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5 marksFinancial Statements Analysis

CAPE Management of Business Unit 1 · 2009 · Paper 2 · Question 6(c)(iii)

Calculate the Gearing Ratio for Eastwood Hardware Ltd. and explain its implication.

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Other parts of this question

  1. 6(a)Identify the appropriate balance sheet sub-heading under which EACH of the five omitted items would be classified.[5 marks]
  2. 6(b)(i)Outline the MAIN difference between a performance ratio and a liquidity ratio.[3 marks]
  3. 6(b)(ii)Identify ONE stakeholder who would be interested in EACH type of ratio.[2 marks]
  4. 6(c)(i)Calculate the Current Ratio for Eastwood Hardware Ltd. and explain its implication.[5 marks]
  5. 6(c)(ii)Calculate the Acid Test Ratio for Eastwood Hardware Ltd. and explain its implication.[5 marks]

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