100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Btec business level 3 Unit 2 P7 M3 D2 £3.48   Add to cart

Lecture notes

Btec business level 3 Unit 2 P7 M3 D2

5 reviews
 1352 views  12 purchases
  • Institution
  • OCR

this document is P7 M3 abd D2 of Btec business level 3 Unit 2 and will help you achieve the requirement of pass merit and distinctionn

Preview 1 out of 4  pages

  • August 13, 2016
  • 4
  • 2015/2016
  • Lecture notes
  • Unknown
  • All classes
All documents for this subject (7)

5  reviews

review-writer-avatar

By: daisies9990 • 5 year ago

review-writer-avatar

By: claire0502 • 5 year ago

review-writer-avatar

By: luli4z • 5 year ago

review-writer-avatar

By: kylejordan12499 • 6 year ago

review-writer-avatar

By: waj • 7 year ago

avatar-seller
cjaydip95
P7, M3, D2 Unit 2


Ratio Analysis
Task 1 (P7)

Using the profit and loss account and the balance sheet for P5, help the owner of the business
interpret the results by completing the table below.



Ratio Formula Calculation/Interpretation
Liquidity
Current ratio Current assets 175
Current liabilities 110 = 1.6

Acid test Current assets – stock 175 - 125
Current liabilities 110 = 0.5

Profitability
Gross profit Gross profit 200
percentage Turnover x100 800 x100 =25%

Net profit Net profit 60
percentage Turnover x100 800 x100 =7.5%

Return on capital Net Profit Before Tax 60
employed Capital Employed x100 120 x100 =50%

Performance (efficiency)
Stock turnover Stock 125
Cost of sales x365 600 x365 =76 days

Debtors’ collection Debtors 50
period Turnover x365 800 x365 =23 days

Asset turnover Turnover 800
Net assets 65 =12.3

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

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 cjaydip95. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £3.48. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

66579 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£3.48  12x  sold
  • (5)
  Add to cart