Hi Dear Tutor, i
revised overdraft=net current assets at the end of March 2014+trade receivable at the end of March 2015+inventory at the end of March 2015-Trade payable at the end of March 2015
revised overdraft=5456000+3945205+8219178-3616438=14003945
Using current ratio to find current liabilities and then deduct trade payable at the end of March 2015=overdraft
current ratio=1.4
current liabilities=3945205+8219178/1.4=8688845
overdraft=8688845-3616438 (trade payable march 2015)=5072407
what are differences between there overdraft figures
Ask the Tutor ACCA FM
June 2014 q 2
5y ago#1I don't understand why you are writing that the revised overdraft is as you have in your first sentence.
The overdraft at the end of March 2015 will be the overdraft at the end of March 2014 less any cash received during the year and plus any cash payments during the year.
Yes yes I understood now, we find revised overdraft plus payments or any cash outflows less cash received.
Thank you very much
5y ago#3You are welcome :-)
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