Financial Statements

Worked examples (6)

• 1Calculate gross profit (2 marks)
• 2Build a statement of profit or loss (4 marks)
• 3Calculate retained earnings (5 marks)
• 4Amend the statement after a cost rise (5 marks)
• 5Analyse the impact of a price rise (8 marks)
• 6Explain why profit is not the same as cash (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 / Paper 4 style
• ✓Model answer — 9609 Paper 4 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 4 style

Worked examples (6)

• 1Classify items on the statement of financial position (4 marks)
• 2Calculate net current assets (2 marks)
• 3Calculate net assets and find missing reserves (5 marks)
• 4Amend the statement after transactions (5 marks)
• 5Show how the Pu0026L links to the statement of financial position (8 marks)
• 6Analyse what the statement reveals about financial position (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 / Paper 4 style
• ✓Model answer — 9609 Paper 4 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 4 style

Worked examples (6)

• 1Calculate net realisable value (2 marks)
• 2Apply the lower of cost and NRV (3 marks)
• 3Value a mixed inventory using the lower-of rule (5 marks)
• 4Show the impact of an inventory write-down on profit (5 marks)
• 5Analyse the difficulties of valuing inventory (8 marks)
• 6Analyse why correct inventory valuation matters (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 / Paper 4 style
• ✓Model answer — 9609 Paper 4 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 4 style

Worked examples (6)

• 1Calculate straight-line depreciation (3 marks)
• 2Calculate book value after depreciation (3 marks)
• 3Show the impact of depreciation on profit (5 marks)
• 4Show the impact on both financial statements (5 marks)
• 5Analyse how depreciation affects reported profit (8 marks)
• 6Explain why depreciation does not affect cash (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 3 / Paper 4 style
• ✓Model answer — 9609 Paper 4 style
• ✓Model answer — 9609 Paper 3 style
• ✓Model answer — 9609 Paper 4 style