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Hi there,
This is a lease/buy question and I have just come to check my answers with regarding the buy section. They have added the tax onto the workings rather than subtract. Now I am not sure whether this is an error on their part or whether it is different in a lease/buy situation. In the question it states Company pays tax on profits at an annual rate of 30% and all tax liabilities are paid one year in arrears. Unless I am going mad, there must be an error in the answers? Thanks very much
they have added the tax back because the total figure was a negative, so effectively they are claiming tax back in that bit
if the total figures were profits then the tax would be negative. Tax is always opposite to profit/loss figure
hope that helps
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