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!