*** F9 June 2014 Exam was.. Instant Poll and comments ***

Thanks John.

Mr Moffat,

I thought the tax should be minus from debt in question 3?

@ joce practice past exam papers in 3 hours exam conditions. If you can answer 4 questions in 3 hours at home, you will be able to do it in exam.

Challenge yourself in answering 25 marks question in 15 min. Do it over & over again until you polished your computational & writing skills.

Plan your exam answering structure. Remember no plan means, confusion, nervousness and ultimately disaster.

Finally take exam as a battle.
1 ) know your strengths ( syllabus areas where you feel confident )

2) Cash in your strength by practising.

3) Know your enemy I.e the examiner, find about him, his comments, his exam reviews and most importantly his articles. I.e if he is saying all 4 questions to be attempted he expecting you to attempt all 4. ( this does not mean that answering 3 questions won’t get you pass marks, he is looking for quality not quantity )

Wish you best of luck.

Thanks John for your answers, could you please explain why you didn’t include the overdraft in the formula while compute the sales over net working capital ratio in question 2? As I think net working capital is current assets less current liabilities. Thanks again

Dont Worry Mathuran you can still get full marks provided you showed all the workings correctly

Omar: the working capital is inventory + receivables – payables.
The overdraft is part of how the working capital is being financed.

John any chance of getting answers to Q4 today?

My answer to question 4 will be uploaded in the next hour or so.

Thanks John. For Q4a I calculated growth in EPS using yearly EPS to two decimal places I.e
EPS year1 $1
EPS year2 $1.03
EPS year2 $1.06

Growth = 2 under root 1.06 -1 = 0.0295 or 2.9%

Is this still taken as correct answer?

Hi John,

Thanks for you answers, I approached Q1 slightly differently with regards to variable costs. I assumed the increase was a forecast change in price or that period so from Y1 to Y2 the increase was 25 and not subject to inflation for that period. I then used this as a base for the next period in inflated this total. So essentially I was only inflating last years amount.

For year 2 calculation was ((472.50 * 1.05) + 25 year increase = 521.13 variable per unit; this was my base for inflating the next years prices.

Is this totally wrong? My view is its down to interpretation of the forecasts. I also wrote a note of my assumption.

How many marks would I lose do to this different calculation method?

Your thought would be greatly appreciated.

James: I am a bit puzzled because you write about variable costs, but the figures you are stating are the selling prices.
I am afraid that have interpreted it wrongly because the question clearly states that the figures are before taking account of inflation. You should therefore have dealt with it the way that I have done in my answer.

You will lose marks as a result. However, don’t panic – each bit of your workings is marked separately, and you do not lose marks twice for making the same mistake twice.

The paper was nearly okay but the time allocated was little to complete all the questions.