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AQA A2 BUSS3, 13 June 2013

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Hey guys, this exam is also scaring me. I got a D last time round
My unit 1 and 2 grades were both good so I need to improve on this :frown:

ThereforeI have a few questions...

1. What formulas should I memorise? Since they only give you some and not all
2. Any predictions? Or likely things that might come up?

Thanks guys :smile:

1. Working Capital = current assets-current liabilities
ARR = Average Annual Profit/Investment x100%
Payback = Amount Invested/Annual Profit From Investment
Market Growth = (New Market Size-Old Market Size)/Old Market Size x100%
Market Share = Sales/Total Market Size x100%
Free Float = EST(Next activity)-Duration(This activity)-EST(This activity)
Total Float = LFT(This activity)-Duration (This activity)-EST(This activity)

2. Finance will definitley come up. Not sure about the others though.

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Reply 101

username1136783

Original post by Indyy

In my Sixth Form, everyone got B's and above apart from one D in Jan 2013.

In Jan 2012 (My year), everyone got B's and above and one E. Guess who got the E? :cool:

So yeah, it's a weird paper overall. I remember my teacher telling me the examiners dont have to have knowledge in the subject area to mark the paper. They just have the mark scheme and tick away.

And are you the user who was in the Kaiser to Fuhrer thread? I thought i recognised your username or something...

aah that's so worrying, they should be qualified to mark the paper at the least!! because only marking from the mark scheme is way too specific. I HATE THIS PAPER!!

and yeah! haha, i recognised yours too! did you find that paper okay? :smile:

Reply 102

Indyy

Original post by sofiax0

And AQA's mark schemes are just so vague.

It was a good paper. Everything i wanted came up. How did you find it?

Reply 103

kbr118

What ratios do we need to learn for this exam? I know theres around , but I can't seem to find what ones they are... :smile:

Reply 104

nadster

Original post by kbr118

What ratios do we need to learn for this exam? I know theres around , but I can't seem to find what ones they are... :smile:

Liquidity (current, acid test), profitability (margins, ROCE), creditor days, debtor days, asset turnover, inventory turnover, shareholder ratios (dps and dividend yield) and gearing. However, any of these that will be needed will be given at the start of the exam booklet, apart from profit margins

Reply 105

username1136783

Original post by Indyy

And AQA's mark schemes are just so vague.

It was a good paper. Everything i wanted came up. How did you find it?

they're weird. yeah i didnt think the paper was too bad :smile:

i have no idea how ive done but the questions were quite nice so :smile:

Reply 106

username1136783

Can anyone help me with payback period, I'm getting so confused with it, even though I shouldn't be

on this question:

Project cost: $25,000
Cash Flow Year 1: $2,000
Cash Flow Year 2: $8,000
Cash Flow Year 3: $14,000
Cash Flow Year 4: $20,000
Cash Flow Year 5: $26,000
Cash Flow year 6: $32,000

What do you get the payback period for this and how did you work it out?
thanks! :smile:

Reply 107

kbr118

Original post by nadster

okk thank you :smile:

now need to actually try to learn them ! :P

Reply 108

Indyy

Original post by sofiax0

Year 0 (25) - Initial cost
Year 1 (23)
Year 2 (15)
Year 3 (1)
Year 4 +19

So, payback is between the 3rd and 4th year.

To find what week we do

1/20 x 52 = 2.6

Payback = 3 years and 3 weeks

I could though be terribly wrong. I got a weird way of working it out, and i need to write it down.

Edit - I worked it out on paper, and got the same answer. LOL

(edited 10 years ago)

Reply 109

nadster

Original post by kbr118

okk thank you :smile:

now need to actually try to learn them ! :P

Don't focus too much on these as the formulae are given. As long as you know what they mean and when to use in what situations, you'll be fine. Make sure you learn NPV, ARR, payback (the investment appraisal stuff) as this is not given

Reply 110

kbr118

Original post by nadster

Yeah they are the ones im going to learn, im retaking so I have a rough idea on most of them anyway :smile:

Reply 111

nadster

Original post by kbr118

Yeah they are the ones im going to learn, im retaking so I have a rough idea on most of them anyway :smile:

I'm retaking too:/ what did you get first time?

Reply 112

username1136783

Original post by Indyy

ahh okay, you work it out a completely different way to how I would, but that's probably why I get it wrong every time, because in my book it says that the equation is amount invested/ annual profit from investment, but idk where i go wrong but that doesnt seem to work!

on the method you used, you do it out of 20, because it was originally 20,000 right? so that means say it was like 100,000, it would be out of 100?

Reply 113

Indyy

Original post by sofiax0

My book doesn't even have a formula.

I divided by 20 because that was the net profit from the next year. It wasn't originally 20,000. The initial cost was 25,000

Reply 114

username1136783

Original post by Indyy

My book doesn't even have a formula.

I divided by 20 because that was the net profit from the next year. It wasn't originally 20,000. The initial cost was 25,000

yeah thats what i meant haha, so say now the initial cost is 54,000,
using the formula you use, is this right? or have i done something wrong? :frown:

year 1 = 52
year 2 = 44
year 3 = 30
year 4 = 10
year 5 = (16)

so then you'd do

10/26 x 52 = 20 (because 26,000 is the net profit for year five - this is the bit im slightly confused on)

so the project payback is 4 years and 20 weeks??

Reply 115

Indyy

Original post by sofiax0

yeah thats what i meant haha, so say now the initial cost is 54,000,
using the formula you use, is this right? or have i done something wrong? :frown:

I just done that now and got the same answer as you.

Basically, you start of with the initial cost, and you just keep cumulating the net profit onto the cost until you reach a surplus. When you reach the surplus the payback has been reached. (Because it's now a positive number, from a negative one)

Then, you take the cumulative amount just before it reaches a surplus, and divide it by the next years net profit and either times it by 52 to get the weeks, or 12 to get the month.

I hope that makes sense it was kinda confusing me too!

(edited 10 years ago)

Reply 116

username1136783

Original post by Indyy

yes it does!! thank you so much, if this comes up in the exam you are my actual life saver! :biggrin:

Reply 117

Indyy

Original post by sofiax0

yes it does!! thank you so much, if this comes up in the exam you are my actual life saver! :biggrin:

+ With your example

0 | (54) | (54) --------------------> Initial cost
1 | 2000 | (54)+20 = (34) ---> You just keep adding the net until you reach a +
2 | 8000 | (44)
3 | 14000 | (30)
4 | 20000 | (10)
5 | 26000 | +16

Payback is clearly between years 4-5 because that's where the cumulative returns become positive.

So, you take the cumulative returns of year 4 (10) and divide that by the net returns of the next year which is year 5 (26) and times that by 52, to get the exact week of where payback occurs in year 4. So it's 4 years. 20 wks.

I hope that's kinda clearer LOL.

And dont worry about!

Reply 118

RKAUR

Hi guys this is my 3rd time!
got a D first then a U ! But every time my teacher marks it I get an A, external student now finding it so hard to get the same answers as mark scheme!
How is everyone revising