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december of 2013 (past year paper)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › december of 2013 (past year paper)

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • April 30, 2018 at 3:53 pm #449483
    wingyee
    Member
    • Topics: 39
    • Replies: 9
    • ☆

    The question 4(a)?what is the difference between the sale of supermarket as going concern and sell the market seperately?
    And wjy the extra cash generated from the sale is $99m,rather than using the balance of the sale of supermarket after repaid the debt,which is $29.07m(511.07-482)?

    April 30, 2018 at 5:32 pm #449500
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54656
    • ☆☆☆☆☆

    If it is sold as a going-concern then the customers already exist and the purchaser will immediately have sales.
    If the assets are sold separately, then the purchasers will then have to build up customers before they start making profits.

    The balance after repayment of debt is 581 – 482 = 99M

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