Marginal Costing Decision Making "PR Support Limited" ACCN4 June 2017 Paper 2

[@aninjaowl]

did anyone understand the budgeted income statement question today. they gave revenue purchases and closing inventory but not sure if there was any adjustments to do for it.

[@maxscott5060]

Had to work out 11 months of the purchases and revenue I think cause it payed the following month which means the last month would be paying the next financial year

[@aqaaccountingteacher]

@Hysteric Kid The income statement in 14.1 was very straightforward. You had to include the full year's sales and purchases; the info about receivables and payables was so that you could calculate figures for the SoFP in 14.2. The only calculations you needed for the I/S were depreciation and loan interest. The SoFP was slightly trickier, particularly if you tried to work out the bank balance as you would need to take timing of all receipts and payments into account. I came up with a loss and an overdraft balance in excess of her limit. You also needed to split the loan between current and non-current liabilities. Overall not a bad question. I have certainly seen worse 🙃

[@aninjaowl]

@@aqaaccountingteacher There was also rent was £1300 a month so you just include £1300 x 12 into the accounts? or no... it also said 1 month was paid in arrears as well so not sure what you would do for that. im assuming that would be current liabilities but not sure

[@aqaaccountingteacher]

Yes, you include all 12 months in the income statement and put the one month arrears in current liabilities “other payables”

[@evanpenfold4462]

@@aqaaccountingteacher please tell me the overdraft was 7500, if it was i must've got it all right :)

[@isaachoggar4581]

Hopefully this come up on the paper today

[@aqaaccountingteacher]

Who knows! Apologies for it not appearing sooner. I had it set to unlisted somehow 😬

[@munaafkhan6127]

Thank you for all your help 😎❤️

[@aqaaccountingteacher]

You're very welcome 🙂

[@munaafkhan6127]

@@aqaaccountingteacher I did my paper 2 it was better than paper 1

[@maxscott5060]

For the break even Analysis graph, I mixed up the fixed costs with the variable costs how many marks will I lose?

[@aqaaccountingteacher]

Not too many. It was only a section a question wasn’t it, not one of the big money questions?

[@maxscott5060]

@@aqaaccountingteacher it was a 10 marker. U had to work out the break even point and then had to work out the margin of safety and then another thing I can’t remember what it was. But I mixed them up which means I got the other two wrong as well just hoping I get OF marks

[@maxscott5060]

But it was a section A yes

[@aqaaccountingteacher]

Yes, you’ll get marks for your workings / method.

[@biljeetsingh4471]

@@maxscott5060 was the breakeven 2500 units?

[@ratul4164]

Hi miss, I had a question about todays exam. For the investment appraisal question was I expected to add the depreciation to each years cash flows?

[@harryhvh2291]

I don't think you were but on some of the investment appraisal questions ive seen they have added it back, never really understood why sometimes they do and sometimes they dont.

[@aqaaccountingteacher]

I haven’t seen the paper so can’t comment on this specific question yet. If you’re trying to find the cash inflows from profit after depreciation, you need to add depreciation back to the profit because it’s a non-cash expense. If you’re trying to find cash outflows from an expenses figure that includes depreciation you would deduct the depreciation. Hope that helps? I’ll try and clarify tomorrow morning when I’ve got a copy of the paper.

[@harryhvh2291]

@@aqaaccountingteacher I thought you ignored depreciation all together? On the question it gave you the units sold, selling price/unit and variable cost/unit and the fixed costs excluding depreciation it said. It had a residual value of 15000 and it had a purchase cost of 30,000 and installation cost of 2000. I left out depreciation all together? Also would you include the installation costs in your year 0 NCF for the net present value? thanks:)

[@aninjaowl]

@@harryhvh2291 did you add residual value at the end of the year to the cash inflow

[@harryhvh2291]

@@aninjaowl Yes on the year 4 cashflow before you multiplied it by the discount factor

[@ayazbhol]

gl everyone

[@zubairali5517]

You too mate

[@Ray-sb8qi]

how was it

[@biljeetsingh4471]

@@Ray-sb8qi honestly not too bad paper 2 is defo better then paper 1 felt much easier

[@minegame50]

I visited your youtube channel. Your video content is good but Your are not getting video views and subscribers because your video is not properly on page seo

[@isa.a55]

Did anyone get the NPV question on paper 2

[@bobdude-yi4fm]

kind of

[@biljeetsingh4471]

Was it like 5400 something

[@isa.a55]

Yeah

[@biljeetsingh4471]

@@isa.a55 is that what you got yeah? Bc I got something like that

[@biljeetsingh4471]

@@isa.a55 and a payback of 3 years 197 days?

[@evanpenfold4462]

for the payback did anyone get 3 years and 5 months ??

[@biljeetsingh4471]

I got 3 years 6 months

[@biljeetsingh4471]

But it’s in days I got 3 years 197 days

[@evanpenfold4462]

I got 4.3 or something like that and rounded it up to 5

[@biljeetsingh4471]

@@evanpenfold4462 did the question ask for years and months bc I done years and days got 3 year 197 days

[@evanpenfold4462]

@@biljeetsingh4471 just asked for payback didn’t specify I’m pretty sure

[@Itachitheuchihaslayer]

thanks

[@aqaaccountingteacher]

You’re welcome 🙂