The following information relates to T Ltd for the year ended 31 December 2022. Non-current assets Land and buildings $150 000 Plant and machinery $120 000 Current assets Inventory $16 000 Trade receivables $18 000 Bank $12 000 Current liabilities Trade payables $10 000 Long-term loan (repayable in 2026) $80 000 Issued share capital $100 000 Retained earnings $50 000 Share premium $20 000

Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

1. 24(a)(i) Working capital = Current assets – Current liabilities (1) = (16 000 + 18 000 + 12 000) – 10 000 (1) = 36 000
2. 24(a)(ii) Capital employed = Issued share capital + Share premium + Retained earnings + Long-term loan (1) = 100 000 + 20 000 + 50 000 + 80 000 (1) = 250 000
3. 24(a)(iii) Non-current assets = Land and buildings + Plant and machinery (1) = 150 000 + 120 000 (1) = 270 000
4. 24(a)(iv) Total assets = Non-current assets + Current assets (1) = 270 000 (OF) + 46 000 (1) = 316 000
5. 24(b) Award up to 2 marks for identification and explanation. Maximum of 4 marks.
6. • Customer satisfaction (1) to show if customers are happy with goods/services (1) so the business knows whether it is meeting customer needs (1).
7. • Employee satisfaction (1) to show if employees are happy with their working conditions (1) so that employee turnover is reduced (1).
8. • Environmental impact (1) to show how the business is impacting the environment (1) so it can make decisions to be more sustainable (1).
9. • Market research (1) to find out about competition/market trends (1) to assist in future planning (1).