Use the Table above to solve the below questions
Which year from 2007 onwards showed the greatest percentage change in Cash flow compared to the preceding year?
Answer : E
Explanation:
Step 1 – Calculate the % change in cash flow for each year
Thus the correct answer is (E) 2010
Which year had the lowest ratio of Adjusted earnings to Attributable profit?
Answer : C
Step 1 - Calculate the ratio for each year as shown in the table below;
0.Thus the correct answer is (C) 2008
In 2011, if Adjusted earnings increase by an eighth and there is a 2:3 ratio of (2011 Adjusted earnings: 2011 Cash flow), what will be the Cash flow in2011?
Answer : B
Step 1 – Calculate the 2011 Adjusted earnings 1.11 x 1 1/8 = 1.249 Step 2 – Calculate the 2011 Cash flow Adjusted earnings : Cash flow = 2:3 Cash flow = 1.249 x 3/2 = 1.87 Thus the correct answer is (B) £1.87 million
If the target was to have an average profit (per unit) in excess of 50p, in which year or years was this achieved?
Answer : D
Step 1 - Calculate the average profit (per unit) as follows:
Note the question asks for "in excess of 50p". So in 2006 where the profit was exactly 50p, this does not satisfy the requirement.
Thus the correct answer is (D) 2007 and 2010
From 2006 to 2007 Attributable profit increased at double the percentage rate as it did between 2005-2006. What was the Attributable profit figure for 2005?
Step 1 – Calculate the 2005-2006 rate of Attributable profit increase Rate between 2006-2007 = 2.11 / 1.95 = 8.2% increase Rate between 2005-2006 = 8.2 / 2 = 4.1% increase Step 2 – Calculate the Attributable profit figure for 2005 1.95 ¸ 1.041 = 1.87 (£million)
Thus the correct answer is (D) £1.87 million
