CIMA - C03 Fundamentals of Business Mathematics: Study Text by Bpp Learning Media

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3 3 (a) 7 3 343 ⎛ 1⎞ ⎛7⎞ ⎜2 ⎟ = ⎜ ⎟ = 3 = 27 3 ⎝ 3⎠ ⎝3⎠ (b) ⎛ 2⎞ ⎜5 ⎟ ⎝ 5⎠ −4 ⎛ 27 ⎞ =⎜ ⎟ ⎝ 5 ⎠ −4 = 1 ⎛ 27 ⎞ ⎜ ⎟ ⎝ 5 ⎠ 4 = 1 54 625 = 4 = 4 531 ,441 27 27 4 5 Part A Basic mathematics ⏐ 1a: Basic mathematical techniques 21 FAST FORWARD The main rules to apply when dealing with powers and roots are as follows. • 2x × 2y = 2 x + y • 2x ÷ 2y = 2 x – y • (2x)y = 2x × y = 2xy • x0 = 1 • x1 = x • 1X = 1 • 2–x = • 3 ⎛ 1⎞ ⎛3⎞ ⎜1 ⎟ = ⎜ ⎟ = x 2 2 2 ⎝ ⎠ ⎝ ⎠ x 1 2x x x Question Powers Work out the following, using your calculator as necessary.

D) Overheads were $6,000 per month in 20X5, rising by 5% in 20X6. (e) Opening cash is an overdraft of $7,500. (f) Dividends: $10,000 final dividend on 20X5 profits payable in May. (g) Capital purchases: plant costing $18,000 will be ordered in January. 20% is payable with order, 70% on delivery in February and the final 10% in May. 1 Headings and layout The first step is to put in the various headings required for the cash flow projection. At this stage, your spreadsheet might look as follows.

C) Purchases are equal to cost of sales, set at 65% of sales. (d) Overheads were $6,000 per month in 20X5, rising by 5% in 20X6. (e) Opening cash is an overdraft of $7,500. (f) Dividends: $10,000 final dividend on 20X5 profits payable in May. (g) Capital purchases: plant costing $18,000 will be ordered in January. 20% is payable with order, 70% on delivery in February and the final 10% in May. 1 Headings and layout The first step is to put in the various headings required for the cash flow projection.

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