F7 Chapter 10 Questions
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help with calculations to solution 1 will be much appreciated. Thanks
What’s the matter with the workings already shown?
Gross margin is a percentage based on selling price so that’s 10% x $15,000 unrealised profit
Mark up is a percentage based on cost so if it’s 25% on cost that means it’s 25/125 when applied to the sales figure and that means that the unrealised profit is 25/125 x $15,000
OK?
Can you please explain how you apportioned time in question 5?
If the post acquisition activity was double the pre-acquisition activity then if we say pre-acquisition was X then post acquisition must be 2X
Pre-acquisition was 3 months (so 3X) and post-acquisition was 9 months (so 9 * 2X ie 18X)
Total revenue and profits is therefore 21X and pre-acquisition is 3 parts of that whereas post-acquisition is 18 parts of it
OK?
Chapter 10 Q3
Where does 12 come from?
How many months are there in a year?
Hi,
Regarding the Q1 – shouldn’t the sales value DECREASE by unrealized profit amount?
Ok, just see this is re. cost of sales, please ignore the question.
Ok, ignored
Can you help me to find the solution of Q5, please?
sorry forgot to mention -I dont know the answer to Question 3!
help please
Cancel revenue and cost of sales for the full year intra-group trade ( 12 x (30 + 25)) = 660,000 reduction in revenue and cost of sales
Increase cost of sales by the pup (11,250 + 6,000) = 17,250
Combined figure per question was 776,000 + 600,000 = 1,376,000
Reduced by 660,000 intra-group trade
Increased by 17,250 pup
Adjusted combined cost of sales 1,376,000 – 660,000 + 17,250 = 733,250
OK?
hello
could you tell me the answer for this question?
no idea how to get to 733
Need assistance with question 3 as I do not know whether to include the inventory figures whether to use the share purchase amount of 70%
question 5,
pre acq income=x, post acq=2x
pre acq=3month, post acq 9month
thus 3x and 18x total denominator=21x
total post acq income=140*18/21=$120,000
120,000+150,000=$270,000
minus intra trading revenue
bought $25,000 from subsidiary,1/5 sold left=25000*4/5=20000
270,000-20000=$250,000 but answer say $230,000, did i miss sth?
Hi
Can u assist me on question 6.i thought the calculation is (180*6/12)+150..where am i going wrong??
The monthly revenue for the second six months was twice as great than for the first six months
If monthly revenue before acquisition was “x”, then after acquisition it was “2x”
So, for six months there was 6x worth of revenue and for six months there was 2 x 6x worth of revenue.
For the year there was 18x worth of revenue of which 12x was in the post-acquisition period
12/18 x 180 = 120
Add that to the parent’s revenue and you get to 270
Ok?