21. Balance Sheets
Parker Publishing Group Plc
Balance Sheet audited for the year to march 31st 2007
Computers and other equipment 2
Total fixed assets 58
Money outstanding 12
Other current assets 2
Total current assets: 19
Current liabilities: 7
Long-term liabilities: 23
Assets less liabilities: 47
Money invested in Parker Publishing
Share capital (40m 50p shares) 20
1. Property d. land, buildings and parts of buildings
2. fleet a. vehicles (cars, delivery vans, lorries etc)
3. stock g. goods not yet sold
4. outstanding b. not yet paid(in this case, not yet paid to Parker Publishing)
5. current liabilities e. money which must be paid out within one year.
6. long-term liabilities f. money which must be paid out after one year
7. share capital h. money raised by issuing shares in the company
8. reserves c. money deposited in bank accounts
Parker Publishing was founded in 1872 by Hieronymous Parker, originally as the publisher of a religious periodic called The Preacher. It now specializes in life style magazine, and through its subsidiary Tekpress, also publishes several highly successful periodicals o consumer interest subject as computing and hi-fi. The distribution arm also distributes magazines from other publishers, and has become highly profitable in its own right.
The company went public in 1987. The shares, original priced at 50p, are trading at the time of writing fro around f3.20.
Like many magazine publishers, Parker are vulnerable cash flow problems. As their magazines are on sale or retain, they usually have millions of pounds outstanding from retailers, and have liabilities of several million more in printers’ bills. In addition they have to keep large sum of money tied up in stock – the firm’s warehouse in London and Manchester usually contain around five million pounds’ worth of magazines.
1. What are Parker Publishing’s main current liabilities? a
a. money owed to other companies(particularly printers)
b. salaries and wages
2. The article does not mention long-term liabilities. In the case of Parker Publishing are these more likely to be…? b
a. money that must be paid to printers in the distribute future.
b. Repayment on a bank loans used to buy a fleet of lorries and the warehouse in Manchester.
3. The company’s share capital is f20m. Does this mean that…? b
a. their shares are currently worth a total of f20m
b. the shares were worth f20m when is used, but are now worth much more
4. What is company currently worth? c