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Ennea (6/12)

Vvinty8y ago
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?
John MoffatJohn MoffatTutor8y ago#1
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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