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Rainer Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Rainer Co

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarJohn Moffat.
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  • August 30, 2019 at 8:45 pm #543893
    Avatarkennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    Year——————1———–2————-3————-4
    Sales volume-10000——12500—-12500——-7500

    sales price unit 30$ per unit
    inflation rate for sales price is 3%
    The new product will require an immediate investment in WC of 45000$ which will change in line with sales revenue.

    How I calculate WC in this scenario?

    August 31, 2019 at 8:56 am #543940
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    I explain how to deal with changing working capital in my lectures on chapter 8 of our free lecture notes, working through example 3

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