Section B 

Key Topics and example questions

E1 Cash Flow 

Advantages and disadvantages of using Cash Flow Forecasts

Introduction to Cash Flow forecasts

Improving Cash Flow 

E2 Break Even Analysis

Break Even Contribution Method Calculations Video

Rearranging formulae  - Extension work 

Break Even Graph Video 

Margin of Safety and Benefits/Drawback of Break-Even Analysis Video 

Break Even Essential Revision 

Improving Profit 

Calculate variable cost and Margin of Safety

Calculate Contribution 

F1 Profit and Loss Account (statement of comprehensive income or income statement)

Calculate Gross Profit

F2 Balance Sheet (statement of financial position) 

Complete a statement of financial position

F3 Measuring profitability 

Mark up %

Profit margin %

Return on capital employed (ROCE)

Calculate Gross Profit from Table 

Calculate Gross Profit Margin 

F4 Measuring liquidity

Current Ratio

Liquid Capital ratio

F5 Measuring Efficiency 

Inventory turnover ratio

Calculate Trade Payable and receivable days 

Sources of Finance

Improving Profit v Selling Assets