- •Государственное образовательное учреждение высшего профессионального образования
- •«Хабаровская государственная академия экономики и права»
- •Linguaphone Business English
- •COMPANY STRUCTURE
- •Ground Plan of Headquarters
- •File 1
- •Exercise 4. Complete Thomas Willhite’s notes on Annique Demeyer’s report. Use the words given.
- •File 2
- •Mind the prepositions
- •Read the text
- •File 3
- •Willhite: Look, Colin, I can’t talk now. I’m in the middle of a meeting.
- •Company: Can-Am Sports
- •Telephone Number: (416) 555-8000
- •REVISION
- •ROLE PLAY
- •Invent a company and make a presentation of it in class.
- •COMPANY PROFILE
- •to crown – to complete worthily; to make smth perfect or complete, by adding an achievement
- •BUSINESS WOMAN OF THE YEAR
- •Answer the questions:
- •1. What were the main reasons for the company’s success?
- •FILE 2
- •File 3
- •a (business) contact – a person, especially in a high position, who can give you useful information or introductions which will help you at work or socially
- •REVISION
- •ROLE PLAYS
- •PJ FOODS RATONALISES EUROPEAN OPERATIONS
- •HUNDREDS OF MANAGERS TO GO
- •SUPERSUB: CLEAN; SIMPLE; HEALTHY
- •File 1
- •Debt crisis
- •Government measures
- •Consequences
- •Current position
- •FILE 3
- •Assingment 1.
96
Background to the case. Read the extract on Nigeria from an economic review.
Basic Data
|
Nigeria |
Area (square kms) |
923773 |
Population |
92 m |
GNP |
$84 000 m |
Debt crisis
82% of Nigeria’s export earnings come from oil.
In 1981 the price of oil collapsed: export earnings fell from $26 billion to $10 billion in 5 years
The country’s foreign debt rose to $19 billion
Government measures
To reduce import the government:
a)introduced import licences for all products.
b)introduced an import surcharge of 30%.
c)increased import duties.
d)reduced the foreign exchange available for imports.
e)allowed the value of the naira to fall.
Consequences
The balance of payments improved but the economy stagnated.
The government had to introduce new measures to stimulate the economy, especially exports.
Current position
Exporters can keep 25% of their foreign currency earnings.
Business people can open external bank accounts – foreign currency accounts in Nigeria.
Providing they have an import licence, importers can bid for foreign exchange. The exchange available goes to the highest bidder.
Θ Now listen to recorded extracts from the review and answer the questions.
1.What is Star-Line’s business?
2.What is their main supplier?
3.What is the country’s economic situation?
4.What does the government do to stimulate the economy?
5.How does the country get foreign currency?
97
Can you talk about the economy of your country? Listen to the recorded statement about Nigeria, and then prepare a short statement about your country’s economy.
Θ Star-Line has the jewellery concession in the duty-free areas in Lagos and Kano airports. About 70% of the goods bought in these shops are paid for in foreign currency. Government regulations allow the company to keep 25% of this foreign exchange. In the past, Star-Line has earned enough foreign currency in this way to pay its foreign suppliers. But one day Johnson Odusanya, Star-Line’s Managing Director, receives the letter from his main supplier.
Read the letter.
Essil d’Or
5 rue de la Paix
75001 Paris
Tel (+331) 47208898
Telex 26172 Essil
Fax (+331) 47204128
Mr. Johnson Odusanya
Managing Director 19 December 19 ..
Star-Line Jewellers Nigeria Ltd
17 Famolo Shopping Centre
Ikoyi Island
Lagos, Nigeria
Dear Mr. Odusanya,
We do not appear to have received payment of our invoice, dated 7 Nov. 19.., for F475192. This invoice is now overdue.
The agreed credit facilities require payment within 30days of date of invoice. We would be pleased, therefore, to receive your payment by return.
Alternatively, please notify us of any problems you may have with this invoice.
If you have already paid this account, please ignore this letter and accept our apologies.
Yours truly,
Christine Calvet,
Export Sales Manager
98
Answer the questions:
1.How does Star-Line earn foreign currency?
2.What problems are government restrictions creating for Star-Line?
3.What are terms of payment offered by Essil d’Or?
ΘMadame Calvet’s letter to Johnson Odusanya is polite but firm. Listen to the recording where two stronger versions of the letter are dictated. Write them down.
ΘIn order to attract customers who are not travelling by air, Star-Line recently opened a shop in the exclusive Falomo Shopping Centre in Lagos. The new shop is doing well, but there are problems – as Johnson Odusanya explains in a letter to Christine Calvet.
Read the letter.
Star-Line
Star-Line Jewellers Nigeria Ltd
17 Falomo Shopping Centre
Ikoyi Island, Lagos, Nigeria
Mme Christine Calvet
Essil d’Or
5 rue de la Paix 28.12.19..
75001 Paris France
Dear Mme Christine Calvet
I regret that we were unable to settle our November account.
As you know, we recently opened a new outlet in the Falomo Shopping Centre in Lagos. As a result, our sales of Essil’s products have increased significantly. We are confident this trend will continue.
However, at present, we are having some difficulty making payments abroad. This is because there are government restrictions on the purchase of foreign exchange. In the past, we have earned enough foreign currency in our duty-free shops to settle our foreign accounts out of our foreign currency earnings.
99
But our imports have increased since the new shop opened, and we are now having to apply to the Central Bank of Nigeria for some of the foreign exchange we need.
As soon as we receive the necessary currency, we will clear the account. In the meantime, we are arranging a telegraphic transfer of F368249 in part payment.
As our record of payment has always been good, we ask you to agree to this delay, and to continue to supply our orders.
We thank you in advance for your understanding.
Yours faithfully
Managing Director
Johnson Odusanya (Mr)
When his secretary has typed the letter, Johnson Odusanya reads it through. He marks some errors in style. Correct the errors.
Answer the questions:
1.What does the company do to earn more foreign currency?
2.What does Mr. Odusanya suggest in order to settle their payment problems?
Revision of the file
Exercise 1. Read and translate the sentences in which the words from the glossary list are used.
Exercise 2. Make up a phone conversation based on the correspondence between Star-
Line and Essil d’Or to discuss the problem of payment.
Exercise 3. Translate from Russian into English.
1.75% экспортных доходов поступает от продажи нефти.
2.В 1981 году цены на нефть резко упали и внешний долг страны возрос до 19 млрд долларов.
100
3.В целях стимулирования экономики правительство ввело меры по ограничению импорта, что привело к некоторому улучшению платёжного баланса, но застой продолжался.
4.Введение лицензий на импорт и дополнительного налога привело к снижению объёма импорта.
5.Вследствие жёстких ограничений в покупке иностранной валюты компании не в состоянии оплачивать импортные заказы.
6.Чтобы привлечь иностранную валюту в страну, бизнесменам было разрешено открывать внешние счета.
7.Импортёрам было разрешено сохранять не более 25% валюты, но они могли бы купить её, при этом имеющуюся в наличии валюту получал тот, кто предлагал наиболее высокую цену.
8.Условия предоставления кредита предусматривают, что оплата должна быть произведена в течение 30 дней с даты получения счёта-фактуры.
9.В прошлом компания зарабатывала достаточно иностранной валюты, т.к. имела несколько торговых точек в свободных от пошлин зонах.
Exercise 4. Give the summary of the file.
FILE 2
Glossary
Make sure that you know these words. Find their Russian equivalents.
turnover – total value of business done during a given period of time
gross profit – difference between the value of sales and the cost of goods sold interest payable – money (per cent) paid for the use of money
charge interest on – ask to pay money for the use of money net profit – profit after payment of income tax
fixed assets – possessions of a long lasting and unchanging nature such as land, buildings, machinery
101
current assets – assets which can be consumed or turned into cash (stock, raw materials, book debts (syn. circulating assets)
stock – a store of goods or raw materials debtors – a person owing money to another
liabilities – an amount of money owed by a business to the supplier, lender, etc. current liabilities – debts that must be paid within one year
long term liabilities – money that must be paid after more then one year accruals – continual increase and growth
creditors – a person or business to whom another person or business owes money net assets – difference between assets and liabilities (excess of assets over liabilities)
provision for tax – setting aside (keeping) money (reserves) for tax that the company will probably have to pay
give priority – deal with what is the most important first, consider smth that needs attention before others
statement of account – a document sent regularly to a buyer who has an account with a particular seller, showing the dates of invoices sent to the buyer, the dates and amounts of payments made and the total that must be paid
open account (charge account, credit account) – an arrangement by which the customer can buy goods up to an agreed value every month and is allowed to pay for them at the end of an agreed period
meet orders – fulfill orders
withdraw credit facilities – to remove, to take back; to cancel credit agreement
hard currency – currency that keeps its value or whose value increases in relation to other currencies, and is used for international payments
Nigeria’s debt crisis and government measures to reduce imports are creating problems for Star-Line Jewellers. The company is having difficulty making payments abroad. Its foreign trade debts are rising. Essil d’Or of Paris, one of Star-Line’s main suppliers, is showing concern.
Θ Star-Line’s accounting year ends on the 31st March. The annual accounts indicate the company is still having difficulty making payments abroad. According to the accounts, Star-Line now owes Essil d’Or $151732 – an increase of $133606 in three months.
102
Read the accounts for the current year.
Profit and Loss Account |
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Balance Sheet |
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Current year |
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Current year |
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$ 000 |
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$ 000 |
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Turnover |
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5710 |
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Fixed assets |
889 |
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Cost of goods sold |
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Current assets |
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Purchases |
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1715 |
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Stock |
223 |
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Import Duties |
515 |
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Debtors |
53 |
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Import Surcharges |
326 |
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Cash |
185 |
461 |
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Air Freight & |
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Insurance |
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49 |
2605 |
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Total assets |
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1350 |
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Gross Profit |
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3105 |
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Current liabilities |
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Trade creditors: |
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Expenses |
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Amounts due within |
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Administration |
2570 |
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one year |
390 |
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Interest payable |
50 |
2620 |
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accruals |
106 |
496 |
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Profit before tax |
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485 |
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Long term liabilities |
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Provision for tax |
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Creditors: |
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Corporation |
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Amounts due after |
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Tax (40%) |
194 |
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More than one year |
125 |
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Local (State) |
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Bank loan |
250 |
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Tax (7%) |
34 |
$ 228 |
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Directors loan a/c |
50 |
425 |
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Net Profit |
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$257 |
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Total liabilities |
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921 |
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Net assets |
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$ 429 |
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Notes |
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Capital reserves |
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1) Breakdown of turnover |
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Common shares |
100 |
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Duty-free shops at Lagos & |
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Profit and Loss a/c |
322 |
$ 429 |
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Kano airports |
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4 493 880 |
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Falomo Shopping Centre |
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Ikoyi (Lagos) 6 months 1 216 034 |
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Notes |
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1) |
Cash balances include sums reserved for |
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Total |
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$ 5 709 914 |
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payment of overseas suppliers. |
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2) |
Trade creditors include $151 732 owed to |
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2) 50% of turnover is from sales |
of |
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Essil d’or of France. |
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products |
imported |
from |
hard |
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currency areas. |
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3) Administrative |
expenses |
include |
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airport |
concession |
fees |
of |
$ |
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1 |
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797 552. |
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103
Θ Exercise 1. These are Star-Line’s accounts for last year. Listen to the recording and write in the missing figures.
Profit and Loss Account |
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Balance Sheet |
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Last year |
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Last year |
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$ 000 |
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$ 000 |
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Fixed assets |
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.......... |
Turnover |
...... |
Current assets |
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……… |
Cost of goods sold |
1697 |
Stock |
……… |
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Gross profit |
... .…… |
Debtors |
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21 |
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Expenses |
2173 |
Cash |
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35 |
463 |
Profit before tax |
......... |
Total assets |
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862 |
Provision for tax |
146 |
Current liabilities |
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Net profit |
210 |
Trade creditors |
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....... |
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Accruals |
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98 |
218 |
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Longterm liabilities |
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Creditors |
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110 |
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Total liabilities |
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328 |
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Net assets |
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534 |
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Capital reserves |
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Common shares |
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100 |
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Profit & Loss a/c |
434 |
534 |
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Exercise 2. Compare last year’s figures with the figures for the current year. Tick the correct box ( √ ).
Turnover
a)is up on last year
b)is down on last year
c)is about the same as last year
104
Net profit
a)has gone up since last year
b)has gone down since last year
c)is about the same as last year
Capital reserves
a)have increased since last year
b)have decreased since last year
c)are about the same as last year
Current assets
a)are up on last year
b)are down on last year
c)are about the same as last year
Net assets
a)have risen since last year
b)have fallen since last year
c)are about the same as last year
Gross profit
a)is higher than last year
b)is lower than last year
c)is about the same as last year
Exercise 3. Make the conclusion about company’s current financial situation.
Θ Star-Line can apply to the Central Bank of Nigeria for the extra foreign currency it needs, but it must first have an import licence. The company has applied for a licence, but there are delays. «We are giving priority to imports of essential raw materials, machinery, and agricultural equipment » officials at the Ministry of Commerce explain. Early in
April, Star-Line receives this letter.
105
Read the letter.
Essil d’Or
5 rue de la Paix
75001 Paris
Tel (+331) 47208898
Telex 26172 Essil
Fax (+331) 47204128
Mr. Johnson Odusanya
Managing Director
Star-Line Jewellers Nigeria Ltd.
17 Falomo Shopping Centre
Ikoyi Island
Lagos Nigeria
Dear Mr. Odusanya
I enclose an up-to-date statement of your account. I note that in spite of previous requests, several items remain long overdue.
As you know, our open account terms are payment in full within 30 days of date of invoice. Over the past months, we have continued to fulfil your orders because you have always settled your accounts satisfactorily.
However, in view of the present situation, I now have to advise you that Essil d’Or cannot meet your April order, or any subsequent orders, until all outstanding sums have been paid in full.
I also have to advise you that unless your payment is received within 14 days of the date of this letter, Essil d’Or will withdraw credit facilities from your company.
Yours sincerely
Christine Calvet
Export Sales Manager
Encl : 1
Θ Now listen to recorded extracts from the letter.
106
Exercise 4. Read Christine Calvet’s letter straight through twice. Then read these three summaries. Which of the summaries gives the essential information in the letter? Tick the correct variant ( √ ).
a. Star-Line’s account is overdue. Essil d’Or has continued to fulfill orders because StarLine’s a good customer. But now Essil d’Or won’t meet any more orders until the outstanding sums have been settled. ( )
b.Essil d’Or encloses an up-to-date statement of account. Some items are long overdue.
Essil d’or will withdraw credit facilities, unless Star-Line settles the account in full within the next 14 days. ( )
c.Essil d’Or will not meet any more orders until Star-Line has settled the account in full. ( )
d. If Star-Line does not pay within 14 days, Essil d’Or will withdraw credit facilities. ( )
Exercise 5. Find the definition (a-j) for each expression (1-10). Give Russian equivalents.
1) |
subsequent |
a) late, not paid on time |
2) |
due |
b) tell, inform, warn |
3) |
overdue |
c) conditions |
4) |
items |
d) not yet paid |
5) |
terms |
e) considering, taking into account |
6) |
in full |
f) later, following |
7) |
in view of |
g) remove, take back |
8) |
outstanding |
h) expected now, owed |
9) |
advise |
i) things sold |
10) withdraw |
j) completely |
Exercise 6. Look through Star-Line’s statement of account. Then answer these questions.
STATEMENT OF ACCOUNT
Please quote your account number on orders, payments, and correspondence.
Account No. |
This statement does not include invoices |
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S 124209 |
issued or payments received after 28/3/19.. |
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Date |
Reference |
Debit |
Credit |
Balance |
7/11/19.. |
Invoice P4527 |
475 192 |
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475192 |
28/12/19.. |
Payment |
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368249 |
106943 |
107
4/1/19.. |
Invoice KO173 |
479198 |
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586141 |
18/1/19.. |
Invoice K 5420 |
484 768 |
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1070909 |
7/2/19.. |
Payment |
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363712 |
687179 |
16/2/19.. |
Payment |
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365859 |
321338 |
21/2/19.. |
Invoice P6004 |
468200 |
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789538 |
6/3/19.. |
Payment |
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380709 |
404830 |
13/3/19.. |
Invoice R7115 |
490390 |
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895220 |
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Amount Due |
F 895220 |
What is Star-Line’s account number ? |
S 124209 |
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How much was invoice KO173 ? |
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F 479198 |
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a)What was the balance on 16 February ? _____________________________________
b)What was the date of invoice P6004 ? ______________________________________
c)How much did Star-Line pay on 28 December ? ______________________________
d)Which invoice was dated 18 January ? _____________________________________
e)How much was debited from the account on 21 February ? ______________________
f)What is the amount due now ? ____________________________________________
Revision of the file
Exercsie 1. Give English equivalents and use them in the sentences of your own.
Товарооборот, валовая прибыль, чистая прибыль, административные расходы, резерв для уплаты налога, основные средства, оборотные средства, текущие обязательства, приращение задолженности, долгосрочные обязательства, чистые активы, основные фонды, отдавать преимущество, сырьё, отчёт о состоянии счетов на данный момент, неоплаченный счёт, просроченный платёж, условия открытого счета, выполнять заказы, аннулировать кредит.
Exercise 2. Give the summary of the file.