25 Need-To-Know Management Ratios

4

The big picture

This chapter will:

• Look at the balance sheet and profit and loss account together
• Introduce you to an example company with some example data
• Cover two alternative balance sheet layouts

Working data

Throughout the various stages of the book we will work with an illustrative set of data for an example company.

The Example Co. plc

Figure 4.1 shows for the Example Co. plc:

• the balance sheet
• the profit and loss account
• share data.

The Example Co. plc has been devised with simple numbers to highlight various aspects of accounts and show the calculation of ratios.

Figure 4.1 Working data – the Example Co. plc

It is worthwhile ...