BUS 4, Next Thursday!!

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Reply 20

BigDog04

love2learn

I've done every past paper :smile:

thanks !!! ALl of them -im hoping to be done by wed but even that's very optimistic!!

Reply 21

Kev98

For some reason im really worried about this exam and the Accounting one. I just totally dont have a clue

Reply 22

BigDog04

PoseidonX

Ok here we go, Credit & Thanks goes to monkiwrensh and love2learn for additional formulae. If anything else needs to be added or changed please tell me and I will add or change accordingly etc:

That formatting took me ages!

Hope this helps!

People, can we check the accuracy of the ratios.

Gearing should be Loans/Equity not the other way round.

Reply 23

Aplin

I been looking over the papers and the amount of ratios you guys are trying to learn is far to many... Look over some past papers, you will see what I mean. There is only 1 or 2 per paper >.>

Reply 24

BigDog04

How do you calculate NPV and ARR? I tried doing Bus 4 June 02 q2 to no avail. Any help appreciaated (AQA)

Reply 25

love2learn

Poseidon somethingorother

Your ROCE is OK but if you write it as being over capital employed it's easier because it's the bottom figure on the balance sheet! and technically, it's operating profit not net profit, but they are kind of the same thing.

So ROCE =

operating profit x 100
capital employed

Reply 26

love2learn

Aplin

I been looking over the papers and the amount of ratios you guys are trying to learn is far to many... Look over some past papers, you will see what I mean. There is only 1 or 2 per paper >.>

The problems is you don't know which ones!
ARR, NPV and Payback are dead certs though

Also if there is an investment appraisal question it may not call for ratios previously mentioned on this post but you need to do them to show that you've analysied data, as evidence etc. Esp. for those higher grades

Reply 27

love2learn

BigDog04

How do you calculate NPV and ARR? I tried doing Bus 4 June 02 q2 to no avail. Any help appreciaated (AQA)

I'm working on it now, and will post formula later. Difficult to format!
:cool:

Reply 28

love2learn

This is the mark scheme for June 2002, Unit 4:
http://www.aqa.org.uk/qual/gceasa/qp-ms/AQA-BUS4-W-MS-Jun02.pdf

NPV, ARR and Payback.doc35.8KB

Reply 29

love2learn

I don't know if I included it, but the payback result is 1 year, 8 months

Reply 30

Audionut

How do you get from T0 to T1 is where i'm getting confused. If its -4.0m at T0 and T1 has a cash inflow of 4.5m then shouldn't be 0.5m or is there some other variable I have to add to 4.5 ?

Thanks In Advance

Reply 31

love2learn

T0 is the year of purchase
The project then runs for 3 years: t1, t2, and t3

And I sent you a pm regarding your ROCE a few days ago

Reply 32

love2learn

for that question you get the sales revenue, divide it by 2 so you just have contribution, and then subtract the fixed costs for that year

Reply 33

Audionut

love2learn

T0 is the year of purchase
The project then runs for 3 years: t1, t2, and t3

And I sent you a pm regarding your ROCE a few days ago

I did sort out the ROCE.

I understand the project runs for t1, t2 & t3, but what I mean is how do you get from T0's Net Cash Flow to T1's Net Cash Flow if the Cash Inflow for T1 is 4.5 ?

Reply 34

love2learn

cash inflow is not 4.5 - that's the sales revenue

You need the net cash inflow

sales revenue/ 2 (because contribution = 50%) 4.5 / 2 = 2.25
then you take off the fixed costs 2.25 - 0.25

= net cash inflow

You have to do the same calculation for each figure

Reply 35

love2learn

operating profit x 100
capital employed

NOT

operating profit
capital employed x 100

!!

Reply 36

Audionut

love2learn

Yep I get it now. I was being a goon and had just realised you posted while I was about to post. Anyhows thanks for clearing that up. :smile:

Reply 37

Audionut

love2learn

operating profit x 100
capital employed

NOT

operating profit
capital employed x 100

!!

Actually its more like

(Operating Profit ÷ Capital Employed) x 100 :wink:

Reply 38

love2learn

Yep you're right.

it can actually be done either way I guess:

My textbook says operating profit x 100 over capital employed
My revision book has what you just posted though