CPA Business Data Analytics – December 2022 Past Paper & Answers
Unit: Business Data Analytics
25 QuestionsQuestions
Download CPA Business Data Analytics December 2022 past paper with detailed answers and marking scheme. This paper is based on KASNEB examination standards and is ideal for revision and exam preparation.
Access the full paper online, download the PDF, or study offline. Each question includes step-by-step solutions to help you understand key concepts in Business Data Analytics.
Which of the following choices is correct?
A. The entire statement is true
B. Only the statement on conceptual data model is true
C. Only the statement on logical data model is true
D. Only the statement on physical data model is true
A. Data analysis
B. Data science
C. Statistical inference
D. Predictive modelling
A. Obtaining data and information from different sources, processing and storing for future reference
B. Fixing or removing incorrect, corrupted, incorrectly formatted data and information
C. Collecting data and information about business requirements from stakeholders and end users
D. Creating a visual representation of either a whole information system or parts of it to communicate connections between data points and structures
(i) Data mining relates to turning raw data into useful information.
(ii) Data mining using built-in algorithms should guarantee a result.
Which of the following choices apply?
A. The two statements are true
B. Only the first statement is true
C. Only the second statement is true
D. None of the statements is true
A. Veracity
B. Value
C. Variability
D. Variety
A. Number of children
B. Height of children
C. Behaviour of children
D. Test scores of children
By carrying out risk management and cash budgeting, she is applying:
A. Predictive analytics for risk management and cash budgeting
B. Predictive analytics for risk management and prescriptive analytics for cash budgeting
C. Predictive analytics for cash budgeting and prescriptive analytics for risk Management
D. Prescriptive analytics for risk management and cash budgeting
A. Thinking through the potential impacts of our data use on all interested parties
B. Sustainability of the data over time
C. Transparency and inclusivity of the data
D. Data benefiting both the business and customers
A. Azure
B. AWS
C. SQL
D. Alibaba Cl
A. Binary
B. Quartenary
C. Unary
D. None of the above
A. Scatter Graph
B. Bubble Chart
C. Column Chart
D. Line Chart
A. Line
B. Bar
C. Scatter
D. Histogram
A. Notify the supervisory authority within 48 hours of the incident whether or not it poses a risk to the organisation and affected individuals
B. Notify the supervisory authority within 48 hours of the incident, only if it poses a risk to the organisation and affected individuals
C. Notify the supervisory authority within 72 hours of the incident whether or not it poses a risk to the organisation and affected individuals
D. Notify the supervisory authority within 72 hours of the incident, only if it poses a risk to the organisation and individuals
A. Data bagging
B. Data dredging
C. Data merging
D. Data pooling
EXCEPT on the:
A. Sources of data
B. Data collection
C. Data analysis
D. Assumptions
A. Process data lawfully
B. Maximise data collection
C. Ensure data quality
D. Limit data processing
A. Providing access to all data to specified employees
B. Providing access to selected data to all employees
C. Restricting access to all data for specified employees
D. A database management system
A. Numpy
B. Git
C. Scipy
D. Loft
A. Data management tool
B. Data cleaning tool
C. Data visualisation tool
D. Data presentation tool
A. =sum (A1:H20)
B. =sum (A1:A20)
C. =sum (A1;H20)
D. =sum (A:A20)
| Sepetuka Limited Statement of profit or loss extract for the year ended 30 September: |
| Year | 2019 | 2020 | 2021 | 2022 |
| Sh.“000” | Sh.“000” | Sh.“000” | Sh.“000” | |
| Sales | 54,000 | 64,800 | 81,000 | 95,580 |
| Cost of sales | (32,400) | (32,400) | (32,400) | (38,232) |
| Gross profit | 21,600 | 32,400 | 48,600 | 57,348 |
| Operating expenses | (10,800) | (10,125) | (21,094) | (14,934) |
| Operating profit | 10,800 | 22,275 | 27,506 | 42,414 |
| Depreciation | (600) | (800) | (750) | (900) |
| Profit before interest and tax | 10,200 | 21,475 | 26,756 | 41,514 |
| Finance costs | (5,000) | (7,000) | (9,000) | (8,000) |
| Profit before tax | 5,200 | 14,475 | 17,756 | 33,514 |
| Income tax expense | (1,560) | (4,343) | (5,327) | (10,054) |
| Profit after tax | 3,640 | 10,132 | 12,429 | 23,460 |
| (a) | Calculate and interpret the following ratios: | |
| (i) | Annual revenue growth rates for years 2020, 2021 and 2022. | |
| (ii) | Three years cumulative average growth rate (CAGR) for year 2022. | |
| (iii) | Effective tax rate for the period 2019 to 2022. | |
| (b) | Now assume the following for Sepetuka Limited: | |
| 1. | The revenue growth rate for the first year forecast is the 2022 CAGR. This is expected to reduce by 2% annually | |
| 2. | Gross profit margin for the first year of the forecast is the 3-year average for the period from year 2020 to year 2022. This is expected to reduce by 2% annually until the last year of the forecast subject to a minimum of 50%. | |
| 3. | Operating expense ratios are modelled as 3-year averages for the period from 2020 to 2022. These are assumed to remain constant over the forecast period. | |
| 4. | Depreciation to revenue ratio is assumed to remain constant as the 3-year average for the period 2020 to 2022. | |
| 5. | Finance costs are expected to reduce steadily as the loans are repaid. Use the reduction rate in year 2022 over the forecast period. | |
| 6. | Income tax expense is calculated as the historical effective tax rate. | |
| Required: Prepare five-year forecast statements of profit or loss for Sepetuka Limited from year 2023 to year 2027. | ||
Additional information:
| 1. | Trex is estimated to have a shelf life of five years commencing year 2023 | |||||||||||||||
| 2. | Trex will require the purchase of a machine at a cost of Sh 100 million at the end of year 2022, after which the machine will be sold for Sh.20 million at the end of the fifth year. | |||||||||||||||
| 3. | The selling price and cost structures of Trex (for the first year 2023) with expected inflation factors are as follows:
| |||||||||||||||
| 4. | The company is eligible for capital allowances (depreciation for tax purposes) at the rate of 25% on reducing balance. | |||||||||||||||
| 5. | At the end of the project when the machine is sold, any gain or loss on disposal will be considered for tax. | |||||||||||||||
| 6. | The tax rate on income and capital allowances is at the rate of 30% per annum. Assume that the tax for a given period is paid in the same year. | |||||||||||||||
| 7. | The project will require an initial investment in working capital of Sh.20 million which will be increasing by Sh.5 million at the end of each year to cater for general inflation. The whole amount together with the periodic increase will, however, revert at the end of the project. | |||||||||||||||
| 8. | Experience has shown that demand for new products is not exactly known in year one but tends to be stable thereafter. Jane has come up with the following estimates of demand for year 2023
Jane expects an initial increase in demand in year 2024 of 25% then a decline of 50% in year 2025. This level will remain the same till the end of the project | |||||||||||||||
| 9. | Vuma Limited has a real weighted average cost of capital (WACC) of 8% and general inflation is expected to be at 4%. Due to the risk of the project, Jane feels that the relevant nominal WACC should be increased by 3% |
| Required: Compute the following (a). The weighted average cost of capital to be used to evaluate the project. (b). The relevant cash flows over the project period. (c). The net present value (NPV) of the project. Advise on the viability of the project. | |
| Date | Cash flow (Sh.) |
| 1 January 2023 | (10,000,000) |
| 30 June 2023 | 2,750,000 |
| 31 July 2024 | 4,250,000 |
| 30 September 2025 | 3,250,000 |
| 31 December 2026 | 2,750,000 |
| Required: | ||
| (a) | (i) | Calculate the NPV and XNPV of the project and hence determine whether the project is viable. |
| (ii) | Highlighting the cause of the difference between NPV and XNPV, explain which one you would use in your analysis and why. | |
| (b) | (i) | Calculate the IRR and XIRR of the project and hence determine whether the project is viable. |
| (ii) | Highlighting the cause of the difference between IRR and XIRR, explain which one you would use in your analysis and why. | |
| Sh.“million” | Sh.“million” | |
| Revenue | 473 | |
| Cost of sales | (229) | |
| Gross profit | 244 | |
| Gain on financial assets at fair value | 5 | |
| Investment income | 6 | |
| 255 | ||
| Other expenses | ||
| Administration expenses | 48 | |
| Distribution costs | 76 | |
| Finance costs | 17 | (141) |
| Profit before tax | 114 | |
| Income tax expense | (47) | |
| Profit after tax for the year | 67 |
| Sh.“million” | Sh.“million” | |||
| Assets: | 2022 | 2021 | ||
| Non-current assets: | ||||
| Property, plant and equipment | - | 327 | - | 264 |
| Intangible assets | - | 40 | - | 50 |
| Financial assets through other comprehensive income (OCI) | - | 22 | - | 10 |
| 389 | 324 | |||
| Current assets: | ||||
| Inventory | 123 | - | 176 | - |
| Trade receivables | 95 | - | 87 | - |
| Financial assets at fair value | 65 | - | 30 | - |
| Cash and cash equivalents | 29 | 312 | 0 | 293 |
| Total assets | 701 | 617 | ||
| Equity and liabilities: | ||||
| Equity: | ||||
| Ordinary share capital (Sh.10 each) | - | 230 | - | 150 |
| Share premium | - | 30 | - | 0 |
| Revaluation reserve | - | 36 | - | 67 |
| Finacial assets through OCI - equity reserve | - | 2 | - | 0 |
| Retained profits | - | 121 | - | 91 |
| 419 | 308 | |||
| Non-current liabilities: | ||||
| 10% convertible loan stock | - | 100 | - | 150 |
| Current liabilities: | ||||
| Bank overdraft | - | - | 22 | - |
| Trade payables | 156 | - | 100 | - |
| Interest payable | 7 | - | 3 | - |
| Income tax payable | 19 | 182 | 134 | 159 |
| Total liabilities | 282 | 309 | ||
| Total equity and liabilities | 701 | 617 |
| 1. | Property, plant and equipment held by Bamuda Limited are items of plant and equipment and freehold premises. During the year ended 30 June 2022, items of plant and equipment which originally cost Sh.40 million were disposed of resulting in a loss of Sh. 6 million charged in administrative expenses. These items had a net book value of Sh.28 million as at the date of disposal. |
| 2. | Depreciation charge for the year ended 30 June 2022 was Sh.43 million. |
| 3. | Sh.50 million of convertible loan stock was converted to Sh.50 million ordinary share capital at par during the year ended 30 June 2022. |
| Month | Quantity | Production cost |
| (year 2021) | produced (units) | Sh. |
| January | 150,000 | 18,000,000 |
| February | 120,000 | 14,000,000 |
| March | 200,000 | 23,000,000 |
| April | 170,000 | 19,000,000 |
| May | 120,000 | 16,000,000 |
| June | 250,000 | 30,000,000 |
| July | 220,000 | 27,000,000 |
| August | 90,000 | 11,000,000 |
| September | 180,000 | 24,000,000 |
| October | 300,000 | 32,000,000 |
| November | 280,000 | 29,000,000 |
| December | 350,000 | 36,000,000 |
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