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CIMA Exam CIMAPRO19-P02-1 Topic 7 Question 94 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 94
Topic #: 7
[All CIMAPRO19-P02-1 Questions]

The following forecast data relate to the first three years of a five year project.

The project will require an initial investment of $30,000 in non-current assets.

All revenue will be received in the year it is earned and all operating costs will be paid in the year they are incurred. Tax will be paid in the following year.

Tax depreciation will be 25% per annum of the reducing balance.

The taxation rate will be 30% of taxable profits.

What is the forecast after tax cash flow for year 3 (to the nearest $10)?

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Suggested Answer: C

by Lovetta at Aug 08, 2024, 03:22 AM

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Sue
21 days ago
I heard the answer is actually a secret code to unlock the hidden treasure of the ancient accountants. Who needs after-tax cash flow when you've got gold, baby!
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Jamal
14 hours ago
A) $45,890
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Virgilio
30 days ago
This question is a real brain-teaser! I wish the exam would ask about something more exciting, like time travel or flying unicorns.
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Maurine
2 days ago
I believe it's C) $46,000.
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Katie
14 days ago
I think the answer is B) $39,750.
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Yvette
1 months ago
D) $38,500 seems a bit too low, considering the initial investment and the tax depreciation. I'm leaning towards C) $46,000.
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Silva
1 months ago
I'm not sure about this one. I'll need to double-check the calculations to make sure I'm not missing anything.
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Fidelia
8 days ago
User 2: I'm not sure, I need to double-check the calculations.
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Serina
21 days ago
User 1: Have you checked the forecast after tax cash flow for year 3?
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Leanora
2 months ago
I think the correct answer is C) $46,000. The forecast data and the given information seem to align with this option.
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Fallon
21 days ago
User 2
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Hailey
22 days ago
User 1
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Candida
2 months ago
I believe the correct answer is $46,000 because of the tax depreciation and taxation rate.
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Tyisha
2 months ago
I disagree, I calculated it to be $39,750.
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Candida
2 months ago
I think the forecast after tax cash flow for year 3 is $45,890.
upvoted 0 times
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