PEV - Return on Capital Employed

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
Hi all,

I wonder if someone can help me:

In the December 2005 PEV Past Paper Section 2 Task 2.2 b re: ROCE formula, I have a trouble understanding how to work out the figure of £3,542 for the Net Assets in ROCE formula. :roll:

What a nightmare......

Thanks in advance and good luck on Monday.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - Return on Capital Employed

    Bit of a tricky one:

    Best to list all the original Componets of the balance sheet data, then add or deduct any of the movements:

    Fixed assets =3,265 -500 (asset sold and cash distruted to shareholders =2,765

    Debtors = 1,050 (reduced by 200) = 850 (means theres is more cash so bank account also increases

    Cash = 85 +200+242 (includes increase of profit)

    Creditors (600)
    Net assets = 3,542
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - Return on Capital Employed

    Dear PetrolMonkey,

    THANK YOU, THANK YOU!!!

    So very grateful to you........ :D

    Regards,

    Lydia

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV - Return on Capital Employed

    No probs

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