Business 7115 · O Level · Analysis of accounts

Analysis of accounts — practice question

David can use the company Balance Sheet to judge how well the business is performing.
(a(i))[4]

Calculate the current ratio and acid test ratio in 2014.

(a(ii))[4]

Compare your two ratio results against those for 2013 (see Appendix 2).

(b)[12]

David wants to raise 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 comes to 1000/600 = 1.66 : 1 / 1.67 : 1

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