[Alina]

Hello,

Trying to add to my monthly management accounts file a monthly statement of cash-flow. I struggle to extract the correct numbers from my TB. I am getting a difference on each month. Applying all this in real life is more complicated that I though. There are so many nominals and I am trying to guess what am I adding that I shouldn’t or what am I missing. HELP!
Stock is not the stock, I also have Stock in transit and Stock write offs( which is a nominal I am using on all stock taken/movements for the year and at the end of the year I will adjust the P&L with the balance as I have created a provision at the begin of the year, should I take this nominal into consideration or not? Debtors, I have the control a/c but I also have the provision created for the bad debts, would I take the movements of this nominal into consideration?

Thanks and apologies for the long post.

[Alina]

@france125 said:
Thank you for responding, I didn’t read the question well because of lack of time, I’m feeling disappointed about it. I hate these exams because to much pressure makes it difficult to even concentrate when there are so much information to search for. I am wondering will I still be awarded marks although the figures were not prorated?

I am 1000% sure you don’t pro rate from 100% to 80%, Chris one of the tutors was says in one of his lecture that you don’t do that, if you do that you may just go home as you will fail…so be confident about that…but if you are referring strictly at the pro rate fr midd year acquisition then is okay, we had to consolidate only the 9 months…
You get marks even if your numbers are wrong as far as I know, if your workings are fine…Best of Luck

[Alina]

@robertroddy said:
Try not to worry Alina – it sounds like you got most of it right. Use the learning for F7 tomorrow – it’s so easy to miss little details under pressure.

Thanks Robert 🙂

[Alina]

@mdafzal1999 said:
How did you get loss for hotel? did you multiply with 31 days of January, since data was given on per night basis.. I had got profit for both of them

I used the 31 days, but I am getting confused now as there were 31 days* 120 rooms/ $100 but the usual occupancy was 90% and from that January you had to reduce the price per room with 30%, even on this bases your occupancy was only 50% and I can’t remember is was another factor, but with all the costs adjustments I had a lost in both situation on the hotel…I can remember that if the hotel close the only cost that was zero was for the water… Probably I misread the all question…:(
Guys don’t mind me I realised only now that I probably missed to multiply by 31…I know I had it in my mind during the exam and probably was thinking that I did…

[Alina]

@khilen said:
I got this question to… I totally made it up – not sure what i did was correct.

What i did was for each (hotel and water park) i listed out the revenue less relevant costs to come to a total net figure???

Is this how it was supposed to be done?

Same here just listed the revenue and costs in different scenarios and analyse at the end…I hope they have mercy on us and give us some marks…:))

[Alina]

@robertroddy said:
Hi Alina – I had the same section C Qs. I Got really confused with water park/Hotel one so I’m sure i will have only picked up a few marks for method/the easier revenue/cost lines.

For transfer pricing I reached a different conclusion – that both managers would prefer to trade externally to benefit their divisions revenue but marginal cost for the company to produce mattresses was lower that the external purchase price so that both managers would benefit but the company was worse off ? Not sure if I misunderstood the scenario or not?

Robert, I think I had about 5 minutes of only thinking from where to start on the hotel question, is done anyway, hopefully we will get some marks. I stated to close the Hotel for the January and keep the water park open as the overall loss according to my calculations was the less than having them both closed or both open…

Q2 I think we have the similar answer as the profit was higher for the company if was to buy the mattress from the external supplier… this was my first attempt, tomorrow I’ll have a second try on F7….

[Alina]

I had no clue either that the questions will be different on section C and I was asking loads of questions one of the girls after the exam… and her answers were making no sense to me..hahaha…best of luck anyway…hoping for the 50 marks nothing more..

[Alina]

Who else got the question with the Hotel and Water Park? What conclusion did you arrived to? I closed the Hotel and kept the Water park open….
Second question on part C with Beds and Mattress, transfering price…buying from external supplier was improving company’s profits according to my results…
I think Section B was quite okay, but I did spend too much time…

[Alina]

Just passed today CBE with 85%, used only Open Tuition and 3 mock exams, delighted. 🙂

[Author]

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