CIMAPRA17-BA3-1 Exam - Topic 2 Question 98 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 98
Topic #: 2

[All CIMAPRA17-BA3-1 Questions]

The following are extracts from CD's financial statements for the year to 31 December 20X2:

What is the return on capital employed percentage (ROCE) for CD for the year ended 31 December 20X2?

A28 0%

B30 5%

C33.9%

D25.2%

Show Suggested Answer

Suggested Answer: C

by Margret at Sep 19, 2024, 03:32 PM

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Ming

8 months ago

Just checked, ROCE is calculated as EBIT/Capital Employed.

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Howard

8 months ago

Definitely leaning towards option B!

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Vernice

8 months ago

33.9% seems too high, right?

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Christiane

8 months ago

I think it's around 30.5%, but not sure.

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Bettina

9 months ago

ROCE is crucial for assessing profitability!

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Isadora

9 months ago

I’m really unsure about how to interpret the capital employed here. Did we include current liabilities or just long-term debt?

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Dudley

9 months ago

I practiced a similar question last week, and I think the ROCE was around 33%. I wonder if that’s the same for this one.

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Albina

9 months ago

I think the answer might be around 30%, but I can't recall the exact figures from the extracts. I hope I remember the calculations correctly!

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Audria

9 months ago

I remember we calculated ROCE in a practice question, but I’m not sure if I got the formula right. Was it operating profit divided by capital employed?

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Emiko

9 months ago

I think I've got a good handle on this. The key is to focus on the ROCE formula and make sure I'm using the right numbers from the financial statements.

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Beckie

9 months ago

I'm feeling a bit lost here. The question and information provided don't seem to match up very well. I'm not sure how to proceed.

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Kristeen

9 months ago

This looks straightforward enough. I just need to plug the numbers from the financial statements into the ROCE formula and do the calculation.

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Kristal

9 months ago

Hmm, I'm a bit unsure about how to approach this. The financial statement information seems relevant, but I'm not sure exactly how to use it to calculate the ROCE.

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Lorrine

10 months ago

Okay, let's think this through step-by-step. I'll need to calculate the ROCE using the formula provided in the question.

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Chery

2 years ago

A return of 33.9%? Don't mind if I do! C is the answer, no doubt about it.

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Rene

2 years ago

I think so too. It shows that CD is using its capital efficiently.

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Jacinta

2 years ago

I agree, C is the correct answer. That's a pretty good return on capital employed.

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Andree

2 years ago

Haha, I bet the person who wrote this question was having a good laugh. But I'm going with C, 33.9% is the winner!

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Delmy

2 years ago

Definitely C. 33.9% is the way to go here. The numbers just add up, you know?

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Leatha

2 years ago

Let's go with C then, 33.9% seems like the most logical option.

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Loreta

2 years ago

I'm not sure, but I think C is the best choice based on the financial statements.

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Moon

2 years ago

I agree, the numbers do seem to add up for option C.

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Devora

2 years ago

I think C is the correct answer. The ROCE percentage is 33.9%.

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Giovanna

2 years ago

Hmm, I think the answer is C. 33.9% seems to be the correct return on capital employed based on the financial information provided.

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Sena

2 years ago

I think so too, the ROCE percentage of 33.9% makes sense.

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Tammi

2 years ago

I agree with you, option C seems to be the most accurate.

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Diane

2 years ago

I'm not sure, but I think the return on capital employed percentage (ROCE) can be calculated using the formula: (Operating Profit / Capital Employed) x 100. So, I would go with C) 33.9% as well.

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Raylene

2 years ago

I agree with Rebbeca, C) 33.9% seems like the correct answer based on the financial statements provided.

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Rebbeca

2 years ago

I think the answer is C) 33.9%

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