3.5. Analysis and communication of accounting information
A subsection of Accounting, 9706, through 3. Financial accounting (A Level)
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Examiner's Use The following balances occur in Delboi’s books of account at 30 September 2006. $000 Purchases Sales Stock at 1 October 2005 Fixed assets Debtors Creditors Bank 15 Long-term loan from bank at 10% per annum Loan interest paid Operating costs Drawings Capital ? Additional information: Stock at 30 September 2006 was valued at $12 000. From the above information the following trading and profit and loss account has been prepared. Trading and Profit and Loss Account for year ended 30 September 2006 $000 $000 Sales Less cost of sales Opening stock Purchases Closing stock Gross profit Operating costs Loan interest Net Profit For Examiner's Use REQUIRED Prepare Delboi’s Balance Sheet at 30 September 2006, showing his net current assets. Calculate the following to two decimal places. Net profit ratio For Examiner's Use Current ratio Acid test ratio Rate of Stockturn Return on owner’s capital employed Return on total capital employed Debtors’ collection period in days Creditors’ payment period in days For Examiner's Use Delboi’s gross profit ratio for the year ended 30 September 2006 is 30.83 %, but has in previous years been constant at 35 %. He discovers that his new assistant, Rodders, is stealing goods. REQUIRED Calculate, at cost price, the value of goods that Rodders is stealing. REQUIRED State and explain one advantage and one disadvantage of using ratio analysis as a means of evaluating performance. Advantage Disadvantage
9706_w06_qp_2
THEORY
2006
Paper 2, Variant 0
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Questions Discovered
54