Business Studies · May / June 2019 · Paper 12 · Question 3

REW has won many awards for the design and style of its carpets and rugs. All the wool it uses is from local suppliers. REW’s objective for this year is to survive and remain in business. The Managing Director is concerned that the country’s Gross Domestic Product has been falling for some time. During the recession the Managing Director plans to start selling REW’s products in other countries. Market research suggests demand would be high. Table 2: Extract from REW’s accounts 2017 2018 Current ratio 1.5 2 Acid test ratio 1.2:1 1:1 Profit margin 20% 16%

Read automatically from the paper; the printed page above is exact.