Faculty of Business and Law

Department of Accounting and Finance

ACADEMIC YEAR 2017/18

ASSESSMENT BRIEF

Module Code: UMACTA-30-M

Module Title: Fundamentals of Financial Management
Submission Deadline: Group Presentation: 28th November or 30th November schedule
will be released in due course
Individual Report: 9th January
Assessment Component Group Presentation: 20% of module mark
Individual Report: 20% of module mark
Assessment Weighting: Combined elements account for 40% of total module mark

Assessment Instructions

Your Role
You are Joe (or Joanna) Healy, a recent graduate appointment as assistant to Fiona Collins, the
Director of Capital Investments for Wheyland Logistics Ltd (WLL). Your six month probationary
period is almost up and you are keen to use this opportunity to make a good impression and
secure yourself long term employment.

Groups
The business report and presentation will be completed in groups. These groups will be randomly
assigned, but each group will consist of students from both MSc Accounting and Financial
Management and MSc Finance. The list of groups will be made available on Blackboard.

The Case Study

The documents for this case study can be found attached to this brief. It is recommended that you
read them now.

Finally
This assignment provides a model of decision making in the real world. We hope you enjoy the
challenge.

Marking Criteria

Learning outcomes tested by the presentation

 Compare and contrast costs in investment appraisal.
 Undertake discounted cash flow calculations taking inflation, tax and capital allowances into
account where appropriate.
 Identify and apply techniques to deal with investment decisions and discriminate between
relevant and irrelevant information for decision-making purposes.
 Apply appropriate knowledge, analytical techniques and concepts to problems and issues
arising from familiar and unfamiliar situations.
 Extract and critically analyse data from different sources.
 Identify and discuss financial considerations arising from sensitivity analysis.

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 Think critically; examine problems and issues from a number of perspectives, challenging
viewpoints, ideas and concepts, and present good arguments.
 Present information in a coherent presentation to professional standards of organisation,
clarity and logical coherence.
 Discuss and defend ideas, concepts and views effectively through verbal communication.
 Use appropriate IT packages to aid efficient searching, communicating and presentation of
information (general IT skills include use of standard word processing packages, internet and
spreadsheets).

Learning outcomes tested by the individual report

 Demonstrate an appreciation of the impact of non-financial factors in investment appraisal.
 The ability to critically analyse the suitability of various financing options for funding a capital
investment.
 The ability to adapt academic theories for use in a simulated real world example.
 Apply appropriate knowledge, analytical techniques and concepts to problems and issues
arising from familiar and unfamiliar situations.
 Extract and critically analyse data from different sources.
 Identify and discuss financial and non-financial considerations in investment appraisal.
 Think critically; examine problems and issues from a number of perspectives, challenging
viewpoints, ideas and concepts, and present good arguments.
 Present written information in a report format to professional standards of organisation, clarity
and logical coherence.
 Discuss and defend ideas, concepts and views effectively through written communication.
 Use appropriate IT packages to aid efficient searching, communicating and presentation of
information (general IT skills include use of standard word processing packages, internet and
spreadsheets).
 A student’s ability to identify what they learned and how they develop whilst completing a
project.
 The ability to critically reflect upon personal experiences, identifying key learning moments
where their learning developed.
 Critically discussing key learning moments, to explore the causes behind these moments. Why
did I change? What were the causes? Was this a beneficial change? Do I like this change?
 To develop a critical outlook to propose reasonable actions to be implemented in future
projects.
 To present reflections in a professional written format.

Referencing:

Please ensure you adhere to the principles of good academic practice and ensure you use the UWE Harvard
system to reference your work. Failure to properly reference your work to original source material can be
grounds for the assessment offence of plagiarism and may result in failure of the assessment or have more
serious implications.

For further guidance on correct referencing go to:

[Link]

Details of what constitutes plagiarism and how to avoid it can be found here:
[Link]

For general guidance on how to avoid assessment offences see:

[Link]

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Instructions for submission

You must submit your assignment before the stated deadline by electronic submission through Blackboard.
Notification that the electronic submission portal is open for your assignment is displayed (usually two weeks
before the submission date) in the Coursework tab in myUWE, the Coursework tab in Blackboard and via an
announcement in the Blackboard course.

Please ensure you allow sufficient time to upload your script, noting that the system becomes busier and
slower as the deadline approaches. Only your final upload will be counted. Ensure all your information is
submitted at one attempt to avoid ‘overwriting’ your intended submission. Always check and retain your
receipts.

Late submission in the 24 hours following the deadline will be accepted but the assignment mark will be
capped at 50%. Submissions after 24 hours will not be accepted. For full guidance on online submission
through Blackboard, see:

[Link]

Submissions of coursework by any other method (including a paper copy, on disc, by email or by fax) are NOT
permissible for this module unless specifically agreed in advance of the submission date.

Before submitting your work, please ensure the following:

 That you have proof read you work thoroughly to ensure your work is presented appropriately
 That you have addressed all the required elements of the assessment
 That you have referenced in accordance with the guidance provided
 That you have addressed each of the marking criterion
 That the submission is in the correct format

Feedback
Students will normally receive marks and feedback on their submission within 20 working days of the
submission deadline (not including any public holidays or university closure days). Any delay in returning
students’ work will be communicated by the module leader via Blackboard.
Please note feedback can take many forms and can be summative (provided for work completed) or formative
(provided for on-going work or activities). Feedback on this module is not limited to the written comments
you will receive on individual written assessment submissions.
For further guidance on feedback, please refer to the module handbook.

Further Guidance

Guidance on study skills: [Link]

Support from the FBL Academic Success Centre (2B076):

[Link]

Guidance on UWE assessment regulations and terminology:

[Link]

Guidance on using the library: [Link]

Extenuating Circumstances

If you are experiencing difficulties in completing a piece of assessment on time due to unexpected
circumstances (for example illness, accident, bereavement), you should seek advice from a Student Support
Adviser at the earliest opportunity.
Please note the module leader cannot grant extenuating circumstances or extensions.

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Appointments with a student adviser can be made via an Information Point or online at:
[Link]

The Student Support Adviser will advise as to whether you should submit an application for ‘Extenuating
Circumstances (ECs)’, how to do so and what evidence is required to support the application.

Further details on ECs can be found here:

[Link]

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Group Presentation
The Financial Director for Wheyland Logistics Ltd, Vinoj Ragan, has requested to be briefed on the
impact that the capital investment proposal will have on the finances of WLL.

The presentation needs to address the following issues:

 Conduct an investment appraisal of the proposed capital investment

 Provide a clear recommendation on which investment should be made
 The factors on which the success of the project will most highly depend should also be
noted.

Required
You have been tasked with preparing and delivering a 20 minute presentation on the proposed
capital investment. This presentation should include the results of the various investment appraisal
techniques. A clear recommendation should be presented for the capital investment, in light of the
limitations within each appraisal method. A sensitivity analysis should be conducted so that the most
sensitive factors can be presented.

Any assumptions made during your calculations will need to be clearly communicated.

The attached forecast financial statements for year ending 31st March 2018, which have been
prepared without accounting for either potential course of action.

Learning outcomes tested by the presentation

 Compare and contrast costs in investment appraisal.

 Undertake discounted cash flow calculations taking inflation, tax and capital allowances into
account where appropriate.

 Identify and apply techniques to deal with investment decisions and discriminate between
relevant and irrelevant information for decision-making purposes.

 Apply appropriate knowledge, analytical techniques and concepts to problems and issues arising
from familiar and unfamiliar situations.

 Extract and critically analyse data from different sources.

 Identify and discuss financial considerations arising from sensitivity analysis.

 Think critically; examine problems and issues from a number of perspectives, challenging
viewpoints, ideas and concepts, and present good arguments.

 Present information in a coherent presentation to professional standards of organisation, clarity

and logical coherence.

 Discuss and defend ideas, concepts and views effectively through verbal communication.

 Use appropriate IT packages to aid efficient searching, communicating and presentation of

information (general IT skills include use of standard word processing packages, internet and
spreadsheets).

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Presentations
The presentations will take place on the 28th November and 30th November 2017, the presentation
schedule will be released in due course. As usual, full attendance will be expected on both days,
even if your group is not presenting.

A portion of your mark will come from peer assessment, you will be assessing your peers’
presentations.

You will need to present your findings professionally and clearly. A substantial portion of marks will
be awarded for your presentation skills.

Your presentation will be timed and you will be stopped after 20 minutes if you have not completed
your presentation.

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Individual Report
You have been tasked by Fiona to produce a business report on the proposed capital investment
project for use by the Board of Directors in their upcoming meeting. The report should contain the
following:

 A brief summary of the investment recommendation

 A discussion of relevant non-financial considerations that will impact on the capital
investment
 A discussion of financial alternatives open to WLL and their suitability for this capital
investment.
 A discussion of the gap between the theory and practice of capital budgeting

Whilst working for Wheyland Logistics Ltd you have been completing your professional
accreditation. As part of your continuing professional development (CPD) process you are required
to keep a reflective workbook on the tasks you complete, and following completion of the tasks, a
reflective report.

Required
For the business report:

A brief summary highlighting the investment recommendation from your presentation, this is to
provide context for the rest of the business report, we are not expecting and will not award marks
for an extensive discussion on the quantitative investment appraisal techniques, this was assessed in
your presentation.

A discussion on relevant non-financial considerations, here you will need to identify and discuss
various non-financial considerations that WLL should also consider before making the final capital
investment decision, you will need to determine the potential impact of each factor on the success
of the investment and provide a recommendation on how WLL could reduce the impact of my
negative factors.

A discussion of financing alternatives needs to consider options that would be viable for use by WLL,
this will need to include considerations of the impact each option have on WLL over the short and
long terms.

A brief discussion that highlights the gap between the theory and practice of capital budgeting, two
papers have been uploaded onto blackboard under the assignments tab, on which, to base your
discussions.

For the individual reflections:

Utilising a reflective framework, prepare and submit a reflective report based upon your reflections
whilst completing this assignment. In this report you should reflect upon your own personal critical
skills development, as well as development of technical knowledge.

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Learning outcomes tested by the group report
 Demonstrate an appreciation of the impact of non-financial factors in investment appraisal.

 The ability to critically analyse the suitability of various financing options for funding a capital
investment.

 The ability to adapt academic theories for use in a simulated real world example.

 Apply appropriate knowledge, analytical techniques and concepts to problems and issues arising
from familiar and unfamiliar situations.

 Extract and critically analyse data from different sources.

 Identify and discuss financial and non-financial considerations in investment appraisal.

 Think critically; examine problems and issues from a number of perspectives, challenging
viewpoints, ideas and concepts, and present good arguments.

 Present written information in a report format to professional standards of organisation, clarity

and logical coherence.

 Discuss and defend ideas, concepts and views effectively through written communication.

 Use appropriate IT packages to aid efficient searching, communicating and presentation of

information (general IT skills include use of standard word processing packages, internet and
spreadsheets).

Learning outcomes tested by the reflective report

 A student’s ability to identify what they learned, and how they develop whilst completing a
project.
 The ability to critically reflect upon personal experiences, identifying key learning moments
where their learning developed, or did not develop.
 Critically discussing key learning moments, to explore the causes behind these moments.
 To develop a critical outlook to propose reasonable actions to be implemented in future
projects.
 To present reflections in a professional written format.

Submission
You should submit the completed report no later than 2pm, 9th January, electronically via
Blackboard.

Please ensure that you submit all supporting files in a single submission, Blackboard only allows
marking of files included in final submission.

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You are required to produce the report individually, working on this report with other students is
potentially an assessment offence.

One report per group must be submitted by the due date, the entire group will receive the same
mark for this element, unless they apply in writing for differential marks prior to the submission
date.

The report has a maximum word count of 3,000 words. This figure is for the main body of the report
and does not include tables, appendices and executive summary. Inappropriate or excessive use of
tables will be penalised.

Staff Contact
You can consult staff up to 4th December 2017. Help given will be limited to exploring the possible
interpretations of the case study and correcting any errors found in the base data.

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Wheyland Logistics Ltd
Case Study Documents

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Background
Wheyland Logistics Ltd: Company Background
Wheyland Logistics Ltd (WLL) is a UK based privately owned company with revenue of £32 million
per annum, and 350 employees. The company was founded by Edward Wheyland in 1982, who ran
the company until he retired in 2011 when his son, Simon Wheyland, became CEO. Edward
Wheyland retains 60% control of WLL and Simon Wheyland owns the remaining 40% of shares.

WLL is well established as a logistics company within the UK, currently operating a fleet of 300
lorries. Despite the national inflation rate being four per cent per annum over the last few year
(which is expected to continue), a general downturn in the economic environment has meant that
WLL has experienced a revenue reduction of about four per cent per annum.

The main activity of WLL is providing logistics services for a large number of small and medium
manufacturing companies, some of whom have been clients of WLL for over thirty years. Since
Simon Wheyland became CEO he has pursued contracts from larger companies, with the noticeable
success of, during 2010, securing a contact with major supermarket that now accounts for 35% of
WLL’s annual revenue.

The current fleet of lorries has been procured over the last twenty years, and traditionally WLL have
always kept up with the latest advances in lorry technology. This has fed into their corporate image
of being innovative and technologically advanced, this is believed to have been a major factor in
securing many of the current contracts.

WLL’s Capital Investment Policy

The capital investment into their fleet is of central importance to the operations of WLL. The
company has over a number of years developed a detailed system by which capital investments are
considered. The later summary in Excerpt from the Capital Investment Manual, highlights the formal
process for capital investment decision making within WLL.

Current Capital Investment Decision: Purchase of 48 replacement lorries.

The Fleet Manager, Martin Wolcott, has submitted an application, CI/3 form, to replace the 48
oldest lorries in the fleet with 48 brand new state of the art lorries. The maintenance bill of this
portion of the fleet has risen considerably over the last 4 years, with these lorries having an average
age of over 15 years and an average lifetime mileage of 1,728,000 miles. These lorries have also
been experiencing a greater occurrence of breakdowns which has been delaying deliveries and
damaging the image of WLL.

The Workshop Manager has indicated that the existing 48 lorries will require significant maintenance
during January to ensure that they are road legal for beyond the end of March 2018. With this
maintenance, their reliability will remain unchanged and would still require replacing in three years’
time, the end of March 2021.

The Fleet Manager has recommended that the 48 lorries be replaced with the new Superio lorry,
designed and manufactured by a leading German automobile company. The Superio is considerably
more advanced than the current fleet, with its’ expected reliability and fuel consumption
improvements highly noted.

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The new lorries cost £135,000 each, which is considerably higher than the original cost of the
existing lorries. The following details have been included in the CI/3 form:

 Description: Purchase of 48 Superio lorries to replace 48 existing lorries that require

significant maintenance.
 Cost projections: Purchase price = £135,000 per unit, Annual maintenance cost = £10,000.
Annual fuel cost = £36,000. Based on completing 274 jobs a year.
 Projected timescale: Provided the order is placed before 31st January 2018, the lorries will
be delivered for 1st April 2018. With the purchase price payable 31st March 2018, the last
day of WLL’s tax year.

Interested Parties.
The Director of Capital Investments is currently concerned that, due to the significant size of this
investment, it is carefully considered and that all relevant information is utilised in the decision
making process. A meeting was called involving various interested parties, the following people were
present:

Fiona Collins, Director of Capital Investments. Fiona joined WLL in 2016, and is still
familiarising herself with some of the technical aspects of the business, having previously worked for
a manufacturing company. She has a degree in finance and is generally considered competent; she is
at times viewed as overambitious and is a strong supporter of Simon Wheyland’s long term plan to
attract larger contracts. Some long standing members of WLL doubt her decision making ability due
to her lack of experience in the industry.

Vinoj Ragan, Financial Director. Vinoj joined WLL over twenty years ago as an Accounts
Assistant, in 2007 he became the Financial Director. He is well respected within the company and
remains close friends with Edward Wheyland since his retirement. Since the financial crisis, where
WLL’s credit was seriously restricted, Vinoj has become much more prudent and risk averse, this has
placed him at odds with Simon Wheyland on numerous occasions.

Martin Wolcott, Fleet Manager. Martin was one of the first drivers employed by WLL when the
company began in 1984. He is well respected amongst the drivers, having worked with and
employed many of them. Despite being based in the head office since becoming Fleet Manager in
2009, he is more often found working from one of the companies depots. He is viewed as fiercely
loyal to his drivers, and has an uncompromising and confrontational manner.

Simon Wheyland, Chief Executive Officer. Since becoming CEO in 2011, Simon has pursued an
aggressive policy of targeting contracts from larger companies. Having spent his life involved with
the business he is generally liked within the company. However his focus on attracting customers
has caused some areas of the business to be neglected and not to have received adequate board
attention.

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The meeting.
The meeting was held by Fiona, the following are excerpts from the discussions and minutes of the
meeting.

FC: We have received a CI/3 form from Martin concerning the purchase of 48 replacement lorries.
We’re in the process of calculating the NPV of the project. In the past we have always demanded
that a positive NPV at our required rate of return, 25%. We need to ensure that we know all of the
potential financial benefits that these new lorries can give us. Else we can just let the old lorries run
out the rest of their useful lives and renew them in a few years’ time.

SW: I agree that we need to look very closely into an investment of this scale, Martin what do you
think would happen if we stay with the old lorries?

MW: The old lorries have done well but they need significant maintenance to make sure they remain
road legal past March. If we spend the £6,700 a unit we can keep them road legal until they go out
of commission in 3 years’ time, and they will still need their standard maintenance each year of
£6,000.

SW: How much is it costing us to run these old lorries?

MW: Each lorry is costing about £74,000 a year on fuel, plus they’re breaking down more. I would
predict that there’s about a 50% chance that each one will breakdown in the next 12 months, when
they do breakdown it tends to cost us about £5,000 in parts as well as losing about 3 days of
productive work. Once they are fixed, there’s still a 50% chance they’ll breakdown again in the
following 12 months. If we scrap them in March without the emergency repairs we should still get
£500 a unit.

SW: How do the new Superio lorry perform?

MW: Well they are considerably more fuel efficient than our current lorries, we can expect the new
lorries to only require £36,000 of fuel annually, and they are much more reliable. The salesmen told
me that they expect only 15% of the lorries to breakdown each year, however due to these being
much more technologically advanced it’ll cost us on average £16,000 in parts when they do
breakdown. They’ll also take an additional day to repair. We’ll also need to send our maintenance
staff to Germany for training on the maintenance and repair of the new lorries, looks like it’ll cost
£2,300 a head all in for the training.

SW: Yes I read about that, I think if we spread the training evenly over 5 months we should be able
to training all the maintenance staff without infringing on their productivity here.

MW: The Superio’s should give us additional capacity for an extra 24 jobs a year each.

SW: Good to hear, we can pursue additional contracts to fill that capacity consistently throughout
the year.

FC: We really need these new lorries as the old ones are really starting to show their age and
compared to our competitors they do not give the best impression of WLL. I agree that we should be
able to attract enough additional contracts to fill the extra capacity that the Superio’s will give us.

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SW: Vinoj, you’ve been quiet so far, anything to add about this investment?

VR: Well I imagine that if we wait for another 3 years before replacing these lorries we could
purchase the Superio’s at a lower price, I’d expect the price to be £120,000 each in current terms.
Especially as we are planning on issuing bond capital to finance this investment, if we wait we can
reduce our interest liability and inflation will work in our favour.

SW: As we can currently issue additional bond capital at face value, we should take advantage of this
opportunity to increase our borrowing without adversely affecting our gearing, I think we should
look to sell an additional £5,000,000 worth of our current bonds. Besides with fuel cost rising by 2%
a year and our maintenance and parts prices rising by 3% a year, the more efficient new trucks
become more necessary.

VR: We’ll be adjusting our job price again in April at the general inflation rate, to reflect the inflation
effect on the rest of our costs. I’m also concerned that our standard payback requirement of five
years is too long. As we will need to replace the lorries in three years anyway, perhaps we should
use a payback period of three years.

FC: Five years payback has always served us well in the past, and we still have NPV to aid our
decision making.

VR: An immediate purchase will also allow us to take advantage of capital allowances to reduce our
tax bill. As even our youngest lorry is over 10 years old our expenditure on them no longer qualifies,
but we would qualify if we purchased them now.

FC: How do the capital allowances work?

VR: The government allows us to reclaim a portion of our tax bill each year following a purchase of a
capital asset. We can claim the value of our tax rate on a portion of the value of the capital asset,
currently we can claim upon 25% of a capital assets value each year on a reducing basis for up to 10
years after purchase.

FC: That would be good as the current tax rate of 20% is really damaging our profits each year, it’ll
be good to reduce this.

VR: Yes it will, but we have to wait until a year after the investment before we start receiving any
benefits as it works in arrears, the same as our standard tax.

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Wheyland Logisics Ltd Capital Investment Procedures Summary
For the purpose of these procedures, a capital investment is defined as any major investment into
purchasing, constructing or upgrading capital assets, from which benefits will be received over
multiple years.

1. During January each year the capital investment budget will be set for the following financial
year, April to March. The budget will be set by the directors, based upon on what they
consider the company to be able to afford.
2. Later that month divisional managers will prepare and present their capital investment
requirements, under the following three headings:
i. Essential replacement of existing assets (Class 1)
ii. Strategic expansion (Class 2)
iii. Safety and regulatory expenditure (Class 3)
Final budget allocations will be made jointly by the CEO and Director for Capital Investment.
3. Applications for capital investment funds require the submission of a standard CI/3 form.
The form requires the following information:
i. Description of the proposed investment
ii. Motivations for the investment
iii. Projected costs
iv. Projected financial benefits
v. Key performance indicators for the investment, use for assessing the riskiness of the
proposal and for future investment audit
vi. Projected timescale for the completion of the investment
vii. Comments from affected area managers
Note: Class 1 investments may dispense with items ii, iv, and v. Class 3 investments may
dispense with items iv and v.
4. The CI/3 form will be assessed by the Director of Capital Investments, who will have the
following options:
i. Accept the proposal and forward to the CEO for final approval
ii. Refer the proposal back for further refinement
iii. Reject the proposal
Capital investments will be assessed with regard to net present value and payback period of
the proposed project. Class 1 projects should be considered as cost minimisation projects as
there is already an accepted requirement for continuing operations. Class 3 projects are not
required to meet financial criteria.
5. Financial projections should be calculated using the following criteria:
i. The net present value of project should be calculated using a real discount rate of
25%
ii. Projects require to maximum payback period of 5 years
iii. For net present value calculations costs and benefits are to be allocated on an
annual basis
iv. For short term cash flow forecasting costs and benefits are to be allocated on a
monthly basis
v. All projects are assessed on a 10 year planning horizon, past predictions beyond 10
years have proved to be too uncertain for investment decisions.

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6. If accepted, the Director for Capital Investments will allocate funds from the annual budget
and appoint a project supervisor, who will be responsible for the implementation and
reports of the project.
7. In due course the project may be subject to a post investment audit by the Director of
Capital Investments.

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Additional Information
Continuing lorries (not being replaced)
Number 252
Annual fuel cost £65,000
Annual maintenance cost £5,000
Probability of breakdown in 1 year 25%
Breakdown repair parts cost £6,000
Lost productive days 3
Jobs per year 250
Value per unit 31st March 2018 £4,500

General Wheyland Logistics Ltd

Information
Standard Job
Time 1 day
Customer charge £430.00
Driver wage £80.00
Number of drivers 300
Number of maintenance staff 25
Number of head office staff 25
Maintenance staff average annual wage £27,000
Head office average annual wage £34,500
Head office overheads £204,000
Workshop overheads £150,000
Debenture interest rate 6%
Debenture interest payment dates End of September and March
Debenture maturity date 31/03/2027
Fuel holdings FIFO inventory costing
Parts holding FIFO inventory costing
Dividend annual growth rate 5%
Regular dividend payment date End of June
Taxation payment date End of September during following tax year
Inflation rate Unless otherwise stated, apply general inflation
rate
Fixtures and fitting depreciation policy 20% on a reducing balance
Buildings depreciation policy WLL does not depreciate buildings

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April 2018 – March 2019 current expected jobs per month
Month Number of Jobs
April 5600
May 5700
June 6400
July 6300
August 6000
September 6400
October 7000
November 6200
December 5900
January 6300
February 6100
March 7100

WLL Ltd Financial Statements Year ending 31st March 2018

Income Statement 31/03/18 £ £
Revenue £32,250,000
Cost of Sales (Fuel) £19,932,000
Gross Profit £12,318,000
Operating Expenses
Maintenance £1,548,000
Breakdown Repairs £498,000
Breakdown Refunds £112,230
Wages £7,537,500
Headoffice overheads £204,000
Workshop overheads £150,000
Depreciation £598,500
Total Operating Expenses £10,648,230
Earnings before Interest and Tax £1,669,770
Interest £420,000
Earnings before Tax £1,249,770
Taxation £249,954
Profit for Year £999,816

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Statement of Financial Position 31/03/18
Assets
Non-Current Assets
Buildings £4,400,000
Fixtures and Fittings £850,000
Lorries £1,158,000
Total Non-Current Assets £6,408,000

Current Assets
Cash £2,679,448
Inventory (Fuel) £2,700,000
Inventory (Parts) £40,000
Total Current Assets £5,419,448
Total Assets £11,827,448

Liabilities
Non-Current Liabilities
15 year 6% Debentures £7,000,000
Total Non-Current Liabilities £7,000,000

Current Liabilities
Proposed Dividend £800,000
Accrued Tax £249,954
Total Current Liabilities £1,049,954
Total Liabilities £8,049,954

Equity
Share Capital £1,000,000
Retained Earnings
Retained Earnings 31/03/2015 £2,577,678
Dividend -£800,000
Profit for Year £999,816 £2,777,494
Total Equity £3,777,494
Total Liabilities and Equity £11,827,448

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