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Does “profit on disposal on NCA”impact current assets?why 2000 has no included in the figure of 63682 of current assets for proposal 3?
The profit on disposal would never impact current assets – you should remember from your financial accounts exams that the profit goes to retained earnings.
The cash received (of $27M) would usually increase current assets, but the question specifically says that the cash from the sale is used to reduce the company’s debt, and therefore it reduces the non-current liabilities.
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