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If Gross Profit is Turnover minus Costs, what was the absolute difference in the Gross Profit between Syballe Sons and the Competitor Consultancy Firm for Quarters 1- 4 inclusive?

        A.  Can’t Tell

        B.  £110,000

        C.  £147,000

        D.  £47,000

        E.  £11,000

Answer: B

Explanation:

Step 1 – Calculate the Gross Profit for Syballe Sons for Quarters 1-4 (11 + 8 + 7 + 10) – (9 + 6 + 6 + 8) = 7 = £70,000 Step 2 – Calculate the Gross Profit for the Competitor Consultancy Firm (22 + 18 + 19 + 20) – (13 + 15 + 17 + 16) = 18 = £180,000 Step 3 – calculate the difference £70,000 - £180,000 = £110,000 less So the correct answer is £110,000

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Which Brand’s gross revenue has increased in value by the largest amount between 2006 and 2008?

        A.  Brand 1

        B.  Brand 2

        C.  Brand 3

        D.  Brand 4

        E.  Cannot Say

Answer: D

Explanation:

Step 1 - Calculate the Gross Revenue for each Brand in 2007 and 2009. In millions we have: Brand 1 Brand 2 Brand 3 Brand 4 2006 40 x 25% = 10 40 x 15% = 6 40 x 35% = 14 40 x 25% = 10 2008 44.4 x 30% 44.4 x 10% = 44.4 x 25% = 44.4 x 35% = =13.32 4.44 11.1 15.54 Step 2 - Calculate the change in Gross Revenue for each Brand in 2007-2009 Brand 1 Brand 2 Brand 3 Brand 4 2006-2008 3.32 1.56 decrease 2.9 decrease 5.54 increase increase So the correct answer is Brand 4

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If Earnings per share = Pre-tax profit / Number of shares issued, how many shares were issued in 2008 compared to 2006?

        A.  2,500,000 less

        B.  2,250,000 less

        C.  25,000 more

        D.  2,500,000 more

        E.  250,000 less

Answer: A

Explanation:

Step 1 – calculate the Number of shares issued in 2008 Earnings per share = Pre-tax profit / Number of shares issued 1.2 = 9,000,000 / Number of shares issued Number of shares issued = 9,000,000 / 1.2 = 7,500,000 Step 2 – calculate the Number of shares issued in 2006 0.85 = 8,500,000 / Number of shares issued Number of shares issued = 8,500,000 / 0.85 = 10,000,000 Step 3 – Calculate the difference 7,500,000 - 10,000,000 = 2,500,000 less Thus the correct answer is 2,500,000 less

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For the average annual pre-tax profit (for the years 2007-2009) to equal the average annual pre-tax profit (for the years 2007-2010), what must be the new 2010 Projection?

        A.  £895,000

        B.  £910,000

        C.  £1,150,000

        D.  £8,950,000

        E.  £9,100,000

Answer: E

Explanation:

Step 1 – calculate the average annual Pre-tax profit between 2007- 2009 (8.7 + 9.0 + 9.6)/3 = 9.1 Step 2 – create an equation where X = 2010 Projection and the average annual pre-tax profit (2007-2010) = 9.1 Step 3 – 9.1 = (X + 8.7 + 9.0 + 9.6)/4 X = (9.1 x 4) - 8.7 - 9.0 - 9.6 = 9.1 million So the correct answer is £9,100,000

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In which year was pre-tax profit less than 20% of total gross revenue?

        A.  2007

        B.  2007

        C.  2008

        D.  2009

        E.  None of these

Answer: D

Explanation:

Calculate the % of pre-tax profit for each year; Total Gross Pre-Tax Pre-Tax Revenue Profit profit/total gross revenue 2006 40 8.5 21.25% 2007 42.7 8.7 20.4% 2008 44.4 9.0 20.3% 2009 50 9.6 19.2% So the correct answer is 2009


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