[xia]

thank you very much

[xia]

thank you, i got it.

[xia]

hi,sir
the following transactions relate to a’s electricity expense ledger account for the year ended 30 june 2009.
prepayment brought forward: $550
cash paid: $5400
accruals carried forward: $650
what amount should be charged to the statement of profit or loss in the year ended 30 june 2009 for electricity?
I think it should be 550+5400-650, but the answer is 550+650+5400, i dont understand why should add the accruals?

[xia]

Yes, got it, thank you very much!!

[xia]

oh..got it, thanks a lot!

[xia]

Thanks, i got it!

[xia]

okay,i got it! thank you very much!!

[xia]

Okay,i got it, thank you very much for you patience and great answer!!
And i have another question, please help me…
A two year project has the following annual cash flows:
Initial costs:$400000
12 months later:$300000
24 months later:$200000
The cost of capital is estimated at 15% per annum during the first year and 17% per annum during the second year, what is the net present value of the project?

[xia]

I still do not understand the solution for A…would you please explain more details for me?
i mean, why it is 56000 immediately?

[xia]

oh, i got it ,totally, thank you very much!

[xia]

Ok, i got it, thanks a lot!

[Author]

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