Page 54 - A Level Business Studies - Financial Analysis Tasks
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Task 2.b
Look at the extract of the Statement of Financial Position and calculate the Acid Test Ratio
Statement of Financial Position - Example (Extract)
£ £
CURRENT ASSETS
Inventory (Stock) 40,000
Trade Receivables (Debtors) 15,000
Cash & Cash Equivalents (Cash & Bank) 3,000
58,000
Less CURRENT LIABILITIES
Trade Payables (Creditors) 10,000
VAT due to HRMC 5,000 15,000
Net Current Assets 43,000
Acid Test Ratio :1
Task2.c
Look at the extract of the Statement of Financial Position and calculate the Acid Test Ratio
Statement of Financial Position - Example (Extract)
£ £
CURRENT ASSETS
Inventory (Stock) 5,000
Trade Receivables (Debtors) 3,000
Cash & Cash Equivalents (Cash & Bank) 2,000
10,000
Less CURRENT LIABILITIES
Trade Payables (Creditors) 5,000
VAT due to HRMC 3,000 8,000
Net Current Asset 2,000
Acid Test Ratio :1
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