Business HL (FE2024)
Paper 2
Questions Attempted 0/1
Business HL (FE2024)
Available time 20 Minute(s)
01

Copper Fibro (CF)

Paper 2
:
Available time 20 Minute(s)
01. Question
Level Medium
Maximum Mark 10
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Copper Fibro (CF) manufactures copper wires for industrial use. The company is highly profitable and its corporate tax rate is 20 %. CF is forecasting major capital expenditure for 2019.

Table 1: Selected forecast financial information for the year ending 31 December 2019

Table 2: Annual cash flow forecast for the year ending 31 December 2019

(a). Define the term capital expenditure.

[Marks: 2]

(b). Using Table 1, calculate for CF :

(i) gross profit (X);

[Marks: 1]

(ii) tax (Y).

[Marks: 1]

(c). Using Table 1 and your calculations in (b)(i) and (ii), construct a profit and loss account for CF.

[Marks: 2]

(d). Using Table 2, calculate the net cash flow (Z) for CF for 2019 (show all your working).

[Marks: 2]

(e). Explain the difference between profit and cash flow.

[Marks: 2]
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