A company’s vertical analysis of the income statement shows that COGS is consistently 60% of net sales, but horizontal analysis shows that COGS increased by 25% this year while net sales only increased by 10%. What does this likely indicate?

Which combination of indicators most strongly suggests that a company is overtrading?

A company's dividend cover has fallen from 4.0 to 1.5 over two years. Which of the following best describes this trend?

A company reduces its receivables collection period by 20 days without affecting sales. Which of the following is the most direct result?

Which of the following best explains why analysts often compare ROCE with the company’s cost of capital?

Companies are different to other business structures in that they are separate legal entities.

A new business starts with a loan of £5,000. On day 1, £500 of inventory is purchased. By day 7 a further £1,000 of inventory has been sold. 

What is the total amount of liabilities at day 7? Assume no other transactions.

Carlisle has the following inventory movements during May.