Edexcel A Level Business Unit 2.3 Managing Finance 3 lesson BUNDLE

2.3.1
Profit
a) Calculation of:
o gross profit
o operating profit
o profit for the year (net profit)
b) Statement of comprehensive income (profit and loss
account):
o measuring profitability:

• calculation of gross profit margin, operating profit
  margin, and profit for the year (net profit) margin
  o ways to improve profitability
  c) Distinction between profit and cash
  2.3.2
  Liquidity
  a) Statement of financial position (balance sheet):
  o measuring liquidity:
• calculating current ratio and acid test ratio
  o ways to improve liquidity
  b) Working capital and its management: the importance of
  cash
  2.3.3
  Business failure
  a) Internal and external causes of business failure:
  o financial factors
  o non-financial factors