Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › P4 – Bpp – Question 42 – FLY 400
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- November 18, 2014 at 11:19 am #210969
Dear Tutor,
In P4-BPP- Question 42 bart B FCFE is taken 87.2m
I believe this figure is
101.7+31-35.5-10=87.2Can you explain why each of them isn’t included in FCFE.
or if 87.2 is derived in another way could you explain it please.thank you in advance.
BR,
Shota Giorgadze
November 18, 2014 at 4:02 pm #211031It is the net cash flow from operating activities (210.0), plus the net interest of 1.5, less the tax of 4.1, less the capital expenditure of 120.2. (All the figures are taken from the statement of cash flows)
November 18, 2014 at 5:10 pm #211070Thank you for the answer.
Can you write briefly please why 10 , 35.5 and -31 aren’t included in FCFE.
Thank you in advance.
Br,
November 18, 2014 at 6:56 pm #211087Because none of them will be expected to continue into the future – it is the future FCFE that we are trying to calculate.
November 18, 2014 at 7:25 pm #211102Logic is very clear.
Thank you a lot.
BR,
Shota giorgadze
November 19, 2014 at 4:52 pm #211304You are welcome, Shota 🙂
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