[victory1971]

Thank you John 😀

[victory1971]

Actually, I have figured out the working capital calculations-exam revision stress is clouding my numerical judgement 🙁

[victory1971]

Also, while working out the working capital figures, I don’t understand how the model answer derives the value of 1,316(yr 3) and 14,750(yr4). Thank you.

[victory1971]

Thank you for the prompt response John 🙂 Also looking at the model answer, they have added back the capital allowance figures and loss carried fwd once the tax @40% has been calculated. I am confused as to why this is the case. Thanks.

[victory1971]

Hi John,
Another question on this topic. In part C when calculating the revised EPS, why are we adding the interest costs to the EBT? Also I thought the question was asking for the current EPS but the answer only shows the earnings calculations?

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