B. Answer the following questions taking in account the data above.

1. What does the exhibit represent?

2. Does the balance sheet balance?

3. How are assets grouped?

4. What current assets does the company possess?

5. What items are related to the fixed assets?

6. The company doesn't have long-term liabilities, does it?

7. What items does equity include?

TASK 6. Write down the bookkeeping equation on which the balance sheet is based.

TASK 7. Explain what happens to the items in the bookkeeping equation when $300 worth of unfashionable stock is reduced and sold for $150 cash.

TASK 8. Look back at the balance sheet in TASK 12 and rewrite it in the traditional style of a horizontal presentation.

TASK 9. Translate into English.

Если компания имеет более 50% обыкновенных акций другой компании, то первая (the former) называется материнской (холдинговой) компанией, а последняя (the latter) - дочерней. В этом случае составляются консолидированные (consolidated) балансовые отчеты и отчеты о прибылях

и убытках. По сути (in essence), они суммируют внешний объем продаж и расходы, при чем активы и обязательства компании берутся вместе, исключая цифры, которые полностью относятся к внутренним инвестициям и торговле.

Там, где компания владеет более 50%, но менее 100% обыкновенных акций другой компании, консолидированная отчетность содержит статьи, относящиеся к меньшинству держателей акций в дочерних компаниях. Количество прибыли в дочерней компании, на которое имеет право (to be entitled) меньшинство держателей акций, появляется в консолидированном отчете о прибылях и убытках.

Количество акционерного капитала дочерней компании, которое предоставлено меньшинством акционеров, появляется соответственно в консолидированном балансовом отчете. Группа компаний часто состоит из холдинговой и нескольких дочерних компаний.

TASK 10. Discuss with your partner the use of the balance sheet.

TASK 11. Speak about the balance sheet statement.

Listening

TASK 1. Listen to the dialogue and say what troubles the Managing Director of Proteus Group PLC which produces electrical equipment for street lightning, public buildings and sports studiums. (F.Radice, J. Elliott. English for Accountancy. Unit I.

Before listening to the dialogue pay attention to the words and expressions given.

turnover оборот

despite smth. несмотря на что-либо

recession спад

gross margin валовая прибыль, выручка

to maintain сохранять,удерживать, поддерживать

public company (PC) открытая акционерная компания

subsidiary дочерняя компания

to generate a profit получать прибыль

to absorb поглощать

to quote назначать цену, давать расценку

PLC (public limited company) открытая акционерная компания с ограниченной ответственностью

Stock Exchange фондовая биржа

TASK 2. Listen to the conversation between the managing director of Proteus explaining the situation to the new accountant and fill in the table (the points discussed about the financial picture of the company between the managing director and the accountant).

name	location	quoted on	turnover	net profit	gross margin

TASK 3. Listen to the conversation again and then complete the script.

Acc So you are a____of the Proteus____which is based in____?

MD That's right. We are a_and our shares are quoted on the____.

Acc You must be doing well. I see the ____ ___show a -___ in turnover!

MD That's true but we also had a____in our____ ___.

Acc Oh, I see. Can you explain how that happened?

MD I'm not sure. You see despite the recession our_____to Eastern

Europe____

Acc So income from sales should have risen.

MD Yes, but we only increased____by____the price of our main

product. So our_fell from 31 % to 14% per cent of sales.

Acc So your_____from sales increased but your_decreased!

MD I know. We hoped to make them rise by____sales of other ____and

maintaining our overall gross margin. But we had to absorb a price

____by one of our_____and this reduced our____ ____on our

other products by 2 per cent. Now our____profit has____...

TASK 4. Answer the following comprehension questions on the dialogue.

a. What does Proteus do?

b. Where it is based?

c. What does it make?

d. What happened recently?

e. What is a public limited company?

f. What is a managing director?

g. What is the London Stock Exchange?

h. What is the net profit?

i. What is the gross margin? j. What is turnover?

k. What are management accounts?

TASK 5. Agree or disagree.

1. It is impossible to have an increase in turnover when profits usually rise.

2. Subsidiary is money paid by the government to help a company or industry.

3. Overall gross profit is the income of a business after the deduction of all the production costs (e.g. raw materials, fuel, finished and unfinished goods in store, overheads, factory and direct labour costs).

4. The Managing Director noticed with alarm that his gross margin has fallen.

5. He was pleased with the quality of his main product.

6. He has increased turnover despite increasing the price of his main product.

7. His overall gross profit has increased to 29%.

TASK 6. Can you define what the turnover trouble is?

TASK 7. Read the dialogue and find out what expressions help to describe the financial position of a company.

TASK 8. Talk with your friend about the financial picture of a company you know.