Dear John,
I can not understand why they subtract depreciation of 0.2m from profit? As I understand depreciation should reduce capital employed (less current asset value), but not profit?
Sorry, got it! Yes, depreciation is decreasing profit, selling the asset - capital.
Thanks anyway.
V.
Ask the Tutor ACCA PM
problem 259 solution in BPP kit
No problem :-)
This topic is locked — no new replies.
