earnings 300,000 372,000 295,000 67,000 Current liabilities Trade payables Accrued wages 106,000 10,000 116,000 1,083,000 Total equity and liabilities Property, plant and equipment have an original cost of £913,000 and associated accumulated depreciation of £226,000.

Solution

Question b

The statement is true

Since the financial positions gives various analysis of data like valaution of Goodwill,reparation of Cash flow statement,Ratio Analysis can be performed

Wardour Street Ltd
Income Statement for the period 2017
Particulars	Amount
Sales	1300000
Less Expenses
Depreciation	90000
Cost of Sales	810000
Wages	122000
Rent	40000
Changes in Inventory	40000
	1102000
Net Income	198000