This is BTEC Level 3 Business Diploma Unit 2 Unit 5 - P5. The BTEC has combined Unit 2 and Unit 5 as they've similar topics and hence we have one P5 for two units. I can assure you that this work will get you an easy pass as I got it too! Good luck xx
Unit 5 P5: You are required to perform ratio analysis to measure the profitability, liquidity and efficiency for JUTE FASHIONS LTD for the
year 2019. Unit 2 P7 illustrate the financial state of JUTE FASHIONS LTD.
NB: You will need the profit and loss account and the balance sheet you prepared in P4 to help you
Ratio Calculations for JUTE FASHIONS LTD.
Answer (rounded) to 2
Ratios Formulae Show Working decimal places
Profitability
Gross Profit Percentage Gross Profit x 100 285,000 x 100 81.43%
Sales Turnover 350,000
Net profit Percentage Net Profit x 100 58,000 x 100 16.71%
Sales Turnover 350,000
Return Capital Employed
Return on capital employed Net Profit x 100 58,500 x 100 0.10%
(ROCE)% where capital Capital employed 58,015,000
employed = Capital + Long-term
liabilities
1 Unit 2: Business Resources/ Business Accounting Task 3 Basic Ratios
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