Spread the word
If you have benefited from our materials, please spread the word so more students can benefit.
Donate
To help us keep materials up to do and add new content you can also donate
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Hello, Could you please explain me how total revenue is calculated on questions 5, 6 and 7? Many thanks in advance.
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?
That’s been cleared up now. Thank you for your prompt reply.
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