Assessmenttask 2 – Financial business performance analysis and calculations Did the learner demonstrate: 1. financial performance calculation (recommendation, formula and calculation required each) Liquidity Ratio a) Current ratio b) Acid-test (quick) ratio c) Working capital Activity Ratio a) Inventory turnover b) Asset turnover c) Days’ sales in receivables Profitability Ratio a) Rate of return on total assets b) Gross profit c) rate of return on sales Leverage Ratio a) Debt to equity b) Times-interest-earned ratio c) Total debt to total assets Equity Valuation and Performance Ratio a) earnings per share b) price/earnings ratio c) dividend yield d) book value per ordinary share e) rate of return on ordinary shareholders’ equity

Marking and Criteria guide: Assessor and student must read this carefully before assessment. A 75% demonstrated competence in the answers is the benchmark only and students & assessors must note that professionally critical aspects/concepts must be included (e.g. cost –benefit analysis and use of performance ratios or comparison techniques, the key principles valuation and capital budgeting analysis and investment analysis, trends and quantify the business). All parts (criteria) in the marking guide must be completed successfully for the student to achieve competence in this unit. EDUCATOR to complete Observation/assessment Satisfactory/not Satisfactory (If resubmission required) Satisfactory/not Satisfactory Comments Pre-assessment work completed All assessments, tasks & activities (on Moodle®) successfully

Evidence of the ability to: • analyse trends in business performance using standard accounting techniques • develop performance indicators and identify options for improvement • monitor performance indicators and document options for improvement • establish organisational objectives, policy and procedures. Note: If a specific volume or frequency is not stated, then evidence must be provided at least once. Knowledge Evidence To complete the unit requirements safely and effectively, the individual must: • discuss ethical considerations relating to conflict of interest, confidentiality and disclosure requirements • identify the key principles and methods of: • valuation • capital budgeting analysis and investment analysis • cost –benefit analysis and use of performance ratios or comparison techniques.