Look in and around the workplace,make a list of at least 5 fixed assets and note the purpose of each.
Take note of all stock items in your organisation or department, make a rough list of as many items as possible.
Access the Balance Sheet provided as a hand out ,evaluate the balance sheet to make sure you understand the areas stipulated in the sheet.
1. Fixed assets in and around the workplace:
- Computers: Used for employee workstations and to carry out various tasks such as data analysis, communication, and document creation.
- Phone system: Facilitates internal and external communication within the organization.
- Furniture: Provides comfort and support for employees and clients during meetings and work hours.
- Server: Stores and manages data, enabling access to information and network resources for employees.
- Vehicles: Used for transportation of goods or services, for sales or delivery purposes, or for employee commuting.
2. Stock items in the organization or department:
- Office supplies: Pens, paper, folders, and other necessary items for administrative tasks.
- Inventory: Products or materials that the organization sells or uses in its operations.
- Spare parts: Components required to maintain or repair equipment and machinery.
- Cleaning supplies: Products used to keep the workplace hygienic and presentable.
- Personal protective equipment (PPE): Gear such as gloves, helmets, and safety goggles to ensure employee safety.
3. Evaluating the Balance Sheet:
- Check the assets section: Look for the values of fixed assets, long-term investments, and current assets. Ensure that the values match the expectation and represent the organization's holdings accurately.
- Review the liabilities section: Check the amounts owed to creditors and any long-term debts. Verify whether the stated liabilities are consistent with the organization's financial situation.
- Examine the equity section: Understand the different components of equity, such as retained earnings and owner's equity. Determine if the values align with the organization's financial performance and ownership structure.
- Analyze the notes to the financial statements: Read any additional information or explanations provided alongside the balance sheet to gain a better understanding of the figures mentioned. Pay attention to any significant events or transactions that might affect the organization's financial position.
- Calculate key financial ratios: Utilize the figures from the balance sheet to calculate ratios such as current ratio, debt-to-equity ratio, and return on assets. Evaluate these ratios to assess the organization's financial health and performance.