Business Numeracy (BN101) Tutorial Letter: May 2013 ... - imm
Page 1 of 5
Business Numeracy (BN101) Tutorial Letter: May 2013 examination session Dear Student Please make note of the following key areas pertaining to the Business Numeracy May Examination. You are reminded that the detail provided herein is merely a guideline for clarity and direction and you are encouraged to complete the entirety of the module content as outlined in the Learner Guide. Exam Structure The paper consists of six (6) questions. Any five (5) questions should be attempted resulting in an exam total of 100 marks. (The exam is 3 hours long.) Each question is worth 20 marks. Exam Content The following concepts are important for this exam in terms of the main basis for calculations: o Ratio, proportions and being able to manipulate percentages (including selling price, cost price, mark up and VAT calculations). o Time value of money calculations (e.g. Using the formula or interest factor tables to calculate the present value / comparing two alternative investments by computing the future values of each using the formula or interest factor tables). o Graphs:
Straight line (equation, intercepts and gradient).
Pie chart (sketching a pie chart free hand showing percentages.)
o Preparing basic financials (Income Statement and Balance Sheet).
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o Ratio analysis (using financial statements provided). o CVP analysis (Breakeven point in rand and units and margin of safety). o Basic statistics (In brief. Median and upper and lower quartiles). General Time management per question must be monitored carefully. Aim to mark maximise by attempting those areas which will result in you achieving the most marks initially. You are reminded to show your workings and calculations where necessary and ensure that they can be easily referenced. Examiners will not ‘hunt’ for substantiating workings. Number all questions CLEARLY and indicate ‘End’ when you have completed all questions in the examination. You must indicate all calculations clearly and indicate formulas used where necessary. For certain sections (such as income statement and balance sheet) the format of your answer is important and must be shown clearly and correctly. You are provided with a formula sheet and interest factor tables in the exam. (See the formula sheet attached on pages 3, 4 and 5 as a guide.) May we remind you that we are always available to assist with academic queries. Academic queries should be submitted in writing to: [email protected] We wish you a successful May 2013 examination session. Kind regards The IMM GSM Team
IMM (GSM) ©
MA May 2013
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Formula Sheet (BN101)
Financial Ratios
Gross profit margin = Gross profit/Sales % Net profit margin = Profit after tax/Sales % Creditors’ payment period = Average creditors/Credit purchases x 365 Creditors’ turnover = Credit purchase/Average creditors Debtors’ collection period = Accounts receivable (Debtors)/Credit sales x 365 Days stock on hand = Inventory/Cost of sales x 365 Current ratio = Current assets/Current liabilities Quick ratio = (Current assets – Inventory)/Current liabilities Debtors turnover = Credit sales/Accounts receivable (Debtors) Inventory turnover = Cost of sales/Inventory
Break-even
Margin of safety % = (Sales value – Break-even sales value)/Sales value x 100% Contribution margin ratio = Contribution margin/Sales Break-even sales value = Sales price per unit x Break-even point in units Contribution margin per unit = Sales price per unit – Variable cost per unit Break-even point in units = Fixed costs/Contribution margin per unit Total costs = Fixed costs + Variable costs
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Compound interest Future value = Present value x ( Future value of 1 = (
)
)
Future value of 1 n
5%
7%
1
1.05000
1.07000
2
1.10250
3
11%
12%
13%
1.09000 1.10000
1.11000
1.12000
1.13000
1.14490
1.18810 1.21000
1.23210
1.25440
1.27690
1.15763
1.22504
1.29503 1.33100
1.36763
1.40493
1.44290
4
1.21551
1.31080
1.41158 1.46410
1.51807
1.57352
1.63047
5
1.27628
1.40255
1.53862 1.61051
1.68506
1.76234
1.84244
6
1.34010
1.50073
1.67710 1.77156
1.87041
1.97382
2.08195
7
1.40710
1.60578
1.82804 1.94872
2.07616
2.21068
2.35261
8
1.47746
1.71819
1.99256 2.14359
2.30454
2.47596
2.65844
9
1.55133
1.83846
2.17189 2.35795
2.55804
2.77308
3.00404
10
1.62889
1.96715
2.36736 2.59374
2.83942
3.10585
3.39457
11
1.71034
2.10485
2.58043 2.85312
3.15176
3.47855
3.83586
12
1.79586
2.25219
2.81266 3.13843
3.49845
3.89598
4.33452
13
1.88565
2.40985
3.0658 3.45227
3.88328
4.36349
4.89801
14
1.97993
2.57853
3.34173 3.79750
4.31044
4.88711
5.53475
15
2.07893
2.75903
3.64248 4.17725
4.78459
5.47357
6.25427
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10%
MA May 2013
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Present value = Future value/( Present value of 1 = 1/(
)
)
Present value of 1 n
5%
7%
9%
10%
11%
12%
13%
1
0.95238
0.93458
0.91743
0.90909
0.90090
0.89286
0.88496
2
0.90703
0.87344
0.84168
0.82645
0.81162
0.79719
0.78315
3
0.86384
0.81630
0.77218
0.75131
0.73119
0.71178
0.69305
4
0.82270
0.76290
0.70843
0.68301
0.65873
0.63552
0.61332
5
0.78353
0.71299
0.64993
0.62092
0.59345
0.56743
0.54276
6
0.74622
0.66634
0.59627
0.56447
0.53464
0.50663
0.48032
7
0.71068
0.62275
0.54703
0.51316
0.48166
0.45235
0.42506
8
0.67684
0.58201
0.50187
0.46651
0.43393
0.40388
0.37616
9
0.64461
0.54393
0.46043
0.42410
0.39092
0.36061
0.33288
10
0.61391
0.50835
0.42241
0.38554
0.35218
0.32197
0.29459
11
0.58468
0.47509
0.38753
0.35049
0.31728
0.28748
0.26070
12
0.55684
0.44401
0.35553
0.31863
0.28584
0.25668
0.23071
13
0.53032
0.41496
0.32618
0.28966
0.25751
0.22917
0.20416
14
0.50507
0.38782
0.29925
0.26333
0.23199
0.20462
0.18068
15
0.48102
0.36245
0.27454
0.23939
0.20900
0.18270
0.15989
IMM (GSM) ©
MA May 2013
Business Numeracy (BN101) Tutorial Letter: May 2013 examination session Dear Student Please make note of the following key areas pertaining to the Business Numeracy May Examination. You are reminded that the detail provided herein is merely a guideline for clarity and direction and you are encouraged to complete the entirety of the module content as outlined in the Learner Guide. Exam Structure The paper consists of six (6) questions. Any five (5) questions should be attempted resulting in an exam total of 100 marks. (The exam is 3 hours long.) Each question is worth 20 marks. Exam Content The following concepts are important for this exam in terms of the main basis for calculations: o Ratio, proportions and being able to manipulate percentages (including selling price, cost price, mark up and VAT calculations). o Time value of money calculations (e.g. Using the formula or interest factor tables to calculate the present value / comparing two alternative investments by computing the future values of each using the formula or interest factor tables). o Graphs:
Straight line (equation, intercepts and gradient).
Pie chart (sketching a pie chart free hand showing percentages.)
o Preparing basic financials (Income Statement and Balance Sheet).
IMM (GSM) ©
MA May 2013
Page 2 of 5
o Ratio analysis (using financial statements provided). o CVP analysis (Breakeven point in rand and units and margin of safety). o Basic statistics (In brief. Median and upper and lower quartiles). General Time management per question must be monitored carefully. Aim to mark maximise by attempting those areas which will result in you achieving the most marks initially. You are reminded to show your workings and calculations where necessary and ensure that they can be easily referenced. Examiners will not ‘hunt’ for substantiating workings. Number all questions CLEARLY and indicate ‘End’ when you have completed all questions in the examination. You must indicate all calculations clearly and indicate formulas used where necessary. For certain sections (such as income statement and balance sheet) the format of your answer is important and must be shown clearly and correctly. You are provided with a formula sheet and interest factor tables in the exam. (See the formula sheet attached on pages 3, 4 and 5 as a guide.) May we remind you that we are always available to assist with academic queries. Academic queries should be submitted in writing to: [email protected] We wish you a successful May 2013 examination session. Kind regards The IMM GSM Team
IMM (GSM) ©
MA May 2013
Page 3 of 5
Formula Sheet (BN101)
Financial Ratios
Gross profit margin = Gross profit/Sales % Net profit margin = Profit after tax/Sales % Creditors’ payment period = Average creditors/Credit purchases x 365 Creditors’ turnover = Credit purchase/Average creditors Debtors’ collection period = Accounts receivable (Debtors)/Credit sales x 365 Days stock on hand = Inventory/Cost of sales x 365 Current ratio = Current assets/Current liabilities Quick ratio = (Current assets – Inventory)/Current liabilities Debtors turnover = Credit sales/Accounts receivable (Debtors) Inventory turnover = Cost of sales/Inventory
Break-even
Margin of safety % = (Sales value – Break-even sales value)/Sales value x 100% Contribution margin ratio = Contribution margin/Sales Break-even sales value = Sales price per unit x Break-even point in units Contribution margin per unit = Sales price per unit – Variable cost per unit Break-even point in units = Fixed costs/Contribution margin per unit Total costs = Fixed costs + Variable costs
IMM (GSM) ©
MA May 2013
Page 4 of 5
Compound interest Future value = Present value x ( Future value of 1 = (
)
)
Future value of 1 n
5%
7%
1
1.05000
1.07000
2
1.10250
3
11%
12%
13%
1.09000 1.10000
1.11000
1.12000
1.13000
1.14490
1.18810 1.21000
1.23210
1.25440
1.27690
1.15763
1.22504
1.29503 1.33100
1.36763
1.40493
1.44290
4
1.21551
1.31080
1.41158 1.46410
1.51807
1.57352
1.63047
5
1.27628
1.40255
1.53862 1.61051
1.68506
1.76234
1.84244
6
1.34010
1.50073
1.67710 1.77156
1.87041
1.97382
2.08195
7
1.40710
1.60578
1.82804 1.94872
2.07616
2.21068
2.35261
8
1.47746
1.71819
1.99256 2.14359
2.30454
2.47596
2.65844
9
1.55133
1.83846
2.17189 2.35795
2.55804
2.77308
3.00404
10
1.62889
1.96715
2.36736 2.59374
2.83942
3.10585
3.39457
11
1.71034
2.10485
2.58043 2.85312
3.15176
3.47855
3.83586
12
1.79586
2.25219
2.81266 3.13843
3.49845
3.89598
4.33452
13
1.88565
2.40985
3.0658 3.45227
3.88328
4.36349
4.89801
14
1.97993
2.57853
3.34173 3.79750
4.31044
4.88711
5.53475
15
2.07893
2.75903
3.64248 4.17725
4.78459
5.47357
6.25427
IMM (GSM) ©
9%
10%
MA May 2013
Page 5 of 5
Present value = Future value/( Present value of 1 = 1/(
)
)
Present value of 1 n
5%
7%
9%
10%
11%
12%
13%
1
0.95238
0.93458
0.91743
0.90909
0.90090
0.89286
0.88496
2
0.90703
0.87344
0.84168
0.82645
0.81162
0.79719
0.78315
3
0.86384
0.81630
0.77218
0.75131
0.73119
0.71178
0.69305
4
0.82270
0.76290
0.70843
0.68301
0.65873
0.63552
0.61332
5
0.78353
0.71299
0.64993
0.62092
0.59345
0.56743
0.54276
6
0.74622
0.66634
0.59627
0.56447
0.53464
0.50663
0.48032
7
0.71068
0.62275
0.54703
0.51316
0.48166
0.45235
0.42506
8
0.67684
0.58201
0.50187
0.46651
0.43393
0.40388
0.37616
9
0.64461
0.54393
0.46043
0.42410
0.39092
0.36061
0.33288
10
0.61391
0.50835
0.42241
0.38554
0.35218
0.32197
0.29459
11
0.58468
0.47509
0.38753
0.35049
0.31728
0.28748
0.26070
12
0.55684
0.44401
0.35553
0.31863
0.28584
0.25668
0.23071
13
0.53032
0.41496
0.32618
0.28966
0.25751
0.22917
0.20416
14
0.50507
0.38782
0.29925
0.26333
0.23199
0.20462
0.18068
15
0.48102
0.36245
0.27454
0.23939
0.20900
0.18270
0.15989
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