FM Chapter 6 Questions – Management of working capital (4) – Cash
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Please I I kindly get the solution of the question 2 ?
If you click on ‘review quiz’ after submitting your answers then the correct answer (and the workings) will appear.
hello Sir
is return point ( given on the formula sheet) the same as the upper limit ?
Sorry sir I figured there are different.
Yes they are different 🙂
I didn’t got answer of 1 question please tell how 4% came in boumol question
The net interest cost of holding cash is 5 – 1 = 4% (or 0.04)
why not 1% , please explain meaning of sentence(last line)
They lose interest of 5% on the investments sold and earn interest of 1% on deposits. So a net cost of 4%.
I’ve already passed 7 ACCA papers and I didn’t know about this resource before. It is perfect both for study and revision. Lectures are amazing. Thank you Sir for this opportunity!
Thank you for your comment 🙂
Got 100% thanks your valueable lecture video?
100%. Thanks sir john your lecture served us well
Thank you for your comment 🙂
100 % Result & thanks Sir john for the assistance 🙂 highly appriciated
Thank you for your comment 🙂
80percent
Great (although do make sure that you buy a Revision Kit from one of the ACCA approved publishers, because they are full of exam standard questions, and it is vital that you do practice lots of questions) 🙂
Thank you for these questions. They were very helpful
You are welcome 🙂
Hi John,
For question 2, I got the answer by;
Operating cycle= receivables + inventory – payables (50+60-45=65)
27 million x 665/360= 4,875,000
Is it ok to do this method?
Provided you get the correct answer, it doesn’t matter how you arrive at it. (For Sections A and B of the exam, nobody will look at your workings – only the answer is marked)
HI John,
Not sure which lectures covers the question 1.
Please advice.
Thanks
Jitin
Sorry I meant Question 2
The lectures on working capital management
Sir in the 2nd question we are not provided with the figure for credit purchases so how can we calculate average parables ?
Thank you
If you watch the free lecture, you will see that we have to make best use of the information available and assume the credit purchases to be the same as the cost of sales.
The lectures are a complete free course and cover everything needed to be able to pass the exam well.
Cheers
You too 🙂
Hi John,
Q4, why spread is not being divided 3. My answer is 100000+ 15,000/3= 105,000
The spread is the difference between the upper and lower limit. Why do you want to divide it by three? 🙂
I do suggest that you watch my free lectures on Miller Orr.
(Our lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well)
When you finish Quiz and press “Finish” it does not work. Need to reload the page………………(((
And what did you want ‘finish’ to do?
If you want to see the questions and answers again you press ‘review quiz’.
I don’t understand why it is causing you a problem!