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Pre-Session Handout

The document provides a series of practice questions related to personal and business finance topics including: 1) Break even and profit calculations for a flower supply contract. 2) Margin of safety and break even point calculations using cost and revenue information. 3) Unit contribution and total cost calculations from extract financial information. 4) Completing statements of financial position by calculating asset values, receivables, and net current assets/liabilities. 5) Completing statements of comprehensive income by entering depreciation and wage figures. 6) Completing a cash flow forecast by filling in cash inflow and outflow amounts for a six month period.

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Navdeep Singh
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449 views

Pre-Session Handout

The document provides a series of practice questions related to personal and business finance topics including: 1) Break even and profit calculations for a flower supply contract. 2) Margin of safety and break even point calculations using cost and revenue information. 3) Unit contribution and total cost calculations from extract financial information. 4) Completing statements of financial position by calculating asset values, receivables, and net current assets/liabilities. 5) Completing statements of comprehensive income by entering depreciation and wage figures. 6) Completing a cash flow forecast by filling in cash inflow and outflow amounts for a six month period.

Uploaded by

Navdeep Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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UNIT 3 – PERSONAL AND BUSINESS

FINANCE
Calculative Questions (Learning Aim E & F) Revision

Before the Session


Read and attempt ALL questions!!

During the Session:


We will walkthrough the solutions to the questions
and check your answers.

At the end:
You can ask, questions if any.

MAY 17, 2023


5PM – 6PM
Learning Aim E – Break Even and Cash Flow Forecasts Questions
Q1. Ruksana runs a flower shop called Silva. She has given you the following financial information.
Ruksana has been offered a contract to supply flowers to a local business. The contract is worth £5 000 in
revenue. She must supply 800 bunches of flowers which will cost her £3 600.

She will have to pay an additional £600 in fixed costs.


Calculate the amount of profit the order will be worth. (3)

Q2.

(a) Calculate the margin of safety. (Show your workings) (4)

£ ...........................................................

(b) Calculate how many months it will take to reach the break-even point. (Show your workings)
(2)

.........................................................
..
Q3.

Extract of financial information for To the Max.

Figure 1
(a) Using the above information, calculate:

(i) the contribution per unit

(2)
Show your workings

£ ...........................................................
(ii) the total costs

(3)
Show your workings

£ ...........................................................
Learning Aim F – Financial Statements
Q4. Wendy runs a flower shop called Silva. She has given you the following financial information. It is
incomplete, so she has asked you to complete it for her.
Complete the Extract from the Statement of Financial Position for Silva by calculating:

(i) vehicle cost

(ii) equipment depreciation

(iii) total net book value

(iv) trade receivables

(v) net current assets / liabilities.

(5)
Q5. Jisoo runs a business called The Circle that sells redesigned and recycled retro clothing both online
and through a small shop. She buys clothing in bulk by weight.

Jisoo has two sewing machines that originally cost a total of £3 250 when she purchased them on 1
January 2021.

She has decided to depreciate all of her non-current assets by 10% using the reducing balance method.

By doing more of the alterations work herself Jisoo has reduced her wage bill by £3000 in 2022.

She has given you the following two incomplete extracts from the last two statements of comprehensive
income.

Complete the statement of comprehensive income for The Circle


Q.6. Ruby owns a business called Training Treats. Her business makes and sells high quality pet treats
suitable for all breeds of cat and dog.

All of Training Treats credit sales are for 30 days’ credit.

Ruby has produced a Cash Flow Forecast.

Complete the Cash Flow Forecast for the six months ending 31 December 2023.

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