Page 59 - A Level Business Studies - Financial Analysis Tasks
P. 59
Task 3.c
Look at the extract of the Statement of Financial Position and answer the questions below
Statement of Financial Position - Example (Extract)
Year 1 Year 2
£ £ £ £
CURRENT ASSETS
Inventory (Stock) 14,000 25,000
Trade Receivables (Debtors) 12,000 26,000
Cash & Cash Equivalents (Cash & Bank) 20,000 11,000
46,000 62,000
Less CURRENT LIABILITIES
Trade Payables (Creditors) 20,000 35,000
VAT due to HRMC 3,000 23,000 10,000 45,000
Net Current Assets 23,000 17,000
1 What is the Current Ratio in Year 1? What is the Current Ratio in Year 2?
2 What is the Acid Test Ratio in Year 1? What is the Acid Test Ratio in Year 2?
3 Suggest reasons why the Current Ratio might increase from one year to the next?
59 | P a g e © B u i l d Y o u r S k i l l 2 0 2 0
