Fall 16 Q13 Example

I am confused your example says Slow paying ratio = Recoverables on paid over 90 days overdue / (Total Recoverables
on paid )

But isn't the actual slow paying ratio:
Slow paying ratio = Recoverables on paid over 90 days overdue / (Total Recoverables
on paid + Amounts received in last 90 days), all excluding disputed balances

It is done this way in https://www.battleacts6us.ca/pdf/Exam_(2016_2-Fall)/(2016_2-Fall)_(13).pdf

Comments

  • Yes, you're correct. I pulled the slow-pay formula from the examiner's report for 2017.Spring Q14, but the examiner's report had an error. (The final answer was correct because the missing term: Amts recvd in last 90 days = 0 anyway.)

    Thanks for noticing this. I believe I've now made the appropriate corrections in the pdf examples and in the practice template.

  • This doesn't affect the solution but just trying to understand the mapping of the values given in the exam question to your handy tables. How did you arrive at P^n(B) = 155? I would have guessed this was = 135?

  • For some reason, I had added the Pn(B) amount (135) to the amount received in the prior 90days (20) to get 155. Not sure now why I did that. Looks like just a typo. Anyway, I've edited the pdf to show 135 for Pn(B). Thx!

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