The company Balance Sheet enables David to judge how well the business is performing.
(a(i))[4]
Calculate both the current ratio and acid test ratio for 2014.
(a(ii))[4]
Use Appendix 2 to compare your two ratio results with the 2013 figures.
(b)[12]
David wants to improve efficiency in his factory. Consider Option A and Option B, then recommend which one he should choose. Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Current ratio works out at 1000/600 = 1.66 or 1.67” …