Most of the formulas aren’t given.. I think the only ones given are some from the balance sheet like liquidity and cash flow statement.. I fcked up finance bc I failed to memorise them and I just recommend doing it esp for the ones on the income statement like gross profit, net profit and know what the purpose of each statement ishi guys so like you know how everyones like the formula is given you just need to know how to do it yourself yeah im still so lost on that and my trials is next week i wish i was kidding and im not sure what to do like what are some MUST things to remember to approach any question that aren't given
thanks
brooo i knew the cogs formula but I still ended up failing the exam somehowthank goodness i dropped ts bro i could not for the life of me what was going on in those crazy ahh formulas like tf is the COGS formula and what the hell is going on on a balance sheet
yes the formula should be given to you most of the time, unless u have a really weird trial paper. anyways, thats the least of your concerns. what you should know is how to interpret the ratiohi guys so like you know how everyones like the formula is given you just need to know how to do it yourself yeah im still so lost on that and my trials is next week i wish i was kidding and im not sure what to do like what are some MUST things to remember to approach any question that aren't given
thanks
Umm the gearing acceptable ratio is 100% or 1yes the formula should be given to you most of the time, unless u have a really weird trial paper. anyways, thats the least of your concerns. what you should know is how to interpret the ratio
e.g: the gearing ratio requires you to show debt against equity. the preferable ratio would be 0.25-0.5:1
if a business has for example 0.8:1, that would indicate that they have way too much debt and you'll need to comment on that.
just know the preferable ratios for each of them so that you can comment on them and get those marks, thats the most you really need to know
and if ur struggling with how to actually calculate the ratio, i suggest you memorise formulas like the gross profit formula, the net profit formula etc
cogs: opening stock + purchases - closing stock
gross profit: sales - cogs
net profit: gross profit - expenses
unless it is given
The way I’ve learnt it is it’s 50% for smaller businesses and 100% for larger ones which is usually the case.
