[danaradoi1986]

Do you remember the mark allocation?

[danaradoi1986]

I also got negative cash flows even after adding the Financing Effects

[danaradoi1986]

I don’t think that they doubled collection of days. It was saying every X number of days , which would mean every 14 days the collections took place? Which is in line with the benchmark against org A , as A had collection every 7 days their staff cost was higher compared to WMS..or this is what I think.

[danaradoi1986]

I think I got 22 but for the second I think I got more ? Can’t remember exactly how much..for the second subsidiary I used the FV of the shares(not the carrying value) , I think it was 700 ×40%×1.6$= 448…which also meant a gains should be recorded for the difference between the FV and CV for the 40% interest?

[danaradoi1986]

Hi everyone,

This is how I calculated the Disposal of associate. Might be wrong ..please let me know how you did it?

Sales proceeds 42

Carrying value at disposal date:
Profit for 6 mths
(20mil x 6/12 x 25%) 2.5
Investment value at date of disposal 110
CV at disposal = 112.5
Value sold (112.5 ×10/25) 45

Loss on sale of associate (42-45) 3

Thanks !!

[danaradoi1986]

I came up with Option X as being the better choice of Investment as it gave a better return ..

1. first decision tree branch was -> 3 years – 0.2 probability of doing well – then the next 3 – high return only for both X and Y

(Option X would have been calculated as 0.2× 1x 6 years X 2 mil) ;

2. Second decision tree branch -> first 3 years – 0.8 chance of a low return which then further breaks down into 0.5 chances of high return or 0.5 chances of low return
(Option X would have been calculated as
0.8 X 0.5x 6 years x 2mil and also adding 0.8× 0.5× 6 years x 0.5 mil)

By adding all this calculations and deducting the 6 mil cost of the investment I got 2.4 mil return. Not sure if it’s correct? What do u guys think?
Thank you

[danaradoi1986]

I did the same for the NRB on Q5

[danaradoi1986]

Thank you very much!! I feel better and more reassured 🙂

I also managed to work out on Q2 the Short Life asset opening Balance for Mar 2013.. Around £1,845 (as without the WDA 18%) it was giving me the balance they disposed of in December 2013.. Don’t know if that is right.. Also too many cars that were acquired that year..

[danaradoi1986]

In question 4 I have done the same, splitting the limits initially and then treating it as 1 company without splitting the limits, which gave me a tax saving of about 4k by using the second method.. How did you approach the 1st question with the partnership? Where one of the partners left half way through the year? Did you apportioned the profit and split it into 3, and then in 2 for the remaining months?
Thank you

[danaradoi1986]

Failed with 44% but I didn’t study much

[danaradoi1986]

Passed with 55%!!!!

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