• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Profit calculation for accounts

L

Leala

Member
Subject G - april 1998 - Paper 1 - Q21

How is the profit figure arrived at here - i can see the formula but I cant get the answers.

Part two, c

how is the Return on capital found?

Thanks
 
ER says:
Return on Capital Employed = Profit / Free Reserves
Profit = Earned Premium − Incurred Claims − Increase in
APUR − Expenses + Investment income
A = −26/16 = −162.5%, B = 425/840 = 50.6%,
C = 50/160 = 31.3%

so for example A:

-26 = 60*.9 -60-20-5+5
 
You must log in or register to reply here.
Back
Top