Business 0450 · IGCSE · Analysis of accounts

Analysis of accounts — practice question

(a)[8]

From the information in Appendix 3, work out these ratios for CC: • Gross profit margin • Profit margin • Current ratio • Acid test ratio Show your working.

(b)[12]

Consider the effect on profit of the following three government legal controls. Which one is likely to have the biggest effect on profit? Give reasons for your answer. • Increase in the minimum wage • More controls over what can be stated in advertisements • No waste plastic can be sent to landfill sites

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Correct gross profit margin formula with the right calculation

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