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@jimbob1212 said:
do ACCA upscale marks if the overall grades are low?No!
and what about 20th question ?
shares + reserves – current liabilities / number of shares .
2.1 or 2.5 I can’t remember- Topics: 0
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Hi Guys,
Q3 i calculated cost of finance:
Current was 445800×5% = 222900
Proposed:
26750000 x 35/360 = 2600994
2600994 x 80% x 7% = 145639
2600994 x 20% x 5% = 26009
Total 145639 + 26009 = 171648
Difference 222900 – 171648 = 51252 benefit
Someone did the same way?Well, now that the exam is up, I redid the question (sad, aren’t I) and I came up with the same as I had in the exam – not that that makes it right mind!
Wanted really to double check the wording and I still stick with my original feeling since the question did indeed say ‘80% of the value of invoices raised’, not of the new receivables balance. We’ll have to see what John makes of it.
Bit of a relief to see Q2 did ask for company value, not share value so my total value was the right path. No idea whether my actual answers were right as I can’t for the life of me remember what I put. Just recalculated again to compare with John and hoping that what I did now is what I did in the exam.
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I had total benefit of 80623 for factor in Q3. anybody the same?
@ Jenny This is really confusing ” 80% of the value of invoices raised”. Lets see 🙂Yes the wording in Q3 made no sense at all. It did say 80% OF THE VALUE OF INVOICES RAISED, which makes it a ridiculous figure
Guys, guys, question 3 was taken from bpp book..find it out. There is no problem in the wording. There is just one correct solution to this type of questions
Bpp gives the same example, with the same wording, of invoiced debt…just calculate question 3 using bpp method, you will get benefit of 87000
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@ Gvtft I agree with you on 80% of new Receivable (0.8*26750000*35/360) and mutiplied by difference betwee 7-5 but that about remaining 20%?
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I disagree here
Besides 5% is applicable to old Receivable (4458000)Proposed is based on new ( 26750000*35/360) Receivable where 80% is finance at 7% and the rest on 5%. I think….
Gosiap, thats the point, you have to find the increase in financing cost between old and new receivables policy
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Lets see soon.. when do you think guys we can get the suggested answers?
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I dont have it with me. whats the question/comapy name?
It was the receivables management chapter, section where they described factoring. You think right, but you mixed two methods
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