# OCR Business Studies F297 2016 - VGL Case Study watch

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1. guys what exactly is time series? please someone expplain it
2. ROCE = (PBIT/cap employed) X 100 so for 2014 (1.5+1.3)/(63+48) X 100 = 2.8/111 X 100 = 2.52% which the APT guide agrees with.
Interest cover = PBIT/ interest
3. (Original post by BlackDove)
Ok.. Is gearing creditors after 1 year/(creditors after 1 year + net assets employed) ?
is long term loans/ capital employed times 100
in this case long term loan will be (creditors falling due after one year + net assets employed ) / net assets employed (capital employed) x 100
right?
4. (Original post by alevel0620)
Im still confuses about the textile maths the powerpoint my teacher gave me said the BEP are 2115 pound per week and the guy who posted his BEP to me said is 3990000 profit per week. Im confused... someone help...
So lets look at it this way:

They buy 100 tonnes of textiles for £300 per tonne = £30000 costs

They sell 10% of it at £300, 20% at £400 and so on.. following the table on the BEP thing - This gives them a total revenue of £51,000

Minus direct costs = £21,000 Gross Profit.

There is then the fixed costs of £100,000 per year and £80,000 start up - Lets say it takes 8 years to pay off the startup costs, so £10,000 a year.
That puts our yearly fixed costs at £110,000. Divide that by 52 (there are 52 weeks in a year.) and you get £2115, this is their WEEKLY FIXED COSTS.

Work out the BEP by using Fixedcosts/Contribution(Gross Profit) and you get 0.1, which is 10 tonnes per week to break even.

190tonnes x 21000(revenue) = 3,990,000 weekly profit should they work off the 200 tonnes a week quota (Which is stupid to even try suggest, good job Michael! :P )

-Quote from a PM i sent.-
5. (Original post by alevel0620)
Im still confuses about the textile maths the powerpoint my teacher gave me said the BEP are 2115 pound per week and the guy who posted his BEP to me said is 3990000 profit per week. Im confused... someone help...
What's BEP?!
I got the annual profit as 2,074,000 I think, paying off the 80,000 over 8 yrs. but why not just use retained profit to pay for it ??
6. lewis, any chance you can explain time series analysis?
7. (Original post by Passc3c4)
lewis, any chance you can explain time series analysis?
TSA Album: http://imgur.com/a/b50Yb

Its a way of forecasting the future using averages basically. (Its bad to use it on its own and its not exactly accurate.)

APT:
8. (Original post by Lewis7_)
TSA Album: http://imgur.com/a/b50Yb

Its a way of forecasting the future using averages basically. (Its bad to use it on its own and its not exactly accurate.)
thank you, what are the calculations for them?
9. (Original post by Passc3c4)
thank you, what are the calculations for them?
I added the APT page which has the actual calcs. in it
10. How to do the seasonal varance ? quarterly moving average take away sales revenue ?
11. (Original post by Lewis7_)
I added the APT page which has the actual calcs. in it
i can't see it? don't trouble yourself, thank you for all the help anyways !
12. N
(Original post by alevel0620)
is long term loans/ capital employed times 100
in this case long term loan will be (creditors falling due after one year + net assets employed ) / net assets employed (capital employed) x 100
right?
No you need to do:

Creditors after 1 year
------------------------------------------------------------ X 100
Creditors after 1 year + net assets employed

So for 2015 = 60/(60+49) X 100 = 55.05%which APT agrees with.
13. (Original post by alevel0620)
How to do the seasonal varance ? quarterly moving average take away sales revenue ?
Seasonal variation is as follows:
Actual Sales - trend

Therefore 2012 Q3 = 208-122 = 86(Positive)
2012 Q4 = 124-122.5 = 1.75(Positive)
2013 Q1 = 96 - 123.5 = -27.5 (Negative)
and so on...

You then add up each variation for each quarter and divide by the amount there is - So Q1...

-27.5 + -21.5 = -49 / 2 = -24.5

Therefore -24.5 is the average seasonal variation on all trends in Q1.

On the graph, i exptroplated the line further (the dotted line) and then used the figure i got from the line in the formula to get a more accurate reading, IE.

2015 Q1 = 110 -24.5 = 96.5

hope that helps.

(Original post by Passc3c4)
i can't see it? don't trouble yourself, thank you for all the help anyways !
It's fine, i need to revise TSA anyway

try this link: http://prntscr.com/bg6n76 (Its a screenshot.)
14. (Original post by Lewis7_)
Seasonal variation is as follows:
Actual Sales - trend

Therefore 2012 Q3 = 208-122 = 86(Positive)
2012 Q4 = 124-122.5 = 1.75(Positive)
2013 Q1 = 96 - 123.5 = -27.5 (Negative)
and so on...

You then add up each variation for each quarter and divide by the amount there is - So Q1.
-27.5 + -21.5 = -49 / 2 = -24.5

Therefore -24.5 is the average seasonal variation on all trends in Q1.

On the graph, i exptroplated the line further (the dotted line) and then used the figure i got from the line in the formula to get a more accurate reading, IE.

2015 Q1 = 110 -24.5 = 96.5

hope that helps.

It's fine, i need to revise TSA anyway

try this link: http://prntscr.com/bg6n76 (Its a screenshot.)
For getting the final figure of 96.5, can you not use the average of all quarter 1 figures + the average seasonal variation? That's the way I was taught :/

ETA:
Doing it my way gets you (100+96+104+96)/4 - 24.5 = 74.5, oh crap. 😩😩
I don't trust my graph skills to accurately extrapolate
15. (Original post by BlackDove)
For getting the final figure of 96.5, can you not use the average of all quarter 1 figures + the average seasonal variation? That's the way I was taught :/
if you get the same figure and it works, stick with how you were taught, im just explaining how I was taught it works
16. (Original post by Lewis7_)
if you get the same figure and it works, stick with how you were taught, im just explaining how I was taught it works

I just tried it and it doesn't, fml
17. (Original post by BlackDove)
I just tried it and it doesn't, fml
The mark scheme will have a 10% leeway on the graph readings (I think its 10%, might be more.) as no graph is the same. So extrapolating is your best bet.

have a look at my graph and see if you can work off of that (It only has the averages plotted!)
18. (Original post by Lewis7_)
The mark scheme will have a 10% leeway on the graph readings (I think its 10%, might be more.) as no graph is the same. So extrapolating is your best bet.

have a look at my graph and see if you can work off of that (It only has the averages plotted!)
I can only find your table not graph
19. (Original post by BlackDove)
I can only find your table not graph
http://imgur.com/a/b50Yb

Its an album! Scroll down
20. What formulas should I know for the exam? I don't know any

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