Answers
BTEC Level 3 Business Unit 2- Business Resources P7
- Course
- Institution
BTEC Level 3 Business Unit 2- Business Resources P7
[Show more]
1 review
By: calistedinalyn • 4 year ago
Seller
Follow
TheInvigilators
Reviews received
Content preview
Jahed AhmedBMC000010360
P7 - Domestic Dog Homes Ratios
There are three types of ratios: performance, solvency and
profitability.
The current ratio compares the amount of assets in relation to
liabilities and it is a solvency ratio. This is worked out by:
Current assets l £40,275 = 2.46 =
2.5
Current liabilities £16,367
Therefore, this means that it would be better if Domestic Dog
Homes invested their money somewhere else because they
have more than enough money to keep themselves running.
The acid test ratio is done using the following formula which is
a solvency ratio.
Current assets – Stock £40,275 - £16,300
= 1.46
Current Liabilities £16,367
This shows how simple it would be to pay off debts without
having to sell stock. 1.46 would get rounded up to 1.5 which
means that they are in a good position.
The gross profit percentage shows how well the organisation
manages its stock purchases; a high number means that the
business is doing well and is controlling its costs.
Gross profit x 100 £102,250 x 100 =
238.62%
Turnover £42,850
This shows that they are doing very well and they have a high
percentage of turnovers.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheInvigilators. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now