assessment unit 7

System
System Posts: 100,534 🤖 Admin 🤖
Please can somebody help me i have a question on a specimen mock assessment:-

The gross profit fiqures for 2003 are shown in the answer booklet. These figures need to be indexed to 2004 values. Using the index supplied by the company in the questions booklet. I then need to complete the table in the answer booklet. After reading the question and books several time i am still no closer to doing the questions. I do not think we have even covered this in class.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:assessment unit 7

    Hi

    The equation is =

    Gross Profit (2003) x Index Base Figure (2004) / Index Figure for 2003

    So if you had the following index figures:

    2003
    Sept 117.1
    Oct 112.0
    Nov 113.0

    2004
    Sept 110.0
    Oct 112.5
    Nov 114.5

    Index Figure to Sept 2004

    Gross Profit for 2003 = 204,000

    You'd do 204,000 x 110.0 / 117.1 = 191631.08 as new indexed gross profit.

    Hope this helps

    x
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:assessment unit 7

    thank you for your quick reply looking at what you have wrote i can see the answer. i was up until w this morning trying to work it out.
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