Credit Management Gearing  Help please!
lucym96
Registered Posts: 24
Hello!
This is my first time posting in here... usually I can find the answers I need already discussed but as I am asking about a AQ2016 sample assessment I don't think anyone has asked yet.
Wondering if anybody could help with credit management CDMT Sample Assessment 1
On task 2, ratio analysis it has asked for gearing (gearing = total debt/debt + equity)
So we are given various figures but essentially the ones I need are:
Non current liabilities (borrowing) = £2000
Total Equity = £1964
So to me it would be
2000/2000+1964 x 100% = 50.45
Now the answers say it should be 51.79
Am I missing something?
Sorry if it is something really obvious... not sure how to copy the rest of the question across as maybe it is the other figures I am missing.
If someone could help it would be much appreciated as my exam is Thursday!!
Thanks in advance
Lucy
This is my first time posting in here... usually I can find the answers I need already discussed but as I am asking about a AQ2016 sample assessment I don't think anyone has asked yet.
Wondering if anybody could help with credit management CDMT Sample Assessment 1
On task 2, ratio analysis it has asked for gearing (gearing = total debt/debt + equity)
So we are given various figures but essentially the ones I need are:
Non current liabilities (borrowing) = £2000
Total Equity = £1964
So to me it would be
2000/2000+1964 x 100% = 50.45
Now the answers say it should be 51.79
Am I missing something?
Sorry if it is something really obvious... not sure how to copy the rest of the question across as maybe it is the other figures I am missing.
If someone could help it would be much appreciated as my exam is Thursday!!
Thanks in advance
Lucy
0
Comments


Sorry definitely missed that  lesson learnt ha!
Thank you0 
Total debt is any interest bearing debt (short & long term loans, overdrafts)Michael JH Webster AATQB FMAAT0

Thank you  I was only included long term loans and not the short term!
Silly mistake.0
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