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    also is operating profit the same as gross profit ??? i hate that maths-y bit of business </3
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    (Original post by sofiax0)
    also is operating profit the same as gross profit ??? i hate that maths-y bit of business </3
    Operating profit is the same as net profit (technically there is a different but they conflate them for A2, and assume them the same).

    Gross profit margin is revenue minus cost of sales and net profit margin is revenue minus cost of sales and other expenses.

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    (Original post by will2348)
    Operating profit is the same as net profit (technically there is a different but they conflate them for A2, and assume them the same).

    Gross profit margin is revenue minus cost of sales and net profit margin is revenue minus cost of sales and other expenses.

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    okay so in terms of roce its: net profit/ total equity + non-current liabilities?

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    I'm re-sitting this. I need to learn all the ratios and exam technique
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    (Original post by sofiax0)
    also is operating profit the same as gross profit ??? i hate that maths-y bit of business </3
    Revenue - cost of sales = gross profit

    gross profit - expenses = operating profit

    operating profit - finance cost = profit before tax

    profit before tax - tax = profit for the year (Net profit).

    To answer your question, no they are not the same thing.
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    (Original post by sofiax0)
    okay so in terms of roce its: net profit/ total equity + non-current liabilities?

    That's right.

    Total Equity = Shareholders Capital + Reserves/Retained Earnings

    Non-Current Liabilities = Long-Term Loans

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    (Original post by arnoob)
    I'm re-sitting this. I need to learn all the ratios and exam technique
    You don't need to know them as we get given the formula sheet


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    (Original post by sofiax0)
    also is operating profit the same as gross profit ??? i hate that maths-y bit of business </3
    Gross Profit = Sales Revenue - Cost of Sales

    Operating Profit = Gross Profit - Overheads
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    (Original post by jacktomos95)
    You don't need to know them as we get given the formula sheet


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    Sorry, I mean I need to practice them
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    Do they give you the forumlas for Investment Appraisal?
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    (Original post by Indyy)
    Do they give you the forumlas for Investment Appraisal?
    nope.
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    For Payback period, do we have to work out the cumulative returns or is that part of the column will be done already?
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    Also, how do i know what discount rate to use for NPV?

    So many damn questions i have....
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    (Original post by Indyy)
    Also, how do i know what discount rate to use for NPV?

    So many damn questions i have....
    For Payback, just give the answer in years and months or years and weeks. You might need to do that as part of the working out but it's not required in the answer. For NPV they will give the discount rate, if not, then use whatever interest rate is stated in the case study. Or you might be asked to choose, so go with the one that reflects the risk/current interest rate/or harshest measure. Never known them not to directly give it to you though, it'd be unusual for them to do it otherwise.

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    Im so bad at the maths part. I literally lose all my marks on those parts. Anyone have any advice or material i can practise
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    (Original post by A00)
    Im so bad at the maths part. I literally lose all my marks on those parts. Anyone have any advice or material i can practise
    Just look at past papers and practice the ratios and there should be at least one or two papers with investment appraisal.

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    Anyone else think a question from the finance section will come up? They didnt ask one in jan 2013.
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    (Original post by Infamous12)
    Anyone else think a question from the finance section will come up? They didnt ask one in jan 2013.
    Probably I'm revising Finance a tonne right now.
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    (Original post by CharlieTT)
    Probably I'm revising Finance a tonne right now.
    Its situations like these where i am so happy i study accounting. Haha.
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    I'm worried about the timing, that's why I'm resitting - totally got in a muddle with how much time I was spending on each question. For everyone who is worried about the ratios - it's essential that you understand what they mean and how to use them rather than how to calculate them as the formulas are at the front of the exam.
 
 
 
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