Help with dfs, um stressed
CAPTAIN
Registered Posts: 6 Regular contributor ⭐ 😼 ⭐
Hi guys ccan someone pliz answer me on this one! Section one of DFS everything balanced but i had a problem with 2.1 Gearing ratio I used the formular
Debt divided by equity x 100
So I took the long term loan and divided it by equity, i showed my workings for all ratios, Is it okay, ,
I failed to define current assets and liabilities rather i defined assets and libilities,:
Another problem was Net profit ratio, I used the formular
Net Profit divided by turnover x 100, but in the book the say Operating profit divided by turnover x 100, pliz guys help how do they mark our papers will I pass,
Debt divided by equity x 100
So I took the long term loan and divided it by equity, i showed my workings for all ratios, Is it okay, ,
I failed to define current assets and liabilities rather i defined assets and libilities,:
Another problem was Net profit ratio, I used the formular
Net Profit divided by turnover x 100, but in the book the say Operating profit divided by turnover x 100, pliz guys help how do they mark our papers will I pass,
0
Comments

Hi think gearing ratio is debt over capital employed (equity and non curr liabilities) x 100.
The net profit ration is I think operating profit over revenue yes, but this is net profit.
Section 2 I was not sure about myself just hoping my waffle was enough!!!
Tracey0 
Hi Captain,
There are two ways you can calculate gearing:
debt / capital employed
debt / equity
so you were quite right.
As for the net profit you should be ok as long as you showed the formula that you used to calculate it.
Don't worry  i am panicking too! I stupidly included current liabilities in the debt for the gearing ratio and i did exactly the same as you and gave the definitions of assets and liabilities instead of current ones.
I did so well on section 1 and i'm just keeping my fingers crossed that those two mistakes on section 2 won't cost me the whole exam!
Shame we have to wait so long to find out!
Ampsie
:001_smile:0
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