Task:
Part A
1. Identify the meaning of each ratio and describe the factors which impact each ratio
3. Two reasons for the change in each ratio are correctly identified
4. Two changes to business practices which would improve or further improve the ratio correctly identified
Appropriate recommendations provided regarding the record keeping and internal controls of the business
Part C
• Two significant business issues are correctly identified
• Appropriate recommendations provided to address the identified business issues and ensure the financial viability of the business
1. Calculate the ratios for 30.6.20 & 30.6.21
2. Write one short paragraph on the meaning each ratio and the factors which affect the ratios for this business.
3. Detail whether each ratio improved or deteriorated compared to the prior year (one sentence)
What improvements would you recommend regarding the record keeping and internal controls of the business (think about the accounting system and systems and controls that could be put in place to address these concerns). Think about your responses in Part (A). Write two paragraphs.
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