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FM Chapter 6 Questions – Management of working capital (4) – Cash

 

33 Comments

  1. lee
    Please I I kindly get the solution of the question 2 ?
  2. John MoffatTutor
    If you click on 'review quiz' after submitting your answers then the correct answer (and the workings) will appear.
  3. tariro
    hello Sir
    is return point ( given on the formula sheet) the same as the upper limit ?
  4. tariro
    Sorry sir I figured there are different.
  5. John MoffatTutor
    Yes they are different :-)
  6. Frooti
    I didn't got answer of 1 question please tell how 4% came in boumol question
  7. John MoffatTutor
    The net interest cost of holding cash is 5 - 1 = 4% (or 0.04)
  8. Frooti
    why not 1% , please explain meaning of sentence(last line)
  9. John MoffatTutor
    They lose interest of 5% on the investments sold and earn interest of 1% on deposits. So a net cost of 4%.
  10. Yuliia
    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!
  11. John MoffatTutor
    Thank you for your comment :-)
  12. Anubhuti
    Got 100% thanks your valueable lecture video?
  13. John
    100%. Thanks sir john your lecture served us well
  14. John MoffatTutor
    Thank you for your comment :-)
  15. Breaker
    100 % Result & thanks Sir john for the assistance :) highly appriciated
  16. John MoffatTutor
    Thank you for your comment :-)
  17. SOLANKAR
    80percent
  18. John MoffatTutor
    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) :-)
  19. Asher
    Thank you for these questions. They were very helpful
  20. John MoffatTutor
    You are welcome :-)
  21. M.W
    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?
  22. John MoffatTutor
    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)
  23. Jitin
    HI John,

    Not sure which lectures covers the question 1.

    Please advice.

    Thanks

    Jitin
  24. Jitin
    Sorry I meant Question 2
  25. John MoffatTutor
    The lectures on working capital management
  26. Arunesh
    Sir in the 2nd question we are not provided with the figure for credit purchases so how can we calculate average parables ?
    Thank you
  27. John MoffatTutor
    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.
  28. Arunesh
    Cheers
  29. John MoffatTutor
    You too :-)
  30. vanny15
    Hi John,

    Q4, why spread is not being divided 3. My answer is 100000+ 15,000/3= 105,000
  31. John MoffatTutor
    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)
  32. Oxana
    When you finish Quiz and press "Finish" it does not work. Need to reload the page..................(((
  33. John MoffatTutor
    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!

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