DP Business Management Questionbank

Calculate the acid test (quick) ratio for VT for 2018.

Explain one way VT could improve its liquidity.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Calculate the gross profit margin of AFA for 2016 and 2017.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Explain one possible reason for the trend in gross profit margin for AFA between 2016 and 2017.

Calculate the net profit margins for DH for 2016 and 2017.

Using information from Table 1 calculate the current ratio for Papel for the end of October 2018.

Explain one possible strategy, other than elimination of credit sales, for Papel to improve its liquidity position.

Calculate the difference in AI’s net profit before interest and tax between 2018 and 2019 (show all your working).

Using the information provided and in Table 1, calculate the gross profit margin (no working required).

Explain one strategy that Enjuice could use to increase its gross profit margin.

Based on a target of 160 000 for the first year of production at Detox, calculate the net profit margin of Detox.

Using the financial information in Table 1, evaluate two strategies that CM could use to improve its financial position other than changing to a just-in-time (JIT) stock control method.

Explain the potential impact on MV’s gross profit margin if the prices charged by its suppliers increase in the second half of 2021.

Using Table 2, calculate the current ratio for 2019 (no working required).

Calculate, for 2019, NS 507’s gross profit margin (no working required).

Recommend whether Henri should choose Option 1 or Option 2.

Using Table 1 calculate the current ratio for SF for 2020 (show all your working).

Explain two factors that might prevent TZ from increasing its gross profit margin.