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SCENARIO

As a clerical officer in the finance department of Argon Mining Company you are required to draw up a company balance sheet using a spreadsheet.

The following data is given to you as a basis for the spreadsheet:

Fixed assets:

- tangible assets: 587

- intangible assets: 125

- investment: 158

Current assets:

- cash in bank: 63

- debtors: 96

- stacks: 401

- investments: 85

Current liabilities:

- finance debts: 155

- other creditors: 320

Long-term liabilities:

- finance debts: 92

- other creditors: 125

Capital:

- share capital: 140

- share premium account: 164

In addition, you must provide space on your spreadsheet for the following items, which will have data calculated into them from the data in the items above:

- fixed assets total

- current assets total

- current liabilities total

- long-term liabilities total

- net current assets

- total assets less current liabilities

- net assets

- capital total

- reserves

- total capital and reserves

You are required to enter the data given to you into your spreadsheet and then work out and enter the following data:

- total for fixed assets

- total for current assets

- total for current liabilities

- total for long-term liabilities

- total for capital

- net current assets (current assets - current liabilities)

- total assets (fixed assets + net current assets)

- net assets (total assets - long-term liabilities)

- reserves (net assets - capital)

- total capital and reserves (capital + reserves)

NOTE: net assets and total capital & reserves should always balance.

 

TASK ONE

1. Design the layout of your balance sheet spreadsheet on paper.

2. Load SPREADSHEET and set up your design.

3. Enter the data given to you into the spreadsheet.

4. Work out, using appropriate formulae, the other data (eg. net current assets etc.).

5. Enter the following title at the top of your spreadsheet:

BALANCE SHEET FOR THE ARGON MINING COMPANY 1986

Figures in # million

Prepared by (enter your name here)

6. Save and produce a printout of your spreadsheet.

 

TASK TWO

1. In 1987 the following changes took place in the company's fortunes:

- cash in bank: 52

- finance debts(long-term): 182

- investments: 32

- other creditors: 356

Enter the new figures into your spreadsheet. If you have entered your formulae correctly then the spreadsheet should recalculate the appropriate figures and give you a new figure for 'total capital and reserves'.

2. Change the year in the title of your spreadsheet from 1986 to 1987.

3. Decide whether the company is more or less profitable in 1987 than it was in 1986.

4. Save your new spreadsheet.

5. Produce a printout of your spreadsheet.

6. Close down the system.