Business 7115 · O Level · Analysis of accounts

Analysis of accounts — practice question

(a(i))[4]

Calculate the profit per day for AH using the information in Appendix 3.

(a(ii))[4]

Identify and explain one method AH could use to increase profit at the current site.

(b)[12]

Consider why a cash flow forecast, an income statement and a balance sheet matter to AH. Which one of these do you judge to be the most important for Elsie’s decision on how to finance the new site? 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: Daily revenue = (25 \times $5) + (25 \times $10) = $375

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