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    Stuck on this balance sheet, I understand that Assets - Liabilities = Net worth, and that net worth has to be raised somewhere... is my understanding right?

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    Tesco's 2006
    Tesco's has 18,644 worth of Assets, The capital employed is 15,045 there is a difference of (3599) I would have thought the Liabilities would have been (3599)

    Assets minus Liabilities = Net
    Net and Funding should balance?

    Sorry have no idea if this is right or wrong, could use some help
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    (Original post by R1C3W1N3)
    Stuck on this balance sheet, I understand that Assets - Liabilities = Net worth, and that net worth has to be raised somewhere... is my understanding right?

    Name:  BALANCESHEET.JPG
Views: 314
Size:  44.8 KB

    Tesco's 2006
    Tesco's has 18,644 worth of Assets, The capital employed is 15,045 there is a difference of (3599) I would have thought the Liabilities would have been (3599)

    Assets minus Liabilities = Net
    Net and Funding should balance?

    Sorry have no idea if this is right or wrong, could use some help
    Remember that the £18,644 is only the fixed assets e.g. shops
    There are current assets such as stock, cash/bank which

    Same goes with liabilities.
    Current liabilities - debtors, loans (less than 12 month), Overdraft
    Long term liability - Loans (more than 12 months)

    Hope this helps
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    (Original post by dan94adibi)
    Remember that the £18,644 is only the fixed assets e.g. shops
    There are current assets such as stock, cash/bank which

    Same goes with liabilities.
    Current liabilities - debtors, loans (less than 12 month), Overdraft
    Long term liability - Loans (more than 12 months)

    Hope this helps
    Hey, thanks for your help, I knew these definitions
    The (3000) figure was negative, and now all the numbers fit, thanks for replying +1
 
 
 
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