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Old 14th Dec 2004, 12:08
  #236 (permalink)  
dde0apb
 
Join Date: Feb 1999
Location: North Cotswolds
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Newcastle pilot said
Sorry, I might have missed something obvious - but I can see from your first post the value of Aero Engineering from the Aero Club's point of view had declined to -106K (ie Eng owes Club 106K) at the end of 2003 - so how does this become 182k in your second post. Are we saying the figures in the two company's accounts don't tally.
"Shareholders funds" in the company - ie total assets less total liabilities - show as -£106k. But the total debt to the parent company - the club - is £182k. The difference is a small amount of other debt, and the company's assets. The question is whether these assets could be turned into cash if necessary. If they could, then the number (at 28/02/03) would be £106k; if any of them could not be turned into cash then the number will be somewhere between £106k and £182k.

Assets were given as

Stock and w-i-p       16,734
Trade debtors         27,963
Bank account           1,578
Other debtors         13,258
Plant and vehicles    35,180
Fixtures and fittings    760
Intangible assets      1,501

Total                 96,974

If any of this - or rather the current figures - could not be turned into cash then more of the debt will be unrecoverable - or the the club will have to wait until the engineering company is in healthy profit.
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