(a)[4]
Prepare the cash account, making Razia’s drawings for the year clear.
(b)[4]
Calculate the value of inventory stolen during the year ended 30 June 2016 at cost price.
(c)[8]
Prepare the income statement for the year ended 30 June 2016.
(d(i))[2]
Calculate, to two decimal places, the current ratio at 30 June 2016. State the formula used.
(d(ii))[2]
Calculate, to two decimal places, the liquid (acid test) ratio at 30 June 2016. State the formula used.
(e(i))[2]
Name two other ratios a business could calculate to explain its liquidity position.
(e(ii))[2]
State two limitations of using ratio analysis.
(f)[6]
Advise Razia whether she ought to increase the mark-up on her goods. Justify your answer by weighing up the advantages and disadvantages of doing so.