Pev

tosin

Can someone help me with PEV December 08 task 2.2 a, c and b, how did they get the 0.09 . Pls help am going out of my mind

sgtpepper

Pev

Do you mean 0.90 in 2.2 (a)? I think it's the calculation of the 10% failure rate that you have to take off to get the good production. In the model answers shown as 9,000/0.90 = 10,000 or you can do it as 9,000 x 10/90 to give 1,000 failure rate to add back on to the 9,000.

Hope that helps

tosin

thanks

thanks that really helps

princess

I was just about to ask about this.......thanks!!

rach40

Can anyone help me with Gearing ? how do you calculate ratio ? ref: PEV June 2008 paper, also Interest cover , how is that calculated ?
Thanks

SandyHood

Hunt around
lots of threads on gearing

Long-term loans x 100 xxxxxexpressed as a %
Net assets + Long-term loans

Interest payablexxxxx expressed as the "number of times"
Operating profit

rach40

Thanks for that - i was panicking incase in comes up monday.
Another question I am stuck on is Stock turnover - dec 2008 question 2.1. Raw material stock turnover in days - can not get answer to work - any help appreciated.

iss072

I am confused with interest cover now - my book says

operating profit

---

finance costs

is it the other way round??

donnaalwill

rach40 wrote: »

Thanks for that - i was panicking incase in comes up monday.
Another question I am stuck on is Stock turnover - dec 2008 question 2.1. Raw material stock turnover in days - can not get answer to work - any help appreciated.

You need to divide the stock by the raw material part of the cost of sales (glass)
So 60000/540000 x 365 = 40.56 days

exam panic

operating profit/interest payable

Esme

Everytime someone has told me about gearing and interest cover they've been different ratios!

I've learnt them as:

Gearing = Long term loans/Capital employed

Interest cover = Profit from operations/ Interest

Is this right??

SandyHood

yes

Esme
Please don't panic. I am well aware that you've worked hard and have the knowledge you need.
The most important thing is to be fresh for the exam tomorrow.
So a good sleep (not alcohol induced!!) so you wake up ready to do yourself justice in the morning.

In the exam, deep breath and READ during reading time so you can get a feel of the business.

Let me know how you get on.

Esme

Ahh.. thanks Sandy.. let's hope you are right!!