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Interpret the contents of a trading and profit and loss account and balance sheet for a selected company

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Interpret the contents of a trading and profit and loss account and balance sheet for a selected company
Interpret the contents of a trading and profit and loss account and balance sheet for a selected company, explaining how accounting ratios can be used to monitor the financial performance of the organisation.

Profit and loss account and balance sheet for Tesco.
Consolidated Profit & Loss Account for the year ended

2013
2014

Weeks
52
52

Currency

£ Million

£ Million

Turnover

23653.0

20988.0

Cost of sales

-21866.0

-19400.0

Gross Profit

1787.0

1588.0

Operating Expenses

-465.0

-422.0

Operating Profit

1322.0

1166.0

Other costs/income

32.0

13.0

Profit before interest and taxation

1354.0

1179.0

Net interest receivable (payable)

-153.0

-125.0

Profit on ordinary activities before taxation

1201.0

1054.0

Tax on profit on ordinary activities

-371.0

-333.0

Profit on ordinary activities after taxation

830.0

721.0

Equity minority interests

0.0

1.0

Profit for the financial period

830.0

722.0

Dividends

-390.0

-340.0

Retained profit

440.0

382.0

Consolidated Balance Sheet

Fixed assets

Intangible Assets

154.0

154.0

Tangible Assets

11032.0

9580.0

Investments

317.0

304.0

Total Fixed Assets

11503.0

10038.0

Current assets

Stock

929.0

838.0

Debtors due within one year

454.0

322.0

Short-term investments

225.0

255.0

Cash at bank and in hand

445.0

279.0

Total Current Assets

2053.0

1694.0

Creditors: Amounts falling due within one year

-4809.0

-4389.0

Net Current Assets (liabilities)

-2756.0

-2695.0

Total assets less current liabilities

8747.0

7343.0

Creditors: Amounts falling due after more than one year

-2741.0

-1927.0

Provisions for liabilities and charges

-440.0

-402.0

Net assets

5566.0

5014.0

Capital and reserves

Called-up share capital

350.0

347.0

Share premium

2004.0

1870.0

Other reserves

40.0

40.0

Profit and loss account

3136.0

2721.0

Equity shareholders' funds

5530.0

4978.0

Minority interests

36.0

36.0

Total capital employed

5566.0

5014.0

Weighted average number of
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