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Woodbank co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Woodbank co

Viewing 2 posts - 1 through 2 (of 2 total)
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  • February 7, 2021 at 10:16 am #609507
    cadhakan
    Participant
    • Topics: 71
    • Replies: 123
    • ☆☆

    Hi sir,

    I do not understand why in ratios with Shaw co when we calculate ROCE in that operating profit is 18000 but why finance cost 1750 is not included???

    February 8, 2021 at 8:47 pm #609732
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7177
    • ☆☆☆☆☆

    Hi,

    The finance cost comes after the operating profit and so is not included. If you deducted the finance cost then you would be calculating profit before tax.

    Thanks

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