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Economics, Accounting & Business: Post your doubts here!

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ROCE is np over capital, and asset turnover is sales over assets, i dont get it, why did u divide 20 by 2.5

ROCE = operating profit margin x asset turnover

ROCE = Profit before interest and taxation / Capital employed

ROCE = [Profit before interest and taxation / Revenue ] x [Revenue / Capital employed]
This is how ROCE can be calculated...check the 1st formula! =)
 
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I explained both of them...
anyways here they are again
18 So the 1st one won't affect anything...
The second one too has no effect
So its basically jst the adjustment for the 3rd one
Ans - A
try doing it

11 Cash equivalents include cash deposits with less than 3 months to maturity.
Hence = 1200+16000-8000+7000 = 16200

 
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Its simple, we take into account only the dividends that are paid during the year. Which will that proposed in the previous year and the interim. Ignore current year proposed dividends

for the cashflows right? What abt p&l? just the current paid ones?
 
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Ok people...IM OUT!! Sorry can't help any1 no more....im jst too tired.. can't take it anymore....Y'all better get some sleep....Best of luck for Tomorrow =) <3
 
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ROCE = operating profit margin x asset turnover

ROCE = Profit before interest and taxation / Capital employed

ROCE = [Profit before interest and taxation / Revenue ] x [Revenue / Capital employed]
This is how ROCE can be calculated...check the 1st formula! =)

Oh i never knew. Shit i dont know anything :(
 
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I explained both of them...
anyways here they are again
18 So the 1st one won't affect anything...
The second one too has no effect
So its basically jst the adjustment for the 3rd one
Ans - A
try doing it
Are peference shares part of equity and hy 1t one won't effect?
11 Cash equivalents include cash deposits with less than 3 months to maturity.
Hence = 1200+16000-8000+7000 = 16200
 
Messages
102
Reaction score
10
Points
28
I explained both of them...
anyways here they are again
18 So the 1st one won't affect anything...
The second one too has no effect
So its basically jst the adjustment for the 3rd one
Ans - A
try doing it

11 Cash equivalents include cash deposits with less than 3 months to maturity.
Hence = 1200+16000-8000+7000 = 16200
Why first one woon't effect and are pefrence shares part of equity?
 
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Why first one woon't effect and are pefrence shares part of equity?

Because they are in the trading account and because sale return and purchase returns both have the same effect...they get deducted...so it wouldnt matter if it was sales returns mistaken with purchase returns or vice versa! =)
 
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