Working Capital: Receivables

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  1. Avatar of yaasir786 yaasir786 says:
    May 22, 2013 at 8:08 pm

    can someone explain to me the savings in interest part?? how did he calculate that??? credit sales are $2,500,000. so isnt receivables(current) supposed to be $2.5M????? how come it is $500,000

    • Avatar of johnmoffat johnmoffat says:
      May 22, 2013 at 8:59 pm

      The credit sales are indeed $2.5M during the year.

      But selling 2.5M during the year does not mean that 2.5M is owing to us at the end of the year – obviously most of the customers will have already paid !!!!!

      On average, debtors are taking 2.4 months to pay. So at any time, we are owed 2.4 months worth of sales. The sales per month are 2.5M/12, so 2.4 months worth of sales is 2.4 x 2.5M/12 = 0.5M. On average therefore we would expect receivables to be 500,000 throughout the year.

  2. Avatar of areej786 areej786 says:
    May 14, 2013 at 2:03 am

    i couldn’t follow 2/12 apportionment of 70% advances made by the factor…. Would u plz help me in that .. Thanks

    • Avatar of johnmoffat johnmoffat says:
      May 22, 2013 at 8:54 pm

      The 2/12 is because the factor is taking 2 months to collect the debts, but is giving us 70% of the money immediately. So they are charging 2 months interest at 18% p.a.. The 2/12 is to calculate 2 months interest.

  3. Avatar of Sandy Sandy says:
    May 2, 2013 at 8:01 pm

    Hi, Is there any problem… I cannot any lectures. Please help!

  4. Avatar of abujaan abujaan says:
    November 3, 2012 at 11:32 pm

    Dear sir I just need advice from you as F9 contains 50% theory so if I attempt all theoratical questions first to save time because I do not need to think a lot about it and then calculation so I will have more time for numbers.Please suggest if this approach is good or not

    • Avatar of johnmoffat johnmoffat says:
      November 4, 2012 at 11:55 am

      @abujaan, I think it is a good idea to attempt the written parts first.
      Leave the rest of the page in the answer booklet empty because often while you are doing the calculations, other points occur to you and you can always then add them to your answer.

  5. Avatar of enigma266 enigma266 says:
    June 10, 2012 at 8:14 pm

    Ah, scrap that! I have now found it. It has been a long weekend :-)

  6. Avatar of enigma266 enigma266 says:
    June 10, 2012 at 8:12 pm

    I am not sure where to find the question which they are working on. It isnt in the December 2011 revision notes that I can see.

  7. Avatar of jewel086 jewel086 says:
    June 8, 2012 at 9:13 pm

    can i access these f9 videos after june? i realy need them for december exam.i have to sit in december exam…..

  8. Avatar of asa912 asa912 says:
    May 15, 2012 at 11:44 am

    can you please let me know which question ur doing so i can see it too please

  9. Avatar of achiever06 achiever06 says:
    March 27, 2012 at 1:25 pm

    adm, video not working. after several trials.

  10. Avatar of admin admin says:
    March 23, 2012 at 4:36 pm

    reload the page, or try later, it seems like, the server is overloaded..

    after few tries I hope it will work for you

  11. Avatar of achiever06 achiever06 says:
    March 23, 2012 at 3:39 pm

    video not working, adm any problem with it?

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