Cima C02 Exam Question No 33

Question No 33:

The following information was extracted from the balance sheets of ABC at 31 December Year 2 and at 31 December Year 1:

                                               Year 1                 Year 2
Stock                                     100                       120
Debtors                                 140                        175
Trade creditors                     120                       140
other creditors                      55                          75

What figure should appear as part of the cash flow statement for the year ended 31 December 2002?

A. $25,000 outflow
B. $15,000 outflow
C. $15,000 inflow
D. $25,000 inflow

Answer: B

Cima C02 Exam Question No 32

Question No 32:

An increase in inventories of $500 and a decrease in the bank balance of $600 and an increase in payables of $1,400 results in:

A. A decrease in working capital of $1,500
B. An increase in working capital of $1,500
C. A decrease in working capital of $1,300
D. An increase in working capital of $1,300

Answer: A

Cima C02 Exam Question No 31

Question No 31:

Which ONE of the following formulae correctly expresses the relationship between the return on capital employed (ROCE), net profit margin (NPM) and asset turnover (AT)?

A. ROCE = NPM ÷ AT
B. ROCE = NPM + AT
C. ROCE = NPM x AT
D. ROCE = NPM – AT

Answer: A