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2014 Jun Q2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › 2014 Jun Q2

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 12, 2016 at 3:10 pm #309894
    hahadog
    Member
    • Topics: 5
    • Replies: 5
    • ☆

    Why the FCF didn’t add back the non cash item – Capital Allowances?

    April 13, 2016 at 7:03 am #309952
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54695
    • ☆☆☆☆☆

    Because they have not been subtracted in arriving at the incremental profit (of 10.50 at time 1). They have only been subtracted in the workings of the tax payable (of 0.50 at time 1).

    April 14, 2016 at 8:44 am #310082
    hahadog
    Member
    • Topics: 5
    • Replies: 5
    • ☆

    Thanks!

    One more question on 2014 Jun Q3 (c) – (iv) sales made to Department C

    Why the cash flow of Ndege (Dept B) subtracted this 10% from Dept C?

    April 14, 2016 at 11:06 am #310094
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54695
    • ☆☆☆☆☆

    Because the question says that C is 10% of the profits, and C will be closed.

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