Question 1: A company has sales revenue of £50,000 and total expenses of £30,000. Calculate the company's profit for the period.

Answer: Profit = Sales Revenue – Expenses = £50,000 – £30,000 = £20,000

Question 2: A business has an initial investment of £10,000. If the business earns a profit of £2,500 each month, how many months will it take to recover the initial investment?

Answer: Number of months = Initial Investment ÷ Monthly Profit = £10,000 ÷ £2,500 = 4 months

Question 3: Calculate the gross profit margin if a company has sales of £80,000 and cost of goods sold of £50,000.

Answer: Gross Profit = Sales – Cost of Goods Sold = £80,000 – £50,000 = £30,000 Gross Profit Margin = (Gross Profit ÷ Sales) × 100 = (£30,000 ÷ £80,000) × 100 = 37.5%

Question 4: A business has total assets worth £120,000 and liabilities of £45,000. Calculate the owner's equity in the business.

Answer: Owner's Equity = Total Assets – Liabilities = £120,000 – £45,000 = £75,000

Question 5: If a company's sales increase from £60,000 to £75,000, what is the percentage increase in sales?

Answer: Percentage Increase = [(New Sales – Old Sales) ÷ Old Sales] × 100 = [(£75,000 – £60,000) ÷ £60,000] × 100 = 25%

Question 6: A business has a monthly rent expense of £1,200. If it wants to save £14,400 in a year for future investment, how much should it save each month?

Answer: Monthly Saving = Total Annual Saving ÷ 12 months = £14,400 ÷ 12 = £1,200

Question 7: Sketch a bar chart to compare the sales figures of four different products: Product A (£20,000), Product B (£35,000), Product C (£25,000), and Product D (£15,000).

Answer: A bar chart with four bars, each representing a product. The height of each bar corresponds proportionally to the sales figure: Product B highest, followed by Product C, then Product A, and Product D lowest.

Question 8: A business wants to increase its profit margin from 10% to 15%. If its current sales are £100,000, what is the new target profit?

Answer: Current profit at 10% = 10% of £100,000 = £10,000 Target profit at 15% = 15% of £100,000 = £15,000

Question 9: A company plans to purchase new equipment costing £8,000. If the equipment is expected to generate additional annual profit of £2,000, how many years will it take to recover the cost?

Answer: Years to recover cost = Cost of Equipment ÷ Additional Annual Profit = £8,000 ÷ £2,000 = 4 years

Question 10: Calculate the net profit margin if a business has a net profit of £12,000 and sales revenue of £150,000.

Answer: Net Profit Margin = (Net Profit ÷ Sales Revenue) × 100 = (£12,000 ÷ £150,000) × 100 = 8%