Use the above table to solve the following questions
If corporation tax of 21% was applied each year to the Profit Before Tax, what was the average net profit across 2006-2009?
Answer : A
Explanation:
Step 1 – Calculate the average Profit Before Tax across 2006-2009 (114.6 + 112.4 + 109.4 +107.2)/4 = 110.9
In which year did the combined Admin Costs and Loan Impairment Costs decrease in value?
Answer : C
Step 1 - The total Admin Costs and Loan Impairment Costs are as follows:
Thus the correct answer is (C) 2008
Admin costs are projected to increase by a quarter in 2010 and Net Interest to increase by 2.5%, whilst all other costs and incomes are projected to remain constant. What is the projected Profit Before Tax for 2010 (in £million)?
Step 1 – Calculate the increase in Admin costs 277.8 x .25 = 69.45 Step 2 – Calculate the increase in Net Interest 325.2 x 2.5%/100 = 8.13 Step 3 – Calculate the new Profit Before Tax using the 2009 Profit Before Tax as the starting point 114.6 - 69.45 + 8.13 = 53.28 Thus the correct answer is (A) £53.28 million .
Gills & Tines Ltd’s target has been to increase Profit Before Tax by more than 2% each year. In which year, or years, has this been achieved?
Answer : B
Step 1 – Calculate the % change in Profit Before Tax as shown in bold below;
Thus the correct answer is (B) 2007, 2008
What was the average annual income across the four years shown (to the nearest million)?
Step 1 – Calculate the annual income for each year
Step 2 - Calculate the average by dividing the overall total for all 4 years by 4 (407.4 + 401.2 + 401.4 + 396.6)/4 = 401.65 Step 3 - To the nearest million = £402 million
Thus the correct answer is (C) £402 million
