Stanzial co (adapted kaplan kit q6)

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September 5, 2023 at 5:16 am #691373
lavir
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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
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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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