Hi John,
For part b, in the examiner answer,
For the capital employed figures, the examiner has used (net assets-current liab) to compute.
As I know there are few way to calculate the capital employed and one of the other way is (equity+ LT liab).
If I had used the latter formula, a different figure will be derived. Will it be correct?
And I am unsure of which formula should I used if I faced the similar situation in exam? Could you please advise?
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AFM June 2013 - Hav Co
5y ago#1It does not result in a different figure.
In 2013 for example, the total assets less current liabilities are 882 + 210 - 209 = 883.
Alternatively, the equity plus non-current liabilities are 300 + 183 + 400 = 883.
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