[sipho]

i got that one as well, but i’m quite sure mine didnt say ‘30% was inventory’ …(or did it?) i struggled with that one. ended up getting 1.3:1

[sipho]

its in the BPP Revision Kit, question 276 (Box Co)

[sipho]

Box Co has an operating profit of $20,000, and operating assets of $95,000. The cost of capital is 12%. There is a proposed investment of $10,000 which will increase the operating profit by $1,400
What is the RI with and without the proposed investment?

Answer:
Before Investment After Investment
$ Divisional profit 20,000 21,400
Depreciation (850)
Imputed interest (12% of $95,000) (11,400)
Imputed interest (12% of $105,000) (12,600)
Residual income 8,600 7,950

My question is how and why did they calculate the depreciation(850) after the investment?

[sipho]

in CBE O/T questions where you have to select 2 or more correct statements by ticking their boxes, if you get one of the statements wrong do you still get part marks for the ones you got correct or you lose the whole 2marks even if you got 1 correct?

[sipho]

how do i re-register,please help.

[sipho]

Sir Mike,are the f4 quizzes downloadable?

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