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The following question relates to Toobasco ( Sep 2018)
https://www.acowtancy.com/exams/acca-sbr/paper-question/sep-2018-genuine-q4b#title
I want to ask why the model answer states that:”The pension deficit payments they are excluded when calculating free cash flow.”?. Does this due to the fact that pension deficit payments is considered to be non-recurring expense ( exceptional item) or there is other reasons?For Free Cash Flow you follow the formula in the question – there is no agreed formula.
So the answer is following the formula in the question.
I wonder why 27 is added to arrive at 298 ( free cash flow)? It is contradictory with the information given in the scenario
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