Assessment Schedule 2010 Accounting: Analyse and interpret information for a sole proprietor(s) (90028)

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1 NCE Level 1 ccounting (90028) 2010 page 1 of 6 ssessment Schedule 2010 ccounting: nalyse and interpret infmation f a sole propriet(s) (90028) Evidence Statement ONE (a) nalysis Measure Mark-up % 150% Gross profit % 75% % Change in sales 6.3% Note: ccept 6.25% f % change in sales, must have negative indicated (could use brackets). (b) n interpret answer will explain using the elements of the fmula with no specific reference to 60% ( 60 cents) The percentage of sales (percentage / cents of each sales $) that is gross profit / every dollar of sales the amount that is gross profit fully interpret answer will explain using context in their answer giving specific reference to the meaning of 60% ND Sophie s Sweet Ste / Sophie 60% of sales from Sophie s Sweet Ste (60 cents in every dollar of sales) is gross profit (befe allowing f operating expenses in the period). (c) n interpret answer will describe using elements of the fmula the amount added to the cost of goods to get the selling price OR an example given, eg Sweets that cost $1 would be sold f $4 fully interpret answer will explain using a context to the answer giving specific reference to the meaning of adding 300% of the cost price to get the selling price ND Sophie s Sweet Ste / Sophie Sophie s Sweet Ste adds 300% of the cost price onto the cost of the goods / inventy befe they are sold calculated. n example given, eg Sweets that cost Sophie s Sweet Ste $1 would be sold by Sophie s Sweet Ste f $4. (d) n interpret answer will give a reason f the trend There has been an increase in the cost of goods sold / there has been a (deliberate) decrease in the mark-up / selling price / me discount sales / there has been some loss of inventy fully interpret answer will refer to Sophie s Sweet Ste /Sophie and explain the reason f the trend Sophie s Sweet Ste decreased their mark-up, which decreased their gross profit decreasing gross profit percentage. Sophie s Sweet Ste had increased cost of goods sold /(rising supplier prices loss of inventy), which has decreased the gross profit decreasing gross profit percentage.

2 NCE Level 1 ccounting (90028) 2010 page 2 of 6 ONE (e) n interpret answer will make a recommendation Decrease their mark-up Change to a cheaper supplier ncrease advertising Change the sales mix fully interpret answer will refer to Sophie s Sweet Ste / Sophie and justify a recommendation Sophie s Sweet Ste could decrease their mark-up, decreasing their selling price and increasing their sales. Sophie s Sweet Ste could change to a cheaper supplier, decreasing their selling price and increasing their sales. Sophie s Sweet Ste could increase their spending on advertising, which encourages me customers and increases sales. Judgement Statement Question One chievement chievement with Merit chievement with Excellence 4 grades including 1 and 1 / 5 grades including 1, 1 and 1 6 grades including 1 and 2

3 NCE Level 1 ccounting (90028) 2010 page 3 of 6 TWO (a) nalysis Measure Distribution costs % 27% 20% inance costs % 2% 10% Net profit % 35% 25% (b) n interpret answer will explain using the elements of the fmula with no specific reference to 35% ( 35 cents) The percentage of sales (percentage / cents of each sales $) that is net profit / every dollar of sales, the amount that is net profit / Profit f the year fully interpret answer will explain using context in their answer giving specific reference to the meaning of 35% ND Sophie s Sweet Ste / Sophie. 35% of sales from Sophie s Sweet Ste (35 cents in every dollar of sales) is net profit / remains in the business as profit after all expenses have been paid. (c) n interpret answer will give a reason f the trend Eg There has been an increase in the interest rate / there has been an increase in browings (loan mtgage). fully interpret answer will refer to Sophie s Sweet Ste / Sophie and fully explain a reason f the trend Sophie s Sweet Ste increased their browings which increased their interest expense / finance costs, increasing finance cost percentage There has been an increase in the interest rate, which has increased the interest expense / finance costs, increasing finance cost percentage f Sophie s Sweet Ste.

4 NCE Level 1 ccounting (90028) 2010 page 4 of 6 TWO (d) n interpret answer will give a reason f the trend Eg There has been a decrease in advertising ( any relevant example of a distribution cost / accept sales wages but NOT wages). fully interpret answer will refer to Sophie s Sweet Ste / Sophie and fully explain a reason f the trend Sophie s Sweet Ste decreased their advertising ( any relevant distribution cost but not wages), which decreased their distribution costs decreasing distribution cost percentage. (e) n interpret answer will make a recommendation Eg She could decrease their expenses / change to a cheaper supplier / increase their mark-up. fully interpret answer will justify a recommendation Sophie s Sweet Ste could spending less on telephone ( any relevant expense eg pay off their loan to decrease interest) decreasing their expenses and increasing their net profit / net profit percentage. Sophie s Sweet Ste could change to a cheaper supplier, cost of goods sold will decrease/gross profit will increase, increasing their net profit / net profit percentage. Sophie s Sweet Ste could increase their mark-up, gross profit could increase, increasing their net profit / net profit percentage. Judgement Statement Question Two chievement chievement with Merit chievement with Excellence 4 grades including 1 and 1 / 5 grades including 1,1 and 1 6 grades including 1 and 2

5 NCE Level 1 ccounting (90028) 2010 page 5 of 6 THREE (a) 2010 Current ratio 2:1 Liquid ratio 1.5:1 Equity ratio 0.2:1 (b) n interpret level answer will explain using the elements of the fmula Eg She has enough current assets to cover her current liabilities She has $2.60 of current assets to meet every $1 of current liabilities fully interpret level answer will apply the 2.6:1 and use the context Eg Sophie s Sweet Ste/Sophie has $2.60 of current assets to meet every $1 of their current debt with which means that they do have / should have the ability to meet the current debts (c) n interpret level answer will suggest a change in a component of the ratio Eg The owner / withdrew cash from the business / paid back a long term loan / purchased property plant and equipment f cash ( on sht term credit) / Purchase inventy on credit. fully interpret level will refer to Sophie Sophie s Sweet Ste and will include the result of the transaction. ccept liquid / quick immediate assets Sophie withdrew cash from the business, which decreases bank / decreasing immediate assets and liquid ratio. Sophie s Sweet Ste paid back a long-term loan, which decreases bank / decreasing immediate assets and liquid ratio. Sophie s Sweet Ste purchased property plant and equipment f cash, which decreases bank / decreasing immediate assets and liquid ratio ( on credit increasing immediate liabilities and decreasing liquid ratio). (d) n interpret level answer will explain using the elements of the fmula Eg The percentage / proption of assets contributed by the owner fully interpret level answer will apply the 0.3:1 and use the context Eg f every $1 of assets, Sophie has contributed 30 cents, meaning she has funded less of the business assets than the outsiders Note: Do not accept controls owns. (e) n interpret answer will make a recommendation Eg She could invest me cash / could invest property, plant equipment / She pays back a loan / ncrease in profit (Not decrease in drawings) fully interpret answer will refer to Sophie Sophie s Sweet Ste and justify a recommendation Sophie could invest me cash (into the business), which would increase bank / equity, increasing the equity ratio. Sophie could invest (property, plant equipment) into the business, which would increase equity increasing the equity ratio. Sophie s Sweet Ste pays off a loan, which reduces the liabilities and increases the equity ratio.

6 NCE Level 1 ccounting (90028) 2010 page 6 of 6 Judgement Statement Question Three chievement chievement with Merit chievement with Excellence 4 grades including 1 and 1 / 5 grades including 1 1 and 1 6 grades including 1 and 2 Overall Judgement Statement chievement chievement with Merit chievement with Excellence 2 2 M and 1 3 E

Name: Class: Date: d d. 3.03

Name: Class: Date: d d. 3.03 Name: Class: Date: ID: A Chapter 6 - Percents Multiple Choice Identify the choice that best completes the statement answers the question. 1. Write 54% as a fraction in simplest fm. a. 1 27 50 c. b. 50