[jackstyna]

I see.

Is there a difference between Finance cost and Interest? Or are they interchangeable?

I have 2 questions asking for Profit before Tax

One question, minuses the Interest to arrive at the PBT

The second adds back the Finance cost, to arrive at PBT

Again, thanks for your patience, John.

[jackstyna]

Just re watched your video lecture “Statements of cash flow part B” all is clear now, Thanks again.

[jackstyna]

Am i right in thinking we just CR with the Tax expense for the year, and then balance the account, with the plugin figure?

[jackstyna]

Thank you,

That is what I presumed, my mind can now rest.

[jackstyna]

Thanks for the reply,

The question is in a Kaplan MA2 exam Kit 2018, Page 75 in Cash Management.

Iv’e double checked everything and typed as exact from within the book,

The workings they show for the answer are as follows,

Cash Sales 10% of $40,000 4,000
Receivables
$36,000 x 40% x 96% in 1st month 13,824
x 50% in 2nd month 18,000

Total 35,824

Thanks again.

[Author]

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