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    (Original post by Bruce267099)
    Probably becuase it is usually how many times your current assets can pay your current liabilities so yeah just 1.
    3/4s ok i guess so not too bad
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    (Original post by whitingh)
    I got 2.99:1 for the current ratio, £26000 for profit and 14 for margin of safety (on the basis that you can't have 0.5 of a unit, especially not 0.5 schools)


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    Same!! You had to round up break even to 6 and take it from 20 to get 14.
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    (Original post by Bruce267099)
    Same!! You had to round up break even to 6 and take it from 20 to get 14.
    Yes! Thank god someone else did that too 😂


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    (Original post by whitingh)
    Yes! Thank god someone else did that too 😂


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    Your the first person i found who did the same
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    (Original post by Bruce267099)
    Your the first person i found who did the same
    I did the same too got 14😂
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    Wasn't the current ratio, inventories + cash divided by current liabilities + trade and other receivables (which is trade credit). Therefore 1.287:1 was the answer. Or something very similar to that. Had my geography exam as well SUPER HARD!


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    I almost got confused about the profit one because they gave us contribution and I was wondering why they gave us that, only for me to realise it was needed for the margin of safety question


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    (Original post by Foji)
    Wasn't the current ratio, inventories + cash divided by current liabilities + trade and other receivables (which is trade credit). Therefore 1.287:1 was the answer. Or something very similar to that. Had my geography exam as well SUPER HARD!


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    No, current assets is cash + inventory + receivables and current liabilities is just current liabilities


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    (Original post by ZULU-WARRIOR)
    Not too bad but i think theme 1 is gonna pull me down. And how the **** do you calculate profit margin. Probably got at least a few marks for showing the formula.
    There was nothing about profit margin were it, it only said to calculte profit or did i read it wrong
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    (Original post by whitingh)
    I almost got confused about the profit one because they gave us contribution and I was wondering why they gave us that, only for me to realise it was needed for the margin of safety question


    Posted from TSR Mobile
    I did contribution unit which was 1800, x 20 = 36,000 - Fixed costs
    36,000 - 10,000 = 26,000
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    (Original post by whitingh)
    No, current assets is cash + inventory + receivables and current liabilities is just current liabilities


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    Incorrect. Trade and receivables. Trade is credit. Credit is a cost. It wasn't only receivables, it had trade.


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    (Original post by igotnomoney)
    There was nothing about profit margin were it, it only said to calculte profit or did i read it wrong
    You are right it was just profit.
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    (Original post by kassy12324)
    I got 26000 for the profit, 14.5 for the safety margin
    I got same for profit but i think you done what most people has been doing, margin kf safety is the outputs so if you think about output cannot be a half so it was either 15 or 14 i got, 14
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    (Original post by Foji)
    Incorrect. Trade and receivables. Trade is credit. Credit is a cost. It wasn't only receivables, it had trade.


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    I think they mean receivables that are on trade credit, so money that will come in in the future, thus being a current asset


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    (Original post by Bruce267099)
    I did contribution unit which was 1800, x 20 = 36,000 - Fixed costs
    36,000 - 10,000 = 26,000
    Oooohh... That's a nice way of doing it actually


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    (Original post by whitingh)
    I got 2.99:1 for the current ratio, £26000 for profit and 14 for margin of safety (on the basis that you can't have 0.5 of a unit, especially not 0.5 schools)


    Posted from TSR Mobile
    im honestly ridiculous i got 2.99 for ratio then decided to put it as 299% ?!?!?!?!?why

    for margin of safety i ended up putting both (5.5 and 6) just in case
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    (Original post by whitingh)
    I think they mean receivables that are on trade credit, so money that will come in in the future, thus being a current asset


    Posted from TSR Mobile
    Money coming in the future would be non current...? Because they don't currently have it, as you said they'll have it in the future. Therefore its only logical to put it as a current liability since they have to currently pay it. Mhmm that sounds right


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    (Original post by whitingh)
    Oooohh... That's a nice way of doing it actually


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    Thanks i didn't really know what else to do.
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    (Original post by Bruce267099)
    I did contribution unit which was 1800, x 20 = 36,000 - Fixed costs
    36,000 - 10,000 = 26,000
    Yeah thags correct as well. I picked the simple and easy route of revenue take away cost but i checked by using your method too
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    (Original post by Foji)
    Money coming in the future would be non current...? Because they don't currently have it, as you said they'll have it in the future. Therefore its only logical to put it as a current liability since they have to currently pay it. Mhmm that sounds right


    Posted from TSR Mobile
    Current is within 12 months so it could be.
 
 
 
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