Pev Dec 05
sair_19
Registered Posts: 7 New contributor 🐸
Hi,
Does anyone know how the revised net assets for the capital employed is calculated for task 2.2? I have spent hours trying to work it out to what the examiners answer is and have had no luck!! Please help :001_smile:
Thanks
Sarah
Does anyone know how the revised net assets for the capital employed is calculated for task 2.2? I have spent hours trying to work it out to what the examiners answer is and have had no luck!! Please help :001_smile:
Thanks
Sarah
0
Comments
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We did this in class on Thursday.
Revised Balance Sheet (£000's)
Fixed Assets £2765
Debtors £850
Cash £527
Creditors £600
===========
Net Assets £3542
Fixed Assets went down by £500,000 due to sale of surplus land and distribution of proceeds.
Debtors went down to £850,000 as given in the question.
I think the tricky bit was the Cash where you add £242,000 extra profit and £200,000 extra collected from the debtors.
Then ROCE = 100% x £452,000 / £3,542,000 = 12.8 %
(original ROCE was 100% x £210,000 / £3,800,000 = 5.5 %)0 -
Glad this has come up - I had the same problem and coudln't get back to their answer of £3,542.
I made net assets £3,100. Anyone else make it that?0 -
Looks like you forgot to adjust the cash Dee26Bee.0
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Dec 05
Thank you for your help! I think i was trying to redude debtors by 850 rather than down to 850!:001_smile:0 -
Yes! So fundamental hey! How stupid can you get!!0
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