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Sir,
1)In APX co (Dec 09) d part
It states that trade payables 46% of current liabilities in the current SOFP and 47% of current liabilities in the forecast SOFP.Could you please explain how do we get that figures???
2)In Gorwa co (Dec 08) a) part how do we get floating rate proportion of company’s debt increased from 40% in 2006 to 57% in 2007.
How do we get that figures??
3)In Nugfer Co.(Dec 2010) in a) part under current financial position short term borrowings account for 62% and interest on short term borrowings account for 68% of the finance charges in the income statement.
How do we get the figures??
I will answer your questions, but in future you MUST ask each separate question in a new thread.
The reason is that we do not give ‘private tuition’ free of charge and our answers are to be helpful to other students as well as yourself.First question:
In the current SOFP (given in the question), the payables are 1.9M and the total current liabilities are 4.1 M.
So they are 1.9/4.1 = 46% of the total current liabilities.Next year, (as you can see in the examiners answer) payables are forecast to be 2.49 and total current liabilities are forecast to be 5.36.
So they are 2.49/5.36 = 47%Second question:
In 2006, the total debt is the overdraft of 1600 plus the bonds of 2425 – a total of 4025
It is the overdraft that is at floating rate, so the proportion is 1600/4025 = 40%
It is the same working for 2007.
Third question:
Short term borrowings are 160 (from the question)
Total borrowings are 160 + 100 (again from the question)
So the percentage is 160/260 = 62%You can calculate the interest on short term borrowings from note 1 of the question, and you can calculate interest on the long term borrowings from note 2 of the question!
Are you watching my free lectures on all of this? The lectures are a complete free course for Paper F9 and cover everything needed to pass the exam well.
I hope you are not studying simply by looking at past exam questions! To pass the exam you need to study properly by either watching my free lectures or using a Study Text from one of the ACCA approved publishers.
In addition you need to buy a Revision Kit from one of the ACCA approved publishers – they contain lots of exam standard questions (in the new exam format – it has changed) and practice is vital to passing the exam.You will not pass the exam if all you are doing is looked at past exams.
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