[insertuser]

(Original post by yayifications)
Why can gearing be so many different figures?


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because people had different figures for equity, from their balance sheets

[Captivity of negativity]

well lets be clear majority of the people wont even get the mark for the formula

non current liabilities/capital employed *100
non current liabiliies/equity *100

anything else is wrong.

[insertuser]

(Original post by Captivity of negativity)
well lets be clear majority of the people wont even get the mark for the formula

non current liabilities/capital employed *100
non current liabiliies/equity *100

anything else is wrong.

long term debt+preference shares/long term debt+equity * 100 ?

[Captivity of negativity]

inserter ur formulae wont be accepted. Gearing answer will be accepted, formula is wrong according to the new IAS . look at markscheme for january 2012

so 2/3 marks

[Mosinbad]

(Original post by bexy1991)
You do include bad debt I'm sure you do. My teacher told us you do.

Ur teacher is wrong lool

IAS7-statements of cash flow
U add bk on loss disposal bz its a non cash expense
U add back on depreciation bz its non cash expense
Its the same concept with bad debts bz no money has left the bank account

1) 375increase proft, incrase net current asset- Business entitiy
2) stock (325) reduce proft and net current asset prudence
3) (2000) Reduce profit increase net current asset Accruals
3) Depreciation (1000) reduce proft bt no effect on net current assed-consitecny/ Prudence
4) The diffrnce incrased the proft. And the new prov reduced net current assets- Prudence þ

[dan94adibi]

(Original post by Mosinbad)
Ur teacher is wrong lool

IAS7-statements of cash flow
U add bk on loss disposal bz its a non cash expense
U add back on depreciation bz its non cash expense
Its the same concept with bad debts bz no money has left the bank account

1) 375increase proft, incrase net current asset- Business entitiy
2) stock (325) reduce proft and net current asset prudence
3) (2000) Reduce profit increase net current asset Accruals
3) Depreciation (1000) reduce proft bt no effect on net current assed-consitecny/ Prudence
4) The diffrnce incrased the proft. And the new prov reduced net current assets- Prudence þ

Finally someone confirming my bad debt answer. Its the same as taking away depreciation away from payments and say because I didn't write depreciation its right. Same goes with bad debt.

[yayifications]

I guess what to do with bad debt isn't as well known as depreciation... I don't remember it coming up in any past questions.

So does that mean the 2 month credit sales figure would be the full 20%? Or do you still reduce it to the 18%?


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[Mosinbad]

reduce it to 18%, that's all u need to put in the cash budget

[yayifications]

(Original post by Mosinbad)
reduce it to 18%, that's all u need to put in the cash budget

Okay! At least I did that part right then.


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[roverall]

(Original post by Captivity of negativity)
well lets be clear majority of the people wont even get the mark for the formula

non current liabilities/capital employed *100
non current liabiliies/equity *100

anything else is wrong.

its (loan capital + perference shares / Capital and reserves) or (Loan capital + preference shares / Capital and reserves + non current liabilities) as stated in the textbook

[dan94adibi]

(Original post by yayifications)
I guess what to do with bad debt isn't as well known as depreciation... I don't remember it coming up in any past questions.

So does that mean the 2 month credit sales figure would be the full 20%? Or do you still reduce it to the 18%?


This was posted from The Student Room's iPhone/iPad App

pretty sure if you put 18% you are calculating the bad debt. Anyone have the unofficial MS.

[Captivity of negativity]

no it wont be accepted (its (loan capital + perference shares / Capital and reserves) or (Loan capital + preference shares / Capital and reserves + non current liabilities) as stated in the textbook )

wont be accepted as a formulae

only two formulas

non current liabilities/capital employed *100
non current liabiliies/equity *100

[yayifications]

I wrote

Debt/Equity * 100

Then beside it I wrote (loan capital + perference shares / capital and reserves) but it was smaller and more for my own benefit than anything else.

What would I get then, 0 marks?

[Captivity of negativity]

debt/equity is wrong lool

Non-current liabilities x 100 (1) 20 000 000 x 100 (1) = 57% (1)
Capital employed 35 087 595 (1)
or
Non-current liabilities x 100 (1) 20 000 000 x 100 (1) = 132.56%
Or 133% (1)
Equity 15 087 595 (1)
4 marks
Non-current liabilities x 100 (1) 20 000 000 x 100 (1) = 53.92%
Or 54% (1)
Capital employed 37 087 595 (1)
or
Non-current liabilities x 100 (1) 20 000 000 x 100 (1) = 117.04%
Or 117% (1)
Equity 17 087 595 (1)
4 marks
 also accept 0.54:1 or 1.17:1

January 2012/ your wrong / your formula wrong , answer correct

[yayifications]

That's confused me more, LOL. Oh welll it was only like 2 marks?

[roverall]

(Original post by yayifications)
I wrote

Debt/Equity * 100

Then beside it I wrote (loan capital + perference shares / capital and reserves) but it was smaller and more for my own benefit than anything else.

What would I get then, 0 marks?

I think your get all the marks

and non current liabilities/capital employed *100 will get you marks aswell even though your meant to put preference shares. It says on mark schemes use positive marking so even if on the mark scheme your formula doesn't match, your still get the marks if your formula means the same thing. Would be harsh to not give you the marks for stated the correct formula but not the way they like it .... :P

[dan94adibi]

(Original post by yayifications)
I wrote

Debt/Equity * 100

Then beside it I wrote (loan capital + perference shares / capital and reserves) but it was smaller and more for my own benefit than anything else.

What would I get then, 0 marks?

Don't worry you will get your marks. That is the right formula.

[yayifications]

Hahaha so much speculation over one question!



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[Unknown2610]

(Original post by yayifications)
I wrote

Debt/Equity * 100

Then beside it I wrote (loan capital + perference shares / capital and reserves) but it was smaller and more for my own benefit than anything else.

What would I get then, 0 marks?

Yes your definitely correct.

The above is what I wrote got from my teacher thats been teaching for longer than I have been alive .

Just because it does not say them exact words in the mark scheme , does not mean it is wrong. Since debt = the debenture = non-current liability. and equity is correct since its the balancing figure used from the equity account

[A.A.T.]

(Original post by ossR)
The errors for the ict were if the computer system hadn't recorded returned goods, and a human error if someone untrained had input something wrong.

If goods were actually returned to the supplier but were unrecorded then the computer system would read a higher value than closing inventory valuation. This question was the alternate.