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June 3, 2020 at 4:10 pm
Could you please tell me why we use the number of cost of sales as purchase instead of subtracting the sum of last year’s ending inventory and cost of sales by this year’s ending inventory?
May 9, 2020 at 4:37 pm
i meant in the exams are given the formulaes
John Moffat says
May 9, 2020 at 4:57 pm
No – you have to learn them. The formula sheet that you are given in the exam is printed at the beginning of our free lecture notes.
January 20, 2020 at 5:24 am
sir, why is that you’re calculating net profit margin with PBIT instead of using net profit
January 20, 2020 at 6:01 am
Also in ROCE why we can’t use net profit instead of PBIT.
In receivables days and payables days why we’re not taking avg trade receivables and avg trade payables ?
January 20, 2020 at 7:59 am
As I explain in the lecture, it would be better to use average payables and receivables. However the problem is that we then need both the opening and closing balances. We may have both for one year but if we are comparing this year and last year then we need both balances for both years otherwise it is not a fair comparison.
January 20, 2020 at 12:56 pm
January 20, 2020 at 3:39 pm
You are welcome 🙂
January 20, 2020 at 7:57 am
Because we are measuring how well the business is performing. Tax and interest are not under the control of the managers running the business.
Tai Wo says
May 13, 2019 at 4:05 am
In some of the syllabus, they say we should use average receivables as against receivable
May 13, 2019 at 5:11 am
Opening receivable for 2007 will be ending of 2006
May 13, 2019 at 8:07 am
It depends on what information is given in the question as to whether to use average receivables or closing receivables (although if the information is available then average receivables is better).
And yes, opening receivables for 2007 will be the closing receivables for 2006.
April 21, 2019 at 12:07 am
Thank you so much sir for every lecture video..am so grateful.God bless you.
April 21, 2019 at 10:23 am
Thank you for your comment 🙂
October 6, 2018 at 9:01 am
Sir, In example 1, if reserves were given, we would have to take into consideration while calculating the total long term capital correct?
October 6, 2018 at 11:47 am
August 29, 2018 at 9:07 pm
August 30, 2018 at 10:20 am
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