Business 7115 · O Level · Analysis of accounts

Analysis of accounts — practice question

(a)[8]

Using the figures in Appendix 3, calculate these ratios for CC: • Gross profit margin • Profit margin • Current ratio • Acid test ratio Show your workings.

(b)[12]

Consider how the following three government legal controls could affect CC. Which change is likely to have the biggest impact on profit? Support your answer. • An increase in the minimum wage • Tighter controls on what can be written 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: Gross profit margin is gross profit / revenue \times 100 = 50%

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