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Monday, March 29, 2021

Business Management and Studies Financial Ratios Quiz

 

Business Management/Studies

Financial Ratios - Quiz

Financial ratios quiz


a)      ……………………………………a ratio that compares a firm’s current assets to its current liabilities.

b)      ……………………………..….calculated by dividing the gross profit   by sales revenue, expressed as a percentage.

c)       …………………………………….assesses the returns a firm is making from its capital employed.

d)      …………………………………….calculated by dividing the net profit before interest and tax ( NPBIT)  by sales revenue, expressed as a percentage.

e)      ………………………………………a ratio that subtracts stock from current assets of a  firm and compares this to its current liabilities.

f)        ……………………………………….measures on average, the number of days a firm takes to collect money from its debtors.

g)      ………………………………………measures how quickly a firm’s stock is sold and replaced over  a given period.

h)      ……………………………………………measures the extent to which the capital employed by a firm is financed from loan/external capital.

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Credit: Business Management Course Companion, by Lokie  Lomine and others, OUP.

Download quiz sheet with answers

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Thursday, March 25, 2021

Accounts and Finance Gearing Ratio worksheet

 

Accounts and Finance – Gearing Ratio

Carlos Builders Limited ( CBL)

 

Gearing ratio worksheet

Carlos Builders are specialized in commercial property development and maintenance. CBL has its registered office in Mumbai, India, and has branches in other metropolitan cities of India. The following information has been extracted from the financial statements of CBL for 2019 and 2020.

 

 

2019 ( $)

2020 ( $)

Share capital

200,000

220,000

Accumulated retained profit

20,000

28,000

Fixed assets

300,000

340,000

Current assets

58,000

60,000

Current liabilities

38,500

38,000

Long term liabilities

99,500

114,000

 Questions:

 

a)     Define the term ‘gearing ratio’.

[2 marks]

b)    Calculate the gearing ratio for CBL for 2019 and 2020.

[4 marks]

c)     Comment on the gearing ratio of CBL.

[ 2 marks]

d)    Identify and explain  two stakeholders who might be interested in the gearing ratio of CBL.

 

[ 4 marks]

Tuesday, March 23, 2021

Income Statement and Profitability Ratios workshet for IB, IGCSE, A Level Business students

 

 Finance and Accounts – Income Statement and Profitability Ratios

Incoment statement worksheet


Neskle Plc ( NP)

The following financial information is taken from the books of Neskle Plc for the year ended 31 March 2020.

Sales revenue $ 45,000

, 

Cost of goods sold $ 12,000

Promotion $ 500

 

Salaries $ 2,500

Repairs and maintenance $ 500

 

Interest $ 400

Tax $ 800

 

Dividends $ 2,000.

 Table 1

 Questions:

 

a)      Define the following terms:

·       Gross profit

·       Net profit

 

 

[4 marks]

b)      Using the  figures given in the  table 1, complete the  Income Statement for the year ending 31 March 2020 for Neskle  Plc.

 

 

[5 marks]

  

Details

$

$

Sales revenue

 

 

Less: Cost of Goods Sold

 

 

Gross Profit

 

 

Less: Expenses

 

 

Salaries

 

 

Repairs and maintenance

 

 

Promotion

 

 

Profit before interest & tax ( PBIT)

 

 

Less: Interest

 

 

Profit After Interest before tax

 

 

Less: Tax

 

 

Profit After Interest & Tax ( PAIT)

 

 

Dividends

 

 

Retained Profit

 

 

 

c)        Using your answers ( question (b), calculate  gross profit margin and net profit margin

·       Gross profit

·       Net profit

 

 

 

[4 marks]

 

Ratios

Working

Answer

Gross Profit margin

 

 

 

 

 

Net Profit Margin

 

 

 

 

 

Monday, March 22, 2021

Business Management and Business Studies Worksheet - Assets, Liabilities and Equity.

 

Business Management/Business Studies Worksheet

Topic/s: Assets, Liabilities and Equity.

IB Business Management worksheet


Vision Media Consultants (VMC)

Vision Media Consultants (VMC) was set up as a partnership firm by David and Warren. Encouraged by growth rate and increasing demand, partners decided to convert VMP to a private limited company. The majority of shares are held by David and Warren. VMC’s service includes strategic business advice on marketing and customer reach out.  VMC also undertakes outdoor advertising. The major clients include big corporates in entertainment industry, education and health. The following balances are taken from the books of VMC on 31 December 2020.

Film equipment

$ 8,000

Stock of print materials

$ 4,600

Buildings

$ 15,000

Debtors

$ 6,400

Copyright

$ 4,000

Cash

$ 8,200

Creditors

$ 2000

Bank overdraft

$ 2,800

Share capital

$ 22,000

Bank loan

$ 10,000

Retained profit

$ 6,800

Mortgage

$ 2,600

Table 1

Questions:

a)     Using the figures given in the table 1, calculate the following:

 

                    i.            Total fixed assets.

[ 2 marks]

                  ii.            Total current assets.

[ 2 marks]

                iii.            Total current liabilities.

[ 2 marks]

                iv.            Total long term liabilities.

[ 2 marks]

                  v.            Total equity.

[ 2 marks]