pev help dec 05

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
Hi, Im sutck on pev dec 05 question 2.2b)

It asks us to restate the ROCE % after taking into account the additionl data.

I have the correct profit figure £452 but I cant understand how they get the net assets figure to be £3542. an exlpaination of how they get the 3542 would be of great help.

thanks..x

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:pev help dec 05

    could it be the capital figure?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:pev help dec 05

    Hi

    If you go on the technician forum, this has been answered under PEV December thread. Best of luck it is a really tricky one.
    Eva
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:pev help dec 05

    For clarification incase you can't find the other thread, it is calculated as follows:

    (Remember these figures are £000)
    Take original net asset figure of £3,800
    Less sale of fixed asset of £500
    Add additional sales revenue of £210
    Less additional admin cost of £25
    Add savings of materials £57
    This then equals: £3542

    To clarify some of the above figures, please see below:

    Original materials price was £1900 but we've made savings of 3%, therefore revised material price is £1843. (Therefore, 1900-1843 = 57 [cash saving])

    Original Revenue was £4200, but it's increased by 5%, therefore revised revenue is £4410. (Therefore, 4410-4200 = 210 remember this also increases your cash)

    £25 admin costs relates to the salary figure for the new credit controller thus reducing your cash.

    I hope this helped!

    Good luck for your exam!

    Regards
    Shona



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