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8 marksFinancial Statement Analysis and Interpretation

CAPE Accounting Unit 1 · 2009 · Paper 2 · Question 3(b)(ii)

Financial ratios for Cheryl's Salon for 2007 and 2008 along with industry averages are provided.

Discuss the performance of Cheryl's Salon over 2007 and 2008 in terms of liquidity and profitability using the industry averages as benchmarks.

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Other parts of this question

  1. 3(a)Prepare a Statement of Cash Flows for 2008 showing clearly cash flows from operating activities, investing activities and financing activities.[23 marks]
  2. 3(b)(i)State TWO uses and TWO limitations of financial ratios.[4 marks]

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