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ACCA F9 lectures ACCA F9 notes
November 29, 2012 at 8:14 pm
I have computed the savings as follows: actually we have managed to reduce our receivables only for 40% of the receipts (20% were already paying within 30 days); this means that we will obtain 40% of the sales of 20 mio 30 days earlier than normal, hence savings would be: 40% x 20 mio x 15% x 30/365 = 98k (difference to the result in the book is round 20k). Could you please advise as to where I am wrong? Thanks!
November 23, 2012 at 1:02 pm
Good Work Opentution,,, Just Great ! but what about payables i don’t have any grip on that ..
November 22, 2012 at 5:39 pm
Very nice ….. i have learn a lot from this lecture …
Can there be a question whether to factor or to offer discount , as far as i have done only question deciding whether to offer or not the discount or whether to factor or not …? Thank you
November 12, 2012 at 9:08 pm
Dear sir, u dnt talk about payables and i found questions about it and also there is something called APR it is a formula and i have different examples and after listening to the lect still i cant solve it so please reply what i can do.
November 8, 2012 at 7:45 am
There is a formula in my book
It is percentage of cost of the discount = 1-[100/100-2] x 365/20
Is it just another method of finding out if settlement discount should be taken? or is it something else ?
John Moffat says
November 8, 2012 at 7:57 pm
@amal123, It is the same as what I have done in my lecture!
(Although obviously it is based on days and not months, and it is only correct if the discount is for paying 20 days earlier than otherwise)
September 13, 2012 at 11:38 pm
August 5, 2012 at 7:36 am
after listening to the tuition i tried answering the following question but im not getting the correct answer. can you please help me out.
paisley co has sales of $20 million for the previous year, receivables at the end of $4 million and the cost of financing receivables is covered by an overdraft at the interest rate of 12% p.a. it is now considering a cash discount of 2% for payment of debts within 10 days. should it be introduced if 40% of customers will take up the discount??
my answer was cost of discount $160 000 and savings p.a $261699
4m/20m x 365= 73 days
73 days x 60%= 43.8 days
20m x 43.8/365= $2.4 m
10 x 40%= 4
4/365 x 20m= $219178
2180822x 12%= 261699
cost of discount 20m x 2% x 40%= $160 000
savings p.a= $261699
the answer in the book is savings of $165699
can you please tell me where is my mistake.
thanks in advance
August 6, 2012 at 8:18 pm
@chicababes1991, Currently receivables are 4M (we assume that they are at this level throughout the year)
The new receivables will be :
not taking discount: 60% x 73/365 x 20M = 2.4M
taking discount: 40% x 10/365 x 20M = 219,178
So new recbles in total = 2400000 + 219178 = 2619178
So interest saving is 12% x (4M – 2619178) = 165699
(current recbles are 4M throughout the year. In future they will be 2619178 throughout the year. So the interest saving is 12% of the difference,)
Hope that helps.
August 7, 2012 at 10:05 am
@johnmoffat, thank you so much sir
April 28, 2012 at 9:58 pm
perfect, thank you
April 25, 2012 at 1:59 pm
Example 2,60% customers take advantage of the discount, precisely it makes more sense if it is 60% of sales instead of customers.
July 13, 2012 at 12:27 pm
@wendy2001, What you say is true, but the examiner usually words it in the same way as me
March 30, 2012 at 9:17 am
I am facing a challenge of not managing to download the video.
March 30, 2012 at 9:31 am
@undisputed, Videos are for watching on line, not downloading
March 9, 2012 at 3:23 pm
rely nice…he hs drilled it in our brain:)
February 11, 2012 at 5:18 pm
The lecturer has worked examples 4 and 5 or you can check the answers in the back of notes.
August 14, 2012 at 5:17 pm
@tameablebunchy, hi can you please tell me where the lecturer has worked out examples 4 and 5.
August 14, 2012 at 7:51 pm
@winwithascent, Please look at the answer to examples in the back of the lecture notes. you will see the worked example there.
February 11, 2012 at 4:37 pm
Has anyone worked out examples 4 and 5? Just want to check if my calculations are correct
August 14, 2012 at 7:52 pm
@vbalande, Check the answer section in the back of the lecture notes.
November 6, 2011 at 3:15 pm
very nice, I understand the concept now..
October 8, 2011 at 7:38 pm
Calculation of the new receivables after ofering the discount in example 2 should use 99 % of the $20m (as opposed to $20m) multiplied by 54/365 as that is the new sale p.a.. Any thoughts? Thank you
February 1, 2012 at 5:08 pm
If I understood it correctly you are trying to ascertain whether its worth giving the discount and you have to consider the full receivables, I believe the only time you use a percentage is if the question had said receivables is 20m and we have already collected 1m. Commentst anyone.
September 26, 2011 at 8:12 pm
September 5, 2011 at 5:25 pm
this session was very productive
May 27, 2011 at 2:10 pm
this is the only time i have really enjoyed my F9 through the lectures by John Moffat because i understand the concept behind and its now easier for me to tackle most questions
Thank you May God bless you
April 10, 2011 at 8:02 pm
the decision is to employ factor not to offer discount.Really enjoying these.wil conquer F9 this time around
March 31, 2011 at 10:19 pm
help, video stops at 7.38, is there a problem?
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