1. Working Effectively in Accounts and Finance Calculations & Communication

2. Aims of the Session Rounding Fractions Percentages Averages Ratios
Formulas
VAT
Margin & Mark up (level 3)

3. M-athletics

4. Whole Figure Rounding What is rounding?
What would be rounded to a whole figure?
What would the following be rounded to the nearest whole number?
Makes large unwieldy figures more manageable, by altering them. 13
Look at the figure AFTER the one you need to round to, so in this case 8, if this is 5 or higher round up to the next whole number, 4 or lower would be 12.

5. Decimal Point Rounding
Similar to whole figure, look to the figure after you’ve been asked to round to.
For example: to 2 decimal places.
= 12.86
Amount of places
to round to
Amount of places to round to 3 5 4 1 9
Whole number 2 7

6. Answers 3 5 4 1
896.0 9
Whole number
346
45.593 2
785.00 7
73.346

7. Fractions What is a fraction? Expressed as: So a slice of cake is?
Improper fractions. 1 2 1 10
A numerical quantity that is not a whole number,
Expressed as one number over another, the bottom number will be total of the parts of the whole and the number on the top the amount that’s relevant.
Improper fractions or top heavy ones, to convert them into proper ones divide the numerator by the denominator, write down the amount left over and put this over 10 ie...

8. Percentages Similar to fractions.
To find a percentage from a fraction use your calculator to divide the top number by the bottom multiply by 100
4/5 = 0.8 x 100 = 80%
As an increase, you are told that the bus fare (£3.60) is going up by 5%.
Divide 3.50 by 100 to find out 1% then multiply by 5 and add it on to the original amount.
Or multiply by 1.05 – 1 for the initial amount and 0.05 for the increase.
Percentages of figures…
A proportion or share in relation to the whole.
Both will give you the same answer 18p or £3.78

9. Percentages Monthly Usage Monthly Usage % March 35,375 33.66% April
36,834
35.04%
May
32,901
31.30%
105,110
Add up the usage figures, divide the monthly figure by the total.

10. Test Your Knowledge May’s figures are 5% higher than March’s.
Monthly Usage
Monthly Usage %
March
35,880
April
May
May’s figures are 5% higher than March’s.
April’s figures are 15% lower than May’s.
Round the month calculations to nearest whole number.
Calculate the monthly totals as a percentage of the total usage for the quarter, to two decimal places.

11. Test Your Knowledge Answers
Monthly Usage
Monthly Usage %
March
35,880
33.98%
April
32,023
30.33%
May
37,674
35.68%
105, 577

12. Percentages Differences
Work out the difference between the 2 figures and then divide this by the original figure, multiply by 100:
For example:
Target sales are 10,000 actual sales are 10,900 what is the percentage difference?
10,900 – 10,000 = 900
10,900 -
10,000 =
900
0.09 X
100
= 9%

13. Test Your Knowledge Negative figures ( ) Target Production
Actual Production
Actual production in the excess of the target %
Dolls’ Heads
4,500
4,095
Dolls’ Hair
500kg
750
Dolls’ Legs
9000
10350
Negative figures ( )

14. Test Your Knowledge Negative figures ( ) Target Production
Actual Production
Actual production in the excess of the target %
Dolls’ Heads
4,500
4,095
405 /4500 x 100 = (9%)
Dolls’ Hair
500kg
750
250/500 x 100 = 50%
Dolls’ Legs
9000
10350
1350/9000 x 1000 = 15%
Negative figures ( )

15. Averages Mean Mode Median The range (not a big shop)
Mean is adding up the numbers and dividing it by the amount.
Mode is the most frequently appearing number
Median the number in the middle
Put the numbers in order then work out, the median with even numbers, add the 2 middle ones together and then divide by 2.
The range is the difference between the lowest and the highest number.

16. Test Your Knowledge!
Find the mean, mode, median and range of these figures:
Round answers to nearest whole number
9, 3, 3, 44, 17 , 17, 44, 15, 15, 15, 27, 40, 8, 9
9, 3, 44, 17, 15, 10, 4, 44, 17, 17, 16, 10, 9, 59, 17
60, 9, 3, 6, 2, 90, 3, 61, 90, 31, 45, 90, 4, 30
43, 58, 39, 20, 43, 61, 83, 92, 73, 13, 43, 101
76, 43, 21, 56, 24, 42, 73, 26, 42, 67, 1, 56, 42

17. Ratios Numbers expressed in relation to each other.
For example when making pastry you mix 2 parts flour to 1 part fat, the ratio is expressed flour to fat 2:1.
Similar to fractions as they can be simplified by finding a common factor.

18. Test Your Knowledge
A newspaper has 12 pages of sport and 8 of TV, what is the ratio of sport to TV in its simplest form?
A class has 15 girls and 12 boys, what is the ration of girls to boys in its simplest form?
Jamie has £75 and Cersei has £120, what is the ration of Jamie’s money to Cersei’s in its simplest form.
3:2
5:4
5:8

19. Re-jigging Formula You will be asked to re-jig formula For example:
assets - liabilities = capital
To find out assets you will add liabilities to both sides of the equation.
assets - liabilities + liabilities = capital + liabilities
better expressed as
assets = capital + liabilities
You’ve already done this

20. Cost of Sales (Level 3)
Cost of sales = opening stock + purchases - closing stock.
Allocate each item a number:
Check by doing the simple maths first.
Opening stock = £19,402
Closing stock = £16,497
Cost of sales = £42,864
What's the value of the purchases through out the year? 5 = 3 + 4 - 2
Cost of Sales
Opening stock
Purchases
Closing Stock
Sarah’s idiots guide, remember the formula in one way:
Allocate each part a number that you know adds up, that way you can do a sanity check that you’re correctly adding and taking away the correct number.

21. Answer 5 = 3 + 4 - 2 Cost of Sales Opening stock Purchases
Closing Stock
42,864
19,402 ?
16,497 4 = 5 - 3 + 2
Purchases
Cost of sales
Opening stock
Closing Stock
39,959
42,864
19,402
16,497

22. VAT AAT figures are either VAT exclusive or inclusive.
Exclusive (net) add 20% on.
Goods exclusive of VAT worth £30 what is the VAT?
Good inclusive of VAT are 120% of the net price.
30 x 20% = £6
£30 + £6 = £36
36 ÷ 120 = 0.3
0.3 x 20 = £6
36 – 6 = 30
Don’t forget the inclusive figures are 120% of the net, which you are trying to work out.

23. Lesson Recap
Will be asked simple calculation in the WEAF exam.

24. Oombrella & Other Exercises