bbs stores j 09

[mansoor]

good evening sir

part a: the loan is to be paid in 2 years. that made me think we have to calculate the sofp for x9 and x10…for which we needed the earnings … and this is where i looked at the answer!

my question: if the loan is to be paid in 2 years, why r we showing it paid in x8?

thanks

[John Moffat]

The second sentence of the question is writing about using the proceeds to reduce their borrowing.

That means repaying the borrowings now – not waiting 2 years.

In part (a) the borrowings they will be repaying now are the debt that would otherwise be repayable in 2 years time.

[mansoor]

i need to become Shakespeare to read p4 questions..:)

thankk u!!!!!!

[John Moffat]

You are welcome 🙂

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