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- This topic has 3 replies, 2 voices, and was last updated 3 months ago by
Stephen Widberg.
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- May 22, 2024 at 10:40 am #705825
Dear Tutor:
would you please help me this question if you get time?
Consolidated Disposal Aquisition Cashflow
Decrease in Inventories 39.00 30.00 -16.00 53 ?
Increase in trade receivables -7.00 27.00 -21.00 -1 ?
Increase in trade payables 18.00 36.00 -23.00 31Cash flow for inventory (the question mark ) seems to be wrong! I copy its answer from acca website CBE qestion : Moyes Group.
I checked the text book (Karplan) it shows the same example.
I follow that example to deal with Moyes:Decrease in Inventories 39: Bal c/f 0; Bal b/f 39
Increase in trade receivables 7: Bal c/f 7; Bal b/f 0
Increase in trade payables 18: Bal c/f 18; Bal b/f 0
Inventories receivables payables
Bal c/f 0 7 18
Bal b/f (39) ( 0 ) ( 0 )
Net of Bal (39) 7 18Less: Sub acquired (16) (21) (23)
Add: Sub disposed 30 27 36Movement in the year (25) 13 31
Decrease Increase Increase
Impact on cash flow Inflow Outflow InflowSo, based on this textbook’s example, I calculate the different results.
Would you please help me which one is right? many thanks
May 25, 2024 at 11:58 am #706001I’m afraid that I cannot make any sense of these numbers. Perhaps the examples are slightly different (as the tuition providers sometimes update questions in different ways).
May 25, 2024 at 3:03 pm #706007Thanks, do you mean the acca website’s anwer is right?
May 27, 2024 at 4:47 pm #706136As stated earlier I cannot tell. but I suspect that the questions are very slightly different.
Sorry I can’t be of more help.
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