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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Fernhurst Co Sep/Dec16 Q 2b
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
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.
Thank you so much Mr Moffat
Regards,
You are welcome 🙂