O-LevelAccountingAnalysis and interpretation7707/21 · May/June 2019 · Q420 Marks

Celia is in business buying and selling goods on credit. The following information is available: At 1 May 2018 Inventory $17500 For the year ended 30 April 2019 Cost of sales $350 000 Percentage of gross profit to sales revenue is 30% At 30 April 2019 Inventory $22500 Trade payables $90000 Trade receivables $85000 Bank overdraft $20000 REQUIRED

(a)Calculate the following on 30 April 2019. The previous year's figures are shown in the last column. Revenue for the year Rate of turnover of inventory (to one decimal place) Current ratio (working capital ratio) (to two decimal places) Quick ratio (acid test ratio) (to two decimal places)[8]
(b)Comment on the changes in Celia's business which have occurred between 30 April 2018 and 30 April 2019.[6]
(c)Calculate the following: Receipts from trade receivables in May 2019 Payments made to trade payables in May 2019 Bank balance at 31 May 2019[6]

Write your answer and get it marked

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.

Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Structured question, 20 marks.
Source: O-Level Accounting, May/June 2019 Paper 2 Variant 1, question 4.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content