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CIMAPRA19-F01-1 Exam - Topic 4 Question 127 Discussion

Company RET's financing activities are exactly 35% of their operating activities expenses each month. Below is a list of Company RET's total expenses for this month:Inventory supplies purchased: 145,000Employee wages: 65,000Purchase of a shop: 105,000Dividend payments: ??Cash repayments on loan: 61,000What is company RET's total dividends payment for this month?
A) 12,500
B) 49,250
C) 131,600
D) 26,500

CIMAPRA19-F01-1 Exam - Topic 4 Question 127 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 127
Topic #: 4
[All CIMAPRA19-F01-1 Questions]

Company RET's financing activities are exactly 35% of their operating activities expenses each month. Below is a list of Company RET's total expenses for this month:

Inventory supplies purchased: 145,000

Employee wages: 65,000

Purchase of a shop: 105,000

Dividend payments: ??

Cash repayments on loan: 61,000

What is company RET's total dividends payment for this month?

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Suggested Answer: A

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I feel like I might be overthinking this. Should we just calculate 35% of the total expenses directly? I hope I remember the right formula!
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Shaunna
5 days ago
If financing activities are 35% of operating expenses, then I guess we need to find that total first. But what if the shop purchase counts as an operating expense?
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Corinne
10 days ago
I think we need to add up all the expenses except for dividends to find the operating expenses. I practiced a similar question last week!
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Yasuko
15 days ago
I remember that financing activities are usually a percentage of operating expenses, but I'm not sure how to calculate the total expenses first.
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