Which ratio are you talking about.

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CAPTAIN
CAPTAIN Registered Posts: 6 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Was there any ratio in her e-mail, i failed to answer task 1.3 and 1.5 pliz help will it affect me

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  • Sally
    Sally Registered Posts: 69 Regular contributor ⭐
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    Are you referring to the Gearing ratio she had quoted in her memo for Hoy Ltd for the previous year. It had used debt/equity to calculate gearing so we should have also - i missed this and used debt/capital employed.

    I dont know about missing 1.3 & 1.5 - were these the questions on IAS 16 and Confidentiality. I dont know how they mark these papers? They were only allocated short periods of time so hopefully they do not carry many marks.
  • GemmaLouise
    GemmaLouise Registered Posts: 56 Regular contributor ⭐
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    using the wrong gearing ratio - enough to fail the essay?!
  • mini_schnauzer
    mini_schnauzer Registered Posts: 347 Dedicated contributor 🦉
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    It gave you the 2008 figure for Gearing - so you could work out which gearing ratio to use for 2009 figure : debt/equity.
  • AnnieN
    AnnieN Registered Posts: 9 New contributor 🐸
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    I missed that completely. Did you advise to invest or not invest?
  • AnnieN
    AnnieN Registered Posts: 9 New contributor 🐸
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    I used wrong one too. I hope this does not mean a fail!
  • nag17
    nag17 Registered Posts: 8 New contributor 🐸
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    little bit confused

    Does any body knows or roughly can guess how many marks... or percentage that can be allocated to the eassy in section 2
  • mini_schnauzer
    mini_schnauzer Registered Posts: 347 Dedicated contributor 🦉
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    I said to withdraw the investment.
    The gearing ratio went above 88 (can't remember exact figure) so that combined with low interest cover (3.3 times) and falling revenue and no cash I said to withdraw.
  • Lyn32
    Lyn32 Registered Posts: 85 Regular contributor ⭐
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    Thats what I did not to invest, I was missed up with wording task because simply. I can't remember if a high or low result of the ratio good or bad, but that's my weakest part in section 2. I am please with all my ratio calculation and formula.

    In general the paper isn't bad at all, start remembering what I did on BTC though. I've change my calculation on tax payable on section 2 which is suicidal,I can't help thinking if I failed I can't forgive myself. Even though it is over bear in mind I work so hard on this particular task and in just one fatal mistake. I felt very stress I can't help it!
  • mini_schnauzer
    mini_schnauzer Registered Posts: 347 Dedicated contributor 🦉
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    I took both BTC and DFS. Fingers crossed DFS was ok, but when I think of BTC it brings tears to my eyes...

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