Using the data in Extract B, calculate the difference in Morrisons’ acid test ratio between 2014 and 2015 - Edexcel - A-Level Business - Question 1 - 2017 - Paper 2

Now, we calculate the acid test ratio for 2015:

Using the same formula:

$\text{Current Assets} = 1138 \text{ (£m)}$ $\text{Inventory} = 658 \text{ (£m)}$ $\text{Current Liabilities} = 2273 \text{ (£m)}$

Calculating:

$\text{Acid Test Ratio for 2015} = \frac{1138 - 658}{2273} = \frac{480}{2273} \approx 0.21:1$

To find the difference between the acid test ratios for 2015 and 2014:

$\text{Difference} = 0.21 - 0.20 = 0.01$

Thus, the difference in Morrisons’ acid test ratio between 2014 and 2015 is 0.01.