Page 457 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

Questions 21–25
The following financial data has been extracted from the income statement and balance sheet of a company.

$000s

Revenue 300
Gross profit 200
Profit 150

Current assets 60
Current liabilities 30
Inventories 30

Capital employed 100

Use the table above to identify the correct value for:

21 The gross profit margin

A 1
B 50%

C 2
D 66.6%

22 The current ratio
A 1

B 50%
C 2

D 66.6%

23 The return on capital employed

A 1
B 50%

C 2
D 66.6%

24 The acid test ratio
A 1
B 50%

C 2
D 66.6%

25 The net profit margin
A 1

B 50%
C 2

D 66.6%

© Cambridge University Press 2014 IGCSE Business Studies Section 5 – Multiple choice 4