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Fernhurst Co Sep/Dec16 Q 2b

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Fernhurst Co Sep/Dec16 Q 2b

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 9, 2020 at 4:16 am #561123
    sudiptosen
    Participant
    • Topics: 5
    • Replies: 110
    • ☆☆

    Good Morning Sir,
    Request if you could kindly explain how to reduce the selling price.

    In the answer, as provided in the Exam kit, have noted that Selling Price got reduced by 25% and then discounted

    How to arrive to 75%

    Thank you

    February 9, 2020 at 10:00 am #561145
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    For every $1 change in the selling price, there will be a $1 change in the operating cash flow. Tax is 25% and therefore the final effect on the cash flow is 75% of $1.

    February 9, 2020 at 2:33 pm #561178
    sudiptosen
    Participant
    • Topics: 5
    • Replies: 110
    • ☆☆

    Thank you so much Mr Moffat

    Regards,

    February 9, 2020 at 4:19 pm #561189
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Fernhurst Co Sep/Dec16 Q 2b’ is closed to new replies.

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