The following is a brief analysis of the business information provided by Wadhha.
Wadhha started the boatyard business with a small amount of her savings forming her initial investment into the business. This had a dual effect i.e., on one side it increased the company's assets being cash while on the other aspect it increased the capital invested into the company.
In her quest to get on doing some business, she purchased a running boatyard business at a fair negotiable price. This entitled her the benefits of acquiring an old business and saving her the hassle of forming and establishing an entirely new business.
The need for additional funds to finance the business was met by borrowing funds from a friend. It further had double effects i.e., on one side it increased the company's assets being cash and on the other side, it increased the company's liabilities.
The wharf and store were also of attraction to the customers who were mostly the holiday makers for boating purposes and the company made the most of this attraction by offering fishing tackle, sporting goods and other refreshments.
The most of the expenses incurred by company would be on the maintenance of the land, building, store, petrol and diesel pumps, work shed etc, the labour wages expenses, any interest on the borrowings etc.
The company possesses great future prospects if the assets are utilised efficiently and effectively towards the generation and maximisation of revenues, so that the expenses could easily be met and the liabilities be paid off on time.
The Wadhha's boatyard owns all the fixed assets needed to run the company, however not much information is provided regarding the current assets of