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Yearly Income
1. Other income is expected to drop by 70% in Year 3 and exceptional costs are predicted to double. If
turnover changes as from Year 1 to Year 2, and cost of sales and overheads remain as for Year 2, what will the
percentage change be from Year 1 to Year 3 in earnings before income tax?
A. A decline of 55%
B. A decline of 17%
C. A decline of 7.2%
D. An increase of 3.8%
E. An increase of 11.3%
2. If the tax bill is 35% and the trends for Year 1 to Year 2 continue into Year 3, what will the tax bill be in Year
3 in millions?
A. 3.42
B. 3.43
C. 3.61
D. 3.76
E. 3.94
3. If cost of sales, overheads, other income and earnings before income tax changed between Year 0 to Year 1
at the same rates as from Year 1 to Year 2, and if there were no exceptional costs in Year 0,what was the
turnover in Year 0 in millions?
A. 41.5
B. 49.5
C. 49.9
D. 51.2
E. 63.1
4. If overheads and earnings before income tax change by the same percentage as between Year 1 and Year 2,
while all of the other costs and income remained the same as in Year 2, what will the approximate turnover be
in Year 3 (in 000s)?
A.51,240
B.52,180
C.53,380
D.54,270
E. 55,210
