20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Yilandwe (6/15)

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
October 17, 2018 at 3:22 am #478853
sk300596
Member
- Topics: 1
- Replies: 1
The question says working capital will need to be increased annually , but in the solution it’s decreasing. (9600 is year 0, 2112 in year 1, 722 in year 2 and 1316 in year 3).
October 17, 2018 at 6:59 am #478871
John Moffat
Keymaster
- Topics: 57
- Replies: 54659
It is not decreasing. The 2,112 in year 1 is the extra working capital needed (and brings the total up to 9,600 + 2,112). The same applies in the later years.
I do explain this point in my free lectures.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.