Financial Statements - Interpretation

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Grade 12


GRADE 11 - Partnerships: analysis and interpretation

Grade 10 -  Financial Accounting of a sole trader - preparation of financial statements



Analysis and interpretation of financial statements and notes

Revision of the following:

  • gross profit on sales
  • gross profit on cost of sales
  • net profit on sales
  • operating expenses on sales
  • operating profit on sales
  • solvency ratio
  • current ratio
  • acid test ratio

Introduction to and covering of the following:

  • stock turnover rate
  • stock holding period
  • average debtors’ collection period
  • average creditors’ payment period
  • debt-equity ratio (gearing)
  • partners’ earnings
  • return on partners’ equity

Analysis and interpretation of financial statements and notes:

  • gross profit on sales
  • gross profit on cost of sales
  • net profit on sales
  • operating expenses on sales
  • operating profit on sales
  • current ratio
  • acid test ratio
  • solvency ratio
  • return on equity













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