PEV DEC 05

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anyone help me understand where they get the revised net assets of 3542 for question 2.2b. Bearing in mind all of the improvements????

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV DEC 05

    i cant see it either surely it would be 3042 as land for 500 is sold? maybe it an error theyve made?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV DEC 05

    This was answered previously on here - I have to say it stumped me too.

    The revised figure for capital employed includes the increase in profit so the calculation is

    3,800(old NA figure) - 500 (FAs sold) + 242(increase in profit) = 3542

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV DEC 05

    Why do you not reduce the debtors by 200?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV DEC 05

    You've received £200 from your debtors so you've £200 more cash. You've just moved assets from debtors to cash, it doesn't affect the net assets figure.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV DEC 05

    Thanks CJC I can see that now. I think I'm getting too tired from revision!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV DEC 05

    I know the feeling.

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