Forums › ACCA Forums › ACCA FM Financial Management Forums › Working Capital in Qu 1 F9
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- November 28, 2013 at 12:19 pm #148271
When working capital is used in Qu 1 it usually is recovered in full in the last year unless the qu specifically states to ‘ignore working capital recovery’.
Dec 10 – Specifically states to ignore working capital recovery
Jun 11 & Dec 11 – Have working capital in the qu and it doesnt say to do anything with the working capital therefore it is automatically recovered in the final year
Jun 13 – Is the exact same as Jun 11 & Dec 11 but yet the examiner does not add back the working capital whereas if you were basing it on Jun & Dec 11 it should have been added back.Can someone please help me as the difference in adding this back or not is the difference in whether it is a poisitive NPV or not.
Thanks
CiaraNovember 28, 2013 at 1:38 pm #148287Ya..I agree.
I was working J13 and went through the solution and noticed that there is no w.c recovery in the examiners answer.
My answer defer from those provided in the M.s specially because of that w.c recovery.
Awaiting for John response to clear the issue.
Thank you. - AuthorPosts
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