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Thanks that helped!see the image below, now it will be clear to you.
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Thanks that helped!see the image below, now it will be clear to you.
But they have also taken operating profit into accountwere you talking about 41 or 43? & yeah I think you are referring to the calculation of Trade & Other Payables. I cant say if marking scheme is wrong, but this type of question came for the first time(at least among ones I have seen) where only 1 year's balance sheet is given (& working capital is given as one figure). Anyways you calculate the Cash balance from the given balance using the same logic used in Cashflow statements(Profit+Depreciation-Redemption-Dividend). It'll be 82k, add it to original working capital 983k & subtract the Assets amount given 1610k to get the liabilities (besides loan stock)
Lower of cost or Net Realisable value(Price expected to be received from sale - cost of putting them into saleable condition). But I think there maybe a fault in the values you have given. I am assuming repair cost is $500 & not $5000. Then it'll be done like this: Cost=$10000 & NRV=$4000-$500=$3500. Therefore we'll take the value as $3500 in the balance sheet.how do we make adjustments for faulty stock
for exp.
100 A/C's got destroyed during renovation
their cost was 100$
but can only be sold for $40 with a repair of $ 5000
so how what should be the value of stock in the balance sheet
i don't get it? usually dep on disposal is debited to dep A/C so this reduces the value shown in P&L right?Depreciation on Disposal decreases the Accumulated Depreciation, Depreciation for the year figure shown in P&L a/c will not be affected by reduction of Accumulated depreciation.
ohhhh ok in the same paper Q2, in "a" they asked for an income statement and the appropriation A/c, but in the mark scheme they've made the income statement and the statement of changes in equity? why?No it reduces the carried down value of Accumulated Depreciation, so it affects the Accumulated Depreciation shown in the Balance Sheet. The Depreciation for the year shown in P&L a/c is calculated by using the formulae (revaluation/straight line), its not a balancing figure...
Just calculate profit or loss for 5000 chairs thats all
How did you get 142 days for 2010? I got the correct answer ,i.e 204.6 days by dividing trade payables by cost of sales. This works only for 2010 not 2011 and I'm not sure if this is a correct method. Also how did you find the income gearing , in the mark scheme they've found the interest cover instead.yeah I am confused too I am getting 142 days for 2010 & 106 days for 2011
I would've answered you bro, but you said "If you're reading this, then you're probably wasting your time. I mean c'mon you have better things to do. Now stop reading this. Stop already! =/". So....
I would've answered you bro, but you said "If you're reading this, then you're probably wasting your time. I mean c'mon you have better things to do. Now stop reading this. Stop already! =/". So....
lol jk...
you gotta calculate it by the formula (Goodwill=Purchase Consideration-Fair Values of Net Assets taken). for P.C., it says 3 times the average profits of last 5 years, so it'll be 3/5 x (29+25+17+13+11+55+49+42+25+19) = $171000.
Fair Value of Assets taken will be 50+5+80+20+14.5 = $169500.
Therefore the Goodwill = $171000-$169500 = $1500
because now redeemable preference dividend also comes under finance cost.If finance cost and interest are the same why is it that in this format finance cost has been added and then interest paid subtracted?
http://www.docstoc.com/docs/8243537/FORMAT-FOR-CASH-FLOW-STATEMENT
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