ECR need help please!!!

Loops1980Loops1980 New MemberPosts: 8Registered
Hi, my name is Lyndsey & am I currently studying ECR with Kaplan Financial @ Newcastle.

I passed Foundation earlier this year & found this ok but I am really struggling with ECR.

I have a simlation on the 11th May & I am getting a bit nervous about it!

I just can't seem to take it in, I am ok with LIFO, FIFI & AVCO & the HI-LOW method but that is about it, I am struggling to remeber all the formulas of how to work everything else out.

Any help or tips would be greatly appreciated!

Thanks in advance

Lyndsey

Comments

  • mikesmikes Trusted Regular Posts: 254Registered
    Hi Lyndsay,

    Welcome to the forums.

    I did a search, as i remembered that another member had made up there own acroynm for rembering the formulas, hopefully this will be of help.

    Chloe -Contribution = Selling Price per Unit-Variable Costs per Unit
    Buys - Breakeven in Units = Fixed Costs/Contribution
    Pink - PV Ratio = Contribution/Sales Price
    Biscuits-Breakeven In Revenue = Fixed Costs/PV Ratio
    Mummy-Margin of Safety In Units = Forecast - Breakeven
    Makes -Margin of Safety % = Margin of Safety in Units/Forecast x 100
    Them-Target Profit = Fixed Costs + Target Profit/Contribution

    (hope you don't mind Tracy).

    Let us know if you need any more help, on other points on the subject. Me or someone else, will only be too happy to help. You are not alone here.

    Regards

    Michael.:thumbup1:
  • Loops1980Loops1980 New Member Posts: 8Registered
    Hi Michael,

    Thanks for that, I have printed it off and will try to remember it!

    Think I have just got to keep practicing, I panic about everything!!

    Lyndsey
  • chetschets Just Joined Posts: 2Registered
    unit 7 simulation taks 1 vat return

    Does anyone know how to incoporate bad debt relief amount to the vat form , in the book it say add bad debt relief to the box no 4 in the vat return form . Pls help
  • RacheyRachey Experienced Mentor Posts: 589Registered
    Off the top of my head i dont know if box 4 is purchases, but if it is then its correct.
  • chetschets Just Joined Posts: 2Registered
    unit 7 vat return

    Hi Rachel , i did try adding the two but the answer that i got is wrong if i add 376 with with 132364 then it come out to be 132740 but the actual answer on the website is 132420, the question is from simulation d1891 ie on the aat wed site as well.
  • shuurowshuurow New Member Posts: 6Registered
    Hi chets. The 376 is a bad debt inclusive VAT. You need to find out the VAT of 376 first. which is 56, this is the amount you need to add this is the VAT debt you need to reclaim. this is 132364 + 56 = 132420.
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