PEV december 05 2.2b

joerd84

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

wolfe

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

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

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 .