[Daisy]

Thank you for your reply. I just have 1 more confusion. So what happen if there is a 3-month acquisition only? The time apportion the year’s profit is less than dividend paid. So the parent company wont have any shares in the associate’s post-acquisition retained?

Besides, I see in the Mock exam 1 of BPP, section B question 3 (page 224 for question and 236 for answer), they time apportion the dividends as well.

I am really confused.

Thank you so much for your time!

[Daisy]

I think that too. But in MCQ 13, mock exam 3 Bpp for exam up to June 2015(page 272 for question and 283 for answer), the answer is 400*6/12 – 150 .
That’s why I was confused.
Thanks for your anwer

[Daisy]

Thank you so much for your answer. They are very clear and helpful.

I have 1 more questio. regarding to EOQ:

Demand for 1 month is 7500, cost $100/ order, purchase price is $5, holding cost is 10% purchase price per unit.

Lead time of 30 days/

If they order EOQ each time, at what level of inventory should a new order be placed? and how frequently they will place an order?

Thanks and all the best !

[Author]

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