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Hi Mike:
I’m doing F7 December 2016 exam paper. I’m really confused by part (b) in Question 32 ROCE calculation:
Revenue $89,300,000
Cost of sales $76,000,000
Gross profit $13,300,000Equity $15,300,000
Non current liability
8% Loan notes $10,000,0004% loan notes have been classified as a current liability due to their imminent redemption. As such, they should not be treated as long – term funding. However, they will be replaced immediately after redemption by 8% loan notes with the same nominal value, repayable in ten years’time.
ROCE = (13300,000 – 10,000,000)/ (15300,000 + 10,000,000)
I understand denominator part, but I don’t understand numerator part. Can you let me know if 10,000,000 is treated as operating expenses?
Many thanks
I can’t access December 2016 – my browser is too old 🙁
I’ll see if I can access it from a more up to date machine
Please post again so that I shall see your question is outstanding
Thanks
Hi Mke,
I really sorry to hear it from you. I will donate more to support you in the near future. I got idea, I have downloaded the question from ACCA. Can you click link below to see the question.
https://imgur.com/r8j3eFsMany thanks
Hi Mike,
Here is answer to the question. Please click on link: https://imgur.com/sUIje6KNo, still can’t access it
What’s the name of the question – I’ll google it
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