Business 9609 · AS & A Level · Operations strategy

Operations strategy — practice question

(a)[4]

Refer to Appendix 1 and the other information. Calculate the gearing ratio after the takeover of VantoU.

(b)[4]

Refer to lines 24–28. Calculate the difference between the existing and proposed annual depreciation expense of the IT equipment to be purchased in 2018.

(c)[12]

Discuss the importance of the data in Appendix 1 for KKS’s stakeholders.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “State the correct formula for gearing ratio as non-current liabilities / (non-current liabilities + shareholders' equity) or non-current liabilities / capital employed.” …

Full mark scheme, point by point
Step-by-step worked solution
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