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Working Capital in Qu 1 F9

Forums › ACCA Forums › ACCA FM Financial Management Forums › Working Capital in Qu 1 F9

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by AvatarAvish.
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  • November 28, 2013 at 12:19 pm #148271
    Avatarciarafrancie
    Member
    • Topics: 4
    • Replies: 3
    • ☆

    When working capital is used in Qu 1 it usually is recovered in full in the last year unless the qu specifically states to ‘ignore working capital recovery’.
    Dec 10 – Specifically states to ignore working capital recovery
    Jun 11 & Dec 11 – Have working capital in the qu and it doesnt say to do anything with the working capital therefore it is automatically recovered in the final year
    Jun 13 – Is the exact same as Jun 11 & Dec 11 but yet the examiner does not add back the working capital whereas if you were basing it on Jun & Dec 11 it should have been added back.

    Can someone please help me as the difference in adding this back or not is the difference in whether it is a poisitive NPV or not.

    Thanks
    Ciara

    November 28, 2013 at 1:38 pm #148287
    AvatarAvish
    Member
    • Topics: 7
    • Replies: 6
    • ☆

    Ya..I agree.
    I was working J13 and went through the solution and noticed that there is no w.c recovery in the examiners answer.
    My answer defer from those provided in the M.s specially because of that w.c recovery.
    Awaiting for John response to clear the issue.
    Thank you.

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