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Hello,
I am having difficulty with figuring out why WC is recovered in the final year in one case and is not in other.
For example, CJ Co (12/10) case suggests that WC should not be recovered, while BRT Co (6/11) suggests that it should not. How do I distinguish between them?
Could you please explain. Thank you!
In BRT, the working capital is recovered. This is the normal situation as explained in my free lectures.
In CJ it has not been recovered, but this is because the last paragraph of the question specifically states that the directors require the working capital recovery to be ignored (and the examiners answer to part (b) of the question states that the directors view is wrong).
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