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Stanzial co (adapted kaplan kit q6)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Stanzial co (adapted kaplan kit q6)

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • September 5, 2023 at 5:16 am #691373
    lavir
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    hello john,

    can you please explain me how the working capital has been calculated as 172, i know it should be increased by 25% which gives the initial (x6) value to be 137.5. i could not find working capital expect in other information (iv).

    September 5, 2023 at 8:53 am #691388
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54762
    • ☆☆☆☆☆

    The 2006 working capital (in the question) is 686.

    In 2007 it needs to be increased by 25% and so the extra needed is 25% x 686 = 171.5 (which the examiner has rounded up to 172 in his answer).

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