PEV december 05 2.2b

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joerd84
joerd84 Registered Posts: 56 Regular contributor ⭐
Hi,

Can anyone help me please, when recaluculating the ROCE in this question the net assets fugure has gone down from £3800 to £3542. I understand that Debtor would be reduced to £850, which would make the net assets £3600, can anyone explain the extra £58?

Thanks

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  • wolfe
    wolfe Registered Posts: 121 Dedicated contributor 🦉
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    hi
    fixed assets (£3,265 -£500) £2,765
    debtors £850
    cash (£85 +£200) £285
    creditors -£600
    net profit (£452-£210) £242
    revised net assets £3,542
  • Khurram Taj
    Khurram Taj Registered Posts: 29 Regular contributor ⭐
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    Hi wolfi
    Could you explain to me where did you get the figure £200 to add in Cash and why did you take off £210 from net profit?

    Best regards

    Khurram Taj
  • wolfe
    wolfe Registered Posts: 121 Dedicated contributor 🦉
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    khurram
    well if debtors are reducing by £200 , what will increase?? think.cash will increase obviously.
    and 210 is the original net profit while 452 is the restated . as the question asks for a revised profit and loss account for year ended 30 nov 2005 itself 210 will be deducted .
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