Business Finance – Ratio Analysis Practice Exam
Answer all questions. Show your workings clearly. Calculators may be used.
1. Revenue = $500,000 and Gross Profit = $220,000. Calculate the Gross Profit Margin.
2. Revenue = $900,000 and Gross Profit = $360,000. Calculate the Gross Profit Margin.
3. Revenue = $1,200,000 and Gross Profit = $480,000. Calculate the Gross Profit Margin.
4. Revenue = $750,000 and Operating Profit = $150,000. Calculate the Operating Profit Margin.
5. Revenue = $2,000,000 and Operating Profit = $400,000. Calculate the Operating Profit Margin.
6. Revenue = $640,000 and Operating Profit = $64,000. Calculate the Operating Profit Margin.
7. Cost of item = $120, selling price = $150. Calculate the Mark-up %.
8. Cost of service = $8,000, selling price = $10,000. Calculate the Mark-up %.
9. A product costs $45 to make and sells for $54. Calculate the Mark-up %.
10. Current Assets = $240,000, Current Liabilities = $150,000. Calculate the Current Ratio.
11. Current Assets = $500,000, Current Liabilities = $400,000. Calculate the Current Ratio.
12. Current Assets = $120,000, Current Liabilities = $80,000. Calculate the Current Ratio.
13. Current Assets = $200,000, Inventories = $70,000, Current Liabilities = $100,000. Calculate the
Acid Test Ratio.
14. Current Assets = $450,000, Inventories = $250,000, Current Liabilities = $300,000. Calculate
the Acid Test Ratio.
15. Current Assets = $600,000, Inventories = $100,000, Current Liabilities = $250,000. Calculate
the Acid Test Ratio.
16. Operating Profit = $120,000, Capital Employed = $600,000. Calculate ROCE.
17. Operating Profit = $500,000, Capital Employed = $2,500,000. Calculate ROCE.
18. Operating Profit = $800,000, Capital Employed = $3,200,000. Calculate ROCE.
19. Revenue = $400,000, Gross Profit = $100,000, Operating Profit = $50,000. Calculate Gross
Profit Margin and Operating Profit Margin.
20. Current Assets = $350,000 (including Inventories $150,000), Current Liabilities = $200,000.
Calculate the Current Ratio and Acid Test Ratio.
21. Revenue = $1,000,000, Gross Profit = $400,000, Operating Profit = $250,000, Capital
Employed = $1,500,000. Calculate Gross Profit Margin, Operating Profit Margin, and ROCE.
22. Revenue = $2,500,000, Gross Profit = $1,000,000, Operating Profit = $600,000. Calculate both
profitability ratios.
23. A company has Current Assets = $950,000, Inventories = $400,000, Current Liabilities =
$700,000. Calculate the Current Ratio and Acid Test Ratio.
24. Operating Profit = $900,000, Capital Employed = $4,000,000. Calculate ROCE.
25. A product costs $320,000 to produce and sells for $400,000. Calculate the Mark-up %.
