Business Studies – 5.4.1 The main elements of a statement of financial position | e-Consult

(a) The statement of financial position does not explicitly state the value of fixed assets. However, fixed assets are assets that are used in the business for more than one year. In this case, the only asset that could reasonably be considered a fixed asset is the 'Fixtures & Fittings' which is not listed. Therefore, we cannot calculate the value of fixed assets from the given information. Answer: Cannot be determined from the information provided.

(b) Capital Employed is the amount of money used to finance the business. It is calculated as: Capital Employed = Total Assets - Total Current Liabilities

Total Assets: £5,000 + £18,000 + £10,000 = £33,000

Total Current Liabilities: £7,000 + £20,000 = £27,000

Capital Employed: £33,000 - £27,000 = £6,000

Therefore, the capital employed by Green Grocers is £6,000.