*** F7 June 2015 Exam was.. Instant Poll and comments ***

@chris1975z said:
Did anyone else find it odd in q2 they sold for 1m profit when the division was making 5.8m pre tax profit from memory!? I was useless on revised ratios and commentary left a lot to be desired. Admin expenses shot up 182% like for like? Possibly one off costs for legal expenses for sale? Working capital cycle increase and decrease in debtor days, inventory days and increase in payables days!? Increase in asset turnover in 2015 but decrease in gp margin?

For ratios I kept it pretty simple. Restated ratios etc. gross profit 33 down from 37. Op. Profit down from 17 to 10. Cap employed 27 to 21. asset turnover up from 1.5/6 to higher over 2.

Explained that gp had worsened, perhaps a change in selling price looks to be trying to increase sales offering discounts or cheaper goods. Or issue with cost of sales perhaps increased prices. Didn’t have enough to information to expand.

Op profit, worsened mostly due to admin expenses. Although a saving in distribution. Capital employed worsened to decrease in assets, better liabilities, commented this was good all be it marred from the sale of passets again don’t have full picture of information. Said how receivables and Inventory have been rationalised, positive by business.
Explained how the assets they have, are being ultilised well with the sales generated etc then.
Then concluded with business is in a positive shape, need to look into admin costs as to why so high, ensure it doesn’t happen next year. And if they have dropped sales costs need to increase units more as the increase in has just been offset in gross profit.

Didn’t have that time but was consistent and short and stated figures, used the key words and concluded. Hopefully 8 or more marks. Wrote about 2 pages

@chris1975z said:
Cash flow from financing had divs paid. Investing had docs rec’d 300 or 200 from memory. 14m cost of assets. Divs paid (39?) proceeds from sales of invest at 1.4m?

I thought it said to ignore investment income so I left out the 500 which was divs rec’d and the gain is operating.
So I had just 3 in Investing and 4 in a Financing. Guess 1/2 mark for each as it was just dragging figures across and was easy marks in fairness.c

Anyone got 40,000,000 and something for the eps calc?

@chris1975z said:
Did anyone else split finance lease between current and non current in q3? I treated 1m of in advance op lease as prepayment and set up a new line in current assets for same? Wording was a little unclear on that item I thought?

For leases from memory

B/F Year 1 – 8’000 interest 800 paid 1500 c/f 7300
Year 2 – 7300 interest 730 paid 1500 c/f 6530

6530 in long terms liabilities and 770 is current.

Op. Leases I messed up. Straight to cost of sales didn’t like the wording at all.

Surely the deposit paid 2300, was deducted from Fv of 8000. Lease was 5700 then int then repayments. And yes should have been split between cl (repay less interest) and ncl (remaining balance).

Simone, chill pill, just need to practice. Everything in exam was in syllabus somewhere, just worded in a way we’re not used to.

Audit is v straight forward, basically analysing scenarios. Good luck to all tomorrow, I turned up 25 mins late in June ’14 sitting and still got 72. Should ace it

I’m with you Robert, to the pound (or dollar)!

I’d run out of time on EPS,just took my profit and divided by 30,000 to get 23 cents. I know should have done rights issue, but hopefully still pick up a mark for having an answer.

Kasia, to early to say wait for mcq answers to come out, you may be pleasantly surprised.

Chris – convinced you have passed as you seem to have good logic, and similar answers to myself 😉 with more elaboration in places.

Disappointing if no MCQ answers released, allowed me to predict that I’d passed F9 in Dec.

How do u know this James?

Read that in the F5 section, presume it’s the same
I was pleased with the MCQ’s most were straightforward although took time

I need to see answers for the mcqs. I few I found really tricky. I still can’t believe a long question on cash flows or groups. I guess I should be happy as FS long questions I always liked. Can’t get over q2 though. I’ll be happy just to pass – never mind aiming high!!

Not that much of F5 was applicable here, but nice one.

Imagine P2 is an absolute nightmare based on this. Hoping I’m able to progress and you’re all helping convince me I’ll be ok, low pass probably, no prizes for a high score though.

The associate Q I got 1300, thoughts?

Also the hurricane one appeared to be the right answer by elimination?

Gearing only increased thru finance lease, yeah?