Expense Ratio (1 Viewer)

totally_screwed

Baddest Member
Joined
Aug 17, 2020
Messages
1,543
Location
🇵🇸
Gender
Undisclosed
HSC
2020
How did you get this?
as for sales I just used the total operating revenue 37,784. the ratio is specific to sales not all forms of input/inflow, so you shouldn't be adding "other income" imo

for expenses I did 8,081+443+341 which gave 8,864. I'm not sure if I did the expenses right but your expenses seems totally off
 

jimmysmith560

Le Phénix Trilingue
Moderator
Joined
Aug 22, 2019
Messages
4,116
Location
Krak des Chevaliers
Gender
Male
HSC
2019
Uni Grad
2022
Ok, doing it again I got the same answer as totally_screwed. I believe you shouldn't count the cost of sales (i.e. COGS) while calculating the expense ratio. If you look at Q24 b) of the 2020 HSC, you'll notice they didn't include COGS in their calculations.

This will give us:



OR

that you should only include literal expenses, meaning those showing the word "expenses". In that case, the ratio might be a little different:



Either way, I doubt financial ratios questions will be this complex in trial exams and the HSC exam.
 
Last edited:

viennamotley

New Member
Joined
Nov 26, 2020
Messages
12
Gender
Female
HSC
2021
Ok, doing it again I got the same answer as totally_screwed. I believe you shouldn't count the cost of sales (i.e. COGS) while calculating the expense ratio. If you look at Q24 b) of the 2020 HSC, you'll notice they didn't include COGS in their calculations.

This will give us:



OR

that you should only include literal expenses, meaning those showing the word "expenses". In that case, the ratio might be a little different:



Either way, I doubt financial ratios questions will be this complex in trial exams and the HSC exam.
Thank you so much!! Didn't realise I shouldn't add COGS. I also doubt they'll be this complex; this is for an assessment task :)
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top