Page 50 - A Level Business Studies - Financial Analysis Tasks
P. 50
Task 1.b
Look at the extract of the Statement of Financial Position and calculate the Current Ratio.
Statement of Financial Position - Example (Extract)
£ £
CURRENT ASSETS
Inventory (Stock) 12,000
Trade Receivables (Debtors) 22,000
Cash & Cash Equivalents (Cash & Bank) 7,000
41,000
Less CURRENT LIABILITIES
Trade Payables (Creditors) 15,400
VAT due to HRMC 12,000 27,400
Net Current Assets 13,600
Current Ratio :1
Task 1.c
Look at the extract of the Statement of Financial Position and calculate the Current Ratio.
Statement of Financial Position - Example (Extract)
£ £
CURRENT ASSETS
Inventory (Stock) 67,000
Trade Receivables (Debtors) 24,000
Cash & Cash Equivalents (Cash & Bank) 9,000
100,000
Less CURRENT LIABILITIES
Trade Payables (Creditors) 60,000
VAT due to HRMC 40,000 100,000
Net Current Assets 0
Current Ratio :1
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