I am having trouble with the following:
Yearly Income (000)
Cost of Sales: -33,000
Exceptional Costs: -45
Other Income: 180
Earnings before Income Tax: 10,320
Cost of Sales: -35,310
Exceptional Costs: -38
Other Income: 600
Earnings before Income Tax: 9,624
Q1) 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?
ANS: 41.5, 49.5, 49.9, 51.2 or 63.1
Q2) Other income is expected to drop by 70% in Year 3 and exceptional costs are predicted to double. IF turnover changes as from Y1 to Y2, and cost of sales and overheads remain as for Y2, what will the % change be from Y1 to Y3 in earnings before income tax?
ANS: fall 55%, fall 17%, fall 7.2%, rise 3.8% or rise 11.3%
The problem I am facing is calculating turnover in the first place!
Your help will be most appreciated!