Business

1. 1.

   Fictional case: a wholesaler records a credit sale today but receives cash next month. Explain why profit and cash flow can differ this month.

   [2 marks] · no calculator
2. 2.

   Fictional case: opening cash is 8000, receipts 22000 and payments 27000. Calculate net cash flow and closing cash.

   [2 marks]
3. 3.

   Fictional case: current assets are 150000, including inventory of 60000; current liabilities are 75000. Calculate current and acid-test ratios, excluding only inventory for the acid test. Explain one limitation of the current ratio.

   [4 marks]
4. 4.

   Fictional case: revenue is 500000, cost of sales 300000, operating expenses 120000 and capital employed 400000. Calculate gross profit margin, operating profit margin and ROCE using operating profit; explain why comparison needs context.

   [4 marks]
5. 5.

   Fictional case: a fast-growing profitable wholesaler faces late customer payments and expanding inventories. Evaluate factoring receivables rather than a long-term bank loan to relieve cash pressure.

   [4 marks] · no calculator
6. 6.

   Fictional case: a retailer improves its current ratio by borrowing long-term cash and holding it unused. Evaluate the claim that its underlying operating performance has therefore improved.

   [4 marks] · no calculator

Original, unofficial practice questions from SubjectScout — not official past-paper questions.