Cash flow calculation

Hi

Unfortunately, there is no hard and fast rule. You use what you can and whatever there is available in order to arrive at any missing figure. Sometimes the only information is nbv based, sometimes you are given "full" information of cost / valuation, accumulated depreciation and net book value. Even the course notes ( I seem to remember it's the first example in the cash flow chapter ) gives an example which can only be solved one way even though it appears from first reading that you have enough information to tackle it from either way.

I'm afraid it comes down to this - the figures in exam questions ( as in real life ) tell a story, and it's up to you to be able to read the figures and draw out the information which they hold. In simple words, it's practice, practice and then ...... more practice.

get yourself into a position where you are "comfortable" with the figures. You'll know when you've reached that point. Lights will not start flashing and musicians will not start to play. But, you'll know. It's at that moment that you feel an inner peace, an appreciation, an understanding.

And from that point on, the figures talk to you and you can hear what they say!

Lol. Thanks Mr Mike

you're welcome