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February 9, 2019 at 2:07 pm
Hello, Could you please explain me how total revenue is calculated on questions 5, 6 and 7? Many thanks in advance.
February 9, 2019 at 7:46 pm
If we have 3 months pre-acquisition and 9 months post-acquisition and post-acquisition monthly revenue is on average twice the pre-acquisition monthly revenue, then revenue for each of the 3 months pre-acquisition is, say, $1,000 and revenue for each of the 9 months post-acquisition is therefore $2,000
So total revenue for the year is $3,000 + $18,000 = $21,000 of which $18,000 (or 18/21) relates to the post-acquisiiton period
Now eliminate any intra-group revenue and there’s your answer
Is that better?
February 10, 2019 at 1:26 pm
That’s been cleared up now. Thank you for your prompt reply.
May 19, 2020 at 8:17 pm
Hello, could you please explain me: in question 5 « Whey had managed to sell only 1/5 from 25000 purchased ». Doesn’t it mean that we need to do adjustment only for 20000 left in the group? Thank you
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