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5 marksFinancial Statements Analysis

CAPE Management of Business Unit 1 · 2014 · Paper 2 · Question 6(b)(iv)

The financial statements (Income Statement and Balance Sheet as at 30 June 2013) of Ross Enterprise are given.

Compute, correct to one decimal place, the Return on Capital or Equity for the year ended 30 June 2013, and explain what it indicates about the performance of the company.

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Other parts of this question

  1. 6(a)(i)Define the term 'ratio analysis'.[2 marks]
  2. 6(a)(ii)State THREE ways in which ratio analysis is important to businesses.[3 marks]
  3. 6(b)(i)Compute, correct to one decimal place, the Acid Test ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.[5 marks]
  4. 6(b)(ii)Compute, correct to one decimal place, the Gearing Ratio for the year ended 30 June 2013, and explain what it indicates about the performance of the company.[5 marks]
  5. 6(b)(iii)Compute, correct to one decimal place, the Net Profit Margin for the year ended 30 June 2013, and explain what it indicates about the performance of the…[5 marks]

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