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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2015 – Question 1
Hi John,
For question 1, June 2015, how do you calculate the remit table CF?
Kind Regards
Jaime’
You will have to be more specific as to which figures you are not clear about.
The Yilandwe Rand cash flows are converted to $’s at the relevant exchange rates and then the extra earnings in $’s (the contribution on the goods sold and the royalties) are added on.
How do I calculate the amount (479290) for the line titled ‘Remittable flows’ in year 0. Similarly, how do I calculate the amount (16370) in year 1.
The time 0 flow in YR is 48,600 million,
This is converted at the exchange rate of 101.4, and therefore the remittance in $’s is
48,600M / 101.4 = $479,290 thousand.
Similarly, 1966 million YR converted at an exchange rate of 120.1 gives 1966M / 120.1 = $16,370 thousand.
