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Accounts P3 doubts here

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cs:
June 2002 question 24

Dasith:

--- Quote from: cs on November 12, 2011, 02:45:35 am ---June 2002 question 24



--- End quote ---
which paper ? , & is it edexcel or cambridge ?

cs:
Cambridge

June 2007 Q13
November 2004 Q14 as well :) tyvm

Dasith:
2002 Question 24(may)

IT's like this They expect 12000 units to be sold with a decrease in finished goods of 1000 units , which would mean:
They would produce 11000 units & take the remaining 1000 from stocks.
To produce 11000 units they would require raw-materials = 11000 x 3 = 33000 kg
Then their Raw-material-stocks are expected to rise by                    =   2000 kg
For a production of 11000 units + 2000kg rise in rawmaterial stocks
They require purchases of                                                          =35000 kg


2007 Question 13(may)

Gearing is basically "burrowing/net-assets", the definition of gearing & formulas may vary slightly though , but if u take it as "burrowing/net assets"
IF assets decrease(depreciation) , net assets decrease so gearing rises..

2004 question 14(nov)

Return on capital employed = Return(profit) / (Equity + long term debts or debts > 1 year )

convertible loan stock is a just a loan which allows the lender to convert them to shares @ a given date/ dates

IF loan stock is issued , Gearing ratio increases As borrowings increases.
& Return on capital employed decreases As long term debt increases.




cs:

--- Quote from: Dasith on November 13, 2011, 05:40:28 am ---2002 Question 24(may)

IT's like this They expect 12000 units to be sold with a decrease in finished goods of 1000 units , which would mean:
They would produce 11000 units & take the remaining 1000 from stocks.
To produce 11000 units they would require raw-materials = 11000 x 3 = 33000 kg
Then their Raw-material-stocks are expected to rise by                    =   2000 kg
For a production of 11000 units + 2000kg rise in rawmaterial stocks
They require purchases of                                                          =35000 kg


2007 Question 13(may)

Gearing is basically "burrowing/net-assets", the definition of gearing & formulas may vary slightly though , but if u take it as "burrowing/net assets"
IF assets decrease(depreciation) , net assets decrease so gearing rises..

2004 question 14(nov)

Return on capital employed = Return(profit) / (Equity + long term debts or debts > 1 year )

convertible loan stock is a just a loan which allows the lender to convert them to shares @ a given date/ dates

IF loan stock is issued , Gearing ratio increases As borrowings increases.
& Return on capital employed decreases As long term debt increases.






--- End quote ---

thank you, may i know the formula of return on capital employed? does it involve long term debt?

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