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Blipton 12/08. q no 75 of bpp kit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Blipton 12/08. q no 75 of bpp kit

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • January 25, 2018 at 1:20 pm #432935
    Avatarnikaido
    Member
    • Topics: 41
    • Replies: 89
    • ☆☆

    Dear Mr Moffat.. Good day to you , hope you are doing great.

    Taking year 1 and 2 as an example . Operating cash flow in real terms for year 1 and 2 are 52 and 490 respectively, converted into 54.63 and 527.68 in money terms respectively .

    Now i dont know what method was used to simply get to money terms without any workings shown , however i inflated with 4.8 % inflation both the contribution and fixed cost with respective inflation rate that is getting me just shy of the answer .

    for year 1 i am getting 54.4
    for year 2 i am getting 537.6 instead of 527.68.

    is there a quick way of getting from real to money terms by simply doing something with real operating cash flows instead of inflating both contribution and fixed cost ?

    Lastly plz is there any relevance to the statement that hotel prices are rising by 8 % percent in UK although the country inflation rate is 4.8 or is it just there to confuse .

    Thank you !

    January 25, 2018 at 1:39 pm #432949
    Avatarnikaido
    Member
    • Topics: 41
    • Replies: 89
    • ☆☆

    its ok.. thanks to the quick search somebody else asked this question before . i was just reading the question wrong . the inflation is 2.5 instead of 4.8., i wonder mistake like these can cost me an exam attempt . i better be careful

    January 25, 2018 at 5:14 pm #432983
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    Provided that you are showing your workings in a way that the marker can follow, you would not lose too many marks for making one mistake.

    That is why it is so important to make sure that your workings are easy to understand for the marker 🙂

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