Your videos have helped me so much... Earlier I used to to WACC questions on word format and just the practical part used to take up 25 mins easily. After watching your video.. Now I can do that in hardly 15 mins. Thank you so much
I have the same question typed above. The question says "Oscar Co would be required to accept an advance of 80% of credit sales when invoices are raised at an interest rate of 9% per year."
Thanks a lot Steve, your excel sheets have helped me a lot, also i wanted to know while solving mcq will we be provided with blank sheet to carry out our working in cbe exams?
Hi Mr. Steve! Why are you applying interest saving benefit to both options? Yes, on 1st option it says that the recev days will be reduced up to 30 days, but in second option it doesn't say that? Than you!
Hi Steve. Just to clarify, if it is with recourse factoring then we would have to pay it right, therefore do we put it in as a cost? Thanks in advance.
Hi there--it's still receivables, there is just no risk of bad debts anymore. The 80% is a cash advance that is part of the deal--this is at a higher interest rate than their current overdraft.
@@SteveWillisACCA Sir I think you misunderstood question.I mean in spreadsheet at side or down(solving question above)? Thank you so much for guiding us.
Regarding the increase in interest, why do you deduct 7% from 9%? I've seen in some questions they use the interest rate for the advance provided, and no deduction. Thank you.
Hello Steve, thanks for your videos. Could you please explain some technical skills (boost typing) during to prepare CBE Audit and Assurance exam (AA). Thank you in advance 🙏
Hi there, I don't teach AA, but you can improve your typing in English for any paper at typing.com Also, you won't lose marks for spelling or grammar errors, so don't stress to much about it. Do your best to communicate in a direct simple manner.
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Got that crisp and clear, thanks a lot for the support Steve !!
Glad it helped :)
Your videos have helped me so much... Earlier I used to to WACC questions on word format and just the practical part used to take up 25 mins easily. After watching your video.. Now I can do that in hardly 15 mins. Thank you so much
Excellent! Try to get it down to 10 minutes :)
You are a saviour really.... Hope this FM goes well...
That's kind of you good luck!
And why you are taking 80% of New Receivables? Not 28mln, because question says that 80% of credit sales?
I think it says "The factor will give a cash advance of 80 of the receivables"
I have the same question typed above. The question says "Oscar Co would be required to accept an advance of 80% of credit sales when invoices are raised at an interest rate of 9% per year."
@@SteveWillisACCA they shouldve said that!
And also why did you take only 2% bcs he will pay 9% int for 75 days and not for the whole year!
thanks again Steve , Very clear !!
Very welcome
Really your videos save a lot of time for me. Kindly can you also add ENPV questions in FM some of are challenging questions.
Yes, sure
sir your videos are very helpful.
kindly make a video on audit and assurance paper.
its exam techniques or anything more important.
Support your comment, also preparing for this exam
Thanks a lot Steve, your excel sheets have helped me a lot, also i wanted to know while solving mcq will we be provided with blank sheet to carry out our working in cbe exams?
Hi there, glad they are helpful. Yes, in the exam centers they give you scratch paper. At home, you'll have to use the built in digital scratch pad.
@@SteveWillisACCA thanks 👍🏻, dought cleared
Hi Mr. Steve! Why are you applying interest saving benefit to both options? Yes, on 1st option it says that the recev days will be reduced up to 30 days, but in second option it doesn't say that?
Than you!
It says in the question (I think) "the reduction in days will be the same in both options"
Many thanks Steve Willis
You are welcome :)
Learnings
Use rows and write common things for both option.
Option 1 and Option 2 should be side by side.
If more than 1 steps use workings.
good take-aways from the video!
u are a legend ,thank you so much ❤❤
Glad the video helped--good luck 🤞
Hi Steve. Just to clarify, if it is with recourse factoring then we would have to pay it right, therefore do we put it in as a cost? Thanks in advance.
In recourse factoring the factoring company helps us with collections but we keep the risk of the bad debts, plus the bad debts written off expense
On the non-recourse (Option 2), factor wants us to take 80% of Cr.Sales as per the question? Then why do we calculate 80% on revised receivables?
Hi there--it's still receivables, there is just no risk of bad debts anymore. The 80% is a cash advance that is part of the deal--this is at a higher interest rate than their current overdraft.
Sir workings should be done on side or down? Our tutor told us to do workings down?
In the spreadsheet, the markers will see your workings in the cell. You don't need to reproduce them.
@@SteveWillisACCA Sir I think you misunderstood question.I mean in spreadsheet at side or down(solving question above)? Thank you so much for guiding us.
There is no rule. Some people copy the way they see it in the textbook, but I think it fits better the way I showed in the video.
Regarding the increase in interest, why do you deduct 7% from 9%? I've seen in some questions they use the interest rate for the advance provided, and no deduction. Thank you.
It's the incremental interest above what the bank charges. Bank charges 7%, factor will charge 9%.
@SteveWillisACCA thanks so much
you are welcome :)
Sir, can we type shortforms as shown in the video such as TR, OD and so on...?
Absolutely. If the marker understands what you mean, and they will, you'll get the mark.
Hello Steve, thanks for your videos. Could you please explain some technical skills (boost typing) during to prepare CBE Audit and Assurance exam (AA). Thank you in advance 🙏
Hi there, I don't teach AA, but you can improve your typing in English for any paper at typing.com
Also, you won't lose marks for spelling or grammar errors, so don't stress to much about it. Do your best to communicate in a direct simple manner.
@@SteveWillisACCA Thanks 🙏