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John Moffat.
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- February 28, 2018 at 8:23 pm #439436
Hello there I would really appreciate if you could help me with this question
The companies last two years of finincial results are as follows
Year 1 year 2
(Most recent)
‘000. ‘000
Sales. 5250. 5320
Less expenses
Wages. 2500. 2200
Maintenance 80. 70
Repairs. 260. 3320
Directors
Salary. 150. 160
Directors
Bonus. 15. 18
Other costs
(Including dep)1200. 1180
Net profit. 1045. 1327Other information
Year 1. Year 2
Avg capital
Employed (000)13000. 12000
No of costumer 150000 140000What’s the return on sales (net profit percentage) and the return on capital employed to one decimal place
Return on sales %. ROCE %
A). 19.9. 27.0
B). 19.9. 8.0
C). 5.0. 8.0
D). 5.0. 7.0
If you are not allowed to answer this as it is a mock question about, please give me some hints please or tell me the logic
Thank youMarch 1, 2018 at 6:30 am #439471Net profit percentage is net profit as a % of sales.
ROCE is net profit as a % of capital employed.
I do suggest that you watch my free lectures on this. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
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