March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Polit paper Dec 2006 Q1 FCFE

This topic has 1 reply, 2 voices, and was last updated 15 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 30, 2010 at 9:42 am #44268
danielng2008
Member
- Topics: 2
- Replies: 1
I wonder why the FCFE in 2005 is $87.2M which is just deducted the capital expenditure. Per the Kaplan text (P174), it should also be deducted the repayment of loan ($31M) and added the disposal of the JV($10M). Also further how about the deposit of $35.5M? Could you help me to clear this problem?
May 30, 2010 at 3:07 pm #61663
John Moffat
Keymaster
- Topics: 57
- Replies: 54832
The reason is that they are trying to forecast the FCFE for 2006 onwards.
Although they did repay a loan in 2005 and also dispose of the JV, these are not things that will be repeated in the future. (Similarly the change in short-term deposits)
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.