[Maverick]

Folks, I sent the following message to Becker. Hoping for a reply soon. If you are a Becker user did you notice the problem. Maybe you can help me identify what I missed? If so, thanks. The fact pattern are the same; only different numbers plugged in. None of them were in Becker’s updates. Here is the msg I sent to Becker:

The fact pattern in CPA-04092 and CPA-04082 are practically the same. They both provide the old credit policy and the new/current credit policy; the average collection period for both credit policies; the variable cost ratio; and the required rate of return; using 360 days. Also, both questions required no tax implications and asked for the carrying cost of the additional investments in receivables. However, the solutions were calculated differently. CPA-04092 did not include the average collection period in its calculations whereas CPA-04082 did. There is no difference in the fact pattern for these two questions. The only difference is the format of the questions and the numerical values provided. Please provide me with the correct solutions and explanations to the problems.

F - Passed...THANK YOU, LORD. GLORY TO GOD.
B - Passed...THANK YOU, LORD. GLORY TO GOD.
A - Passed...THANK YOU, LORD. GLORY TO GOD.
R - Passed...THANK YOU, LORD. GLORY TO GOD.

Ethics - 95

Licensed CPA

I COULD NOT HAVE DONE THIS WITHOUT MY LORD. THANK YOU.

"According to your faith will it be done to you." Matthew 9:29

[Excited_CPA]

@Maverick

I was just studying this part for BEC too and saw your post. I googled around and it looks like the solutions mentioned are the same.

For CPA-04092, it looks like they found the DIFFERENCE between the avg. AR, and THEN multiplied by the proper required rate. They did find the average collection period in their calculation. For Old Policy, they calculated (30days/360total) * $3.6 million = $300k avg. AR.

For CPA-04082, it looks like they multiplied by the proper required rates for each, and THEN took the DIFFERENCE.

It actually took me awhile to see that the solutions were the same too (I couldn't figure out where they used the avg. collection period at first). But in both, they used the change in days to find the average AR, they used the required return % to find the cost, and they took the difference between the two.

Hope this helps!

BEC 04/14/12 87
FAR 08/28/12 88
AUD 10/06/12 94
REG 02/09/13 91

[Maverick]

ExcitedCPA, Thanks for replying. I will look over the problems with your explanation as an aide.

Thank you so much. I really appreciate it. Good luck on your exams.

F - Passed...THANK YOU, LORD. GLORY TO GOD.
B - Passed...THANK YOU, LORD. GLORY TO GOD.
A - Passed...THANK YOU, LORD. GLORY TO GOD.
R - Passed...THANK YOU, LORD. GLORY TO GOD.

Ethics - 95

Licensed CPA

I COULD NOT HAVE DONE THIS WITHOUT MY LORD. THANK YOU.

"According to your faith will it be done to you." Matthew 9:29

[Author]

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