M2 OAES Corrections

NEED CORRECT ANSWERSSEE ATTACHED DOCUMENT FOR ORIGINAL FORMATTING (INCORRECT ANSWERS ARE UNDERLINED & HIGHLIGHTED IN YELLOW)Q6-3: A business has the following balances in its financial records: Income tax £30,000; Selling & administration expenses £80,000; Revenue £350,000; Interest expenses £15,000; Cost of Sales £190,000. Which of the following is correct?Question options:Gross profit   £160,000; Operating profit £80,000; Net profit after tax £35,000Gross profit   £80,000; Operating profit £65,000; Net profit after tax £35,000Gross profit £160,000; Operating profit £65,000;   Net profit after tax £30,000Gross profit   £80,000; Operating profit £65,000; Net profit after tax £35,000Q6-6: ABC buys a smaller company XYZ for a negotiated price of £1 million. XYZ’s assets are valued at £750,000. Assuming goodwill is amortized over 5 years, the value of goodwill in ABC’s Statement of Financial Position at the end of the third year after acquisition will be:Question options:£100,000£300,000£150,000£400,000Q7-1: The difference between ROI and ROCE ratios is due to:Question options:Interest, tax   and long-term debtTax and   shareholders’ fundsLong-term debt and shareholders’ fundsInterest and   long-term debtQ7-2: Use the following information extracted from ABC’s Income Statement and Balance sheet and match the item with the correct calculation.Sales £4,200,000; Gross profit £2,700,000; Receivables £630,000; Payables £275,000; Inventory £300,000. ABC calculates its financial ratios based on being open for business 6 days per week for 50 weeks per year.__3__5__2__55__1__451.ABC’s days’ sales outstanding2.ABC’s inventory turn3.ABC’s days’ payables outstandingQ7-3: A company has capital employed of €1,000,000 and generates a profit after tax of €300,000. The change in return on investment between a Balance Sheet with 60% debt and one with 40% debt is:Question options:From 43% to 60%From 75% to   50%From 50% to   75%Q8-2: In a manufacturing business, the completion of production results in the following flow of costs for inventory:Question options:Decrease raw materials and increase finished   goodsDecrease work   in progress and increase cost of salesDecrease work   in progress and increase finished goodsDecrease   finished goods and increase cost of salesQ8-3: A business purchases inventory stock on four separate occasions. Purchased 3,500 units at a total cost of €8,050; Purchased 3,000 units at a total cost of €7,110; Purchased 4,000 units at a total cost of €9,600; and Sold 5,995 units at a total price of €24,760. Each purchase was completed in the order provided within the same period. Match the inventory method with the correct cost of sales and the correct value of inventory.__3__€13,963__2__€4,082__4__€3,896.75__1__€14,148.201.weighted average method for cost of sales2.first in-first out method for cost of sales3.weighted average method for the value of     inventory4.first in-first out method for the value of     inventoryNEED A REFERENCE PAGE