Cost of Sales Average Inventory (answer given in times) 4.4 Cambridge International A Level only Working Capital Cycle (in days) Trade Receivables Turnover (in days) + Inventory Turnover (in days) – Trade Payables Turnover (in days) or Average Collection Period + Inventory Turnover (in days) – Average Payment Period Net Working Assets to Revenue (Sales) Net Working Assets = Inventories + Trade Receivables – Trade Payables Net Working Assets Revenue (Sales) × 100 Income Gearing Interest Expense Profit Before Interest and Tax (PBIT) × 100 Gearing Ratio Fixed Cost Capital Total Capital which is: Non-Current Liabilities + Preference Share Capital Issued Ordinary Share Capital + All Reserves + Non-Current Liabilities + Preference Shares
Cambridge International AS and A Level Accounting 9706 syllabus Summary of commonly used ratios (AS and A Level) 27 Back to contents page 4.5 Investment ratios (stock exchange ratios) Cambridge International A Level only Earnings per share Net Profit – Preference Share Dividend Number of issued Ordinary Shares Price Earnings Ratio Market Price per share Earnings per share Dividend yield Dividend paid and proposed Market Price of share Dividend cover Profit available to pay ordinary dividend Ordinary dividend paid Dividend per share Ordinary dividend paid Number of issued Ordinary Shares Calculate ratios using year-end balances where appropriate, unless the question specifies the use of average figures. Calculate ratios to the number of decimal places required by the question.
Cambridge International AS and A Level Accounting 9706 syllabus Other information 28 Back to contents page 5. Other information Equality and inclusion Cambridge International Examinations has taken great care in the preparation of this syllabus and assessment materials to avoid bias of any kind. To comply with the UK Equality Act (2010), Cambridge has designed this qualification with the aim of avoiding direct and indirect discrimination. The standard assessment arrangements may present unnecessary barriers for candidates with disabilities or learning difficulties. Arrangements can be put in place for these candidates to enable them to access the assessments and receive recognition of their attainment. Access arrangements will not be agreed if they give candidates an unfair advantage over others or if they compromise the standards being assessed. Candidates who are unable to access the assessment of any component may be eligible to receive an award based on the parts of the assessment they have taken. Information on access arrangements is found in the Cambridge Handbook which can be downloaded from the website Language This syllabus and the associated assessment materials are available in English only. Grading and reporting Cambridge International A Level results are shown by one of the grades A*, A, B, C, D or E, indicating the standard achieved, A* being the highest and E the lowest. ‘Ungraded’ indicates that the candidate’s performance fell short of the standard required for grade E. ‘Ungraded’ will be reported on the statement of results but not on the certificate. The letters Q (result pending), X (no results) and Y (to be issued) may also
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