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BBS Stores, June 2009, Q2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › BBS Stores, June 2009, Q2

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • September 18, 2015 at 11:43 pm #272418
    petrochina
    Member
    • Topics: 6
    • Replies: 79
    • ☆☆

    Hello,

    I can not figure out:

    1) How can I reliably undestand from the question scenario that the BBS Stores business consists of 2 businesess Property business and Retail business.

    2) I could not understand where the proportions of each business came from (in examener`s answer). I indicated them in the answer – see the link. https://gyazo.com/fc25e9201b194595d7c5d7c69cb9f42b

    Thank you in advance.

    September 19, 2015 at 7:53 am #272429
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    The company is called BBS Stores, and it says in the question that the company owns all its stores.

    So it must be selling things in its stores (the retail business), and the question says that it owns all its stores (which is the property business).

    The property is the land and buildings and the assets under construction, which is 2297 + 165 = 2462. The retail is the balance (to make it total 6800).
    If they sell half of the property then it becomes 2462 / 2 = 1231

    September 19, 2015 at 9:23 am #272467
    petrochina
    Member
    • Topics: 6
    • Replies: 79
    • ☆☆

    Thank You John, now it is clear

    September 19, 2015 at 1:34 pm #272485
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    You are welcome 🙂

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