CSEC Principles of Accounts Paper 3 May/June 2008 - Free CXC Past Paper with Answers

Using the reports provided by students A, B and C, as well as the relevant information from the opening balances, prepare the Income Statement (Trading and Profit and Loss Account) for St. Paul's High School Cafeteria for the period ending August 31, 2007.

Calculate the following ratios, showing formulae used and workings:

Identify ONE method of stock valuation that Student C can use to arrive at ending stock.

Using the above report from Student D, calculate the working capital of the business. (Show workings).

How was the Net Profit calculated?

In which financial statement, other than the Trading Account, would ending stock appear?

Why is the electricity expense so much more than the other expenses?

What does the gross profit margin indicate about a business?

What does the stock turnover ratio indicate about a business?

What is meant by 'a good working capital ratio'?