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Dec 15 exam CIM

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Dec 15 exam CIM

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 5, 2017 at 10:40 am #375700
    Avatarsm8980
    Participant
    • Topics: 48
    • Replies: 38
    • ☆☆

    Hi,

    In the question it states how division f has a better cash balance than division n. But the figure for division f is 2480 compared to n’s 3260, please could you explain how this is better?

    Thank you

    March 5, 2017 at 5:53 pm #375749
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54837
    • ☆☆☆☆☆

    The 2480 and 3260 are not the cash balances. They are cash + inventory + receivables.
    So we don’t know how much of it is cash (and it is not relevant anyway).

    March 5, 2017 at 8:10 pm #375789
    Avatarsm8980
    Participant
    • Topics: 48
    • Replies: 38
    • ☆☆

    Could you explain what they mean then in this instance?

    Thank you

    March 6, 2017 at 6:37 am #375826
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54837
    • ☆☆☆☆☆

    The manager says that the cash balance is better and so presumably it is (he will know how much cash there is, but we don’t and so we can’t check).

    However the question does not require you to comment on the cash balance and it is irrelevant for the calculations required.

  • Author
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Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Dec 15 exam CIM’ is closed to new replies.

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