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    (Original post by Justabi96)
    Spoke to a friend, she said the best ones to remember are Acid test, current ratio and gearing; so

    Current ratio = Current assets divided by current liabilities.
    In this case - 2012 = 15662/9206 = 1.7
    2013 = 17039\10660 = 1.6

    Acid test ratio is: Current assets - stock divided by current assets.
    So... 2012 = 8720/9206 = 0.95 and 2013 = 10335/10660 = 0.97
    (Evaluate on that saying there is a slight improvement in 2013 but both are unhealthy.
    Finally gearing ratio is - long term liabilities divided by capital employed x 100.
    Applying it = 2012: 1722/8799 x 100 = 19.6% and 2013: 2648/10285 x 100 = 25.7%
    (Evaluate saying this is suitable - high gearing is usually over 50% which may suggest a high proportion of finance is though loans)

    I'm hoping this is right, may pick us up a few extra marks.
    most things are correct, however acid test ration is : (current assets-stock)/current liabilities, NOT CURRENT ASSETS!
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    For the mardidi question do u have to conclude with a yes or no? Im sure there are other ways


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    (Original post by Passc1c4)
    guys one thing to remember... do not assume that SHL will receive 25% of the projected profits if they were to purchase a stake in mardidi AND do not assume that they receive 100% either! If a questions comes up on mardidi and you have to speak about the pay back period or ARR, make sure you state that it is unclear whether or not the projected profit represents SHL's 25% share of the profits, or whether its all theirs!
    I understand this but say the calculation question was not CPA but to work out payback period and ARR, what would be best advised to use? Or would exam board realise this is unclear and award for both assumptions.
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    How should I respond to a question about unemplyment? Like what points should I talk about
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    Doing the exam tomorrow, just wondering if anyone has an idea on what one of the decision tree questions look like? I know how to illustrate one, but not sure on how they'll ask the question
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    Any idea how we can use the ratios in our answers?
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    Also, what is the ARR and PP for the mardidi investment?
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    (Original post by robinsandman)
    I understand this but say the calculation question was not CPA but to work out payback period and ARR, what would be best advised to use? Or would exam board realise this is unclear and award for both assumptions.
    However for the purpose of a calculation question, if we assumed that SHL received 25% of net profit in table 2, according to my calculations would give a negative ARR which is surely not possible? Therefore we should assume this data is 100% net profits for SHL?
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    (Original post by Ed Mr Big Balls)
    Doing the exam tomorrow, just wondering if anyone has an idea on what one of the decision tree questions look like? I know how to illustrate one, but not sure on how they'll ask the question
    Is this a joke? I think you may have the wrong exam board.
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    (Original post by GrundaloO)
    Is this a joke? I think you may have the wrong exam board.
    nope, I have a F297 revision pack which includes decision trees
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    (Original post by Passc1c4)
    most things are correct, however acid test ration is : (current assets-stock)/current liabilities, NOT CURRENT ASSETS!
    Oops that's my mistake
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    (Original post by Ed Mr Big Balls)
    nope, I have a F297 revision pack which includes decision trees
    The 13 marker is on CPA, if not that then ratios. Decision tree is not mentioned in the case study at all.
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    Good luck to everyone, just remember to read the question in front of you and don't answer the question you want to have.

    See you on the other side.
    Mark
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    Guys, what are social circumstances???
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    (Original post by GrundaloO)
    Good luck to everyone, just remember to read the question in front of you and don't answer the question you want to have.

    See you on the other side.
    Mark
    Good luck pal
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    What are environmental cirucmstances????
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    (Original post by GrundaloO)
    Good luck to everyone, just remember to read the question in front of you and don't answer the question you want to have.

    See you on the other side.
    Mark
    Good luck g


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    What is capital employed?!?!?
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    (Original post by Justabi96)
    Spoke to a friend, she said the best ones to remember are Acid test, current ratio and gearing; so

    Current ratio = Current assets divided by current liabilities.
    In this case - 2012 = 15662/9206 = 1.7
    2013 = 17039\10660 = 1.6

    Acid test ratio is: Current assets - stock divided by current assets.
    So... 2012 = 8720/9206 = 0.95 and 2013 = 10335/10660 = 0.97
    (Evaluate on that saying there is a slight improvement in 2013 but both are unhealthy.
    Finally gearing ratio is - long term liabilities divided by capital employed x 100.
    Applying it = 2012: 1722/8799 x 100 = 19.6% and 2013: 2648/10285 x 100 = 25.7%
    (Evaluate saying this is suitable - high gearing is usually over 50% which may suggest a high proportion of finance is though loans)

    I'm hoping this is right, may pick us up a few extra marks.
    Ah that's fab, thank you so much for letting me know 😊 spent the last hour and a half trying to get my head round the ratio formulas ahaha
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    (Original post by Justabi96)
    What is capital employed?!?!?
    Equity shareholders funds. Basically how much mkney they have from investors i think.
 
 
 
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