Post by masquedefer on Aug 15, 2014 11:02:22 GMT
Hello - I wonder if some of the experienced investors can help me getemy head around a couple of accounting matters, so that I can better understand the Loan Part financial information pages. I have tried to Google them it but the examples are based on more comprehensive balance sheet & P&L accounts than those provided by FC.
1) I've noticed that in the Q&A page on loan requests,there sometimes questions about the extent factoring the company undertakes. Is my understanding correct, viz: If company factors say £100k of its receivables @ £10%, then the balance sheet current assets will receive a credit of £90K and the current debts a debit of £100k. In which case (apart from the £10% (£10k) fdactoring/transaction loss to the company, why is it such a big issue for some investors? OR could there be a situation where a company is not revealing a big factoring debt yet to be repaid?
2) How can I calculate the dividend payout from two years of FC simplified accounts which don't show this or retained earnings. I'm guessing that it can somehow be worked out even from the simplified FC accounts (something like Shareholders equity moves in line with profit, dividends paid out and changes in borrowings plus any other items............
)
Thank you in advance.
1) I've noticed that in the Q&A page on loan requests,there sometimes questions about the extent factoring the company undertakes. Is my understanding correct, viz: If company factors say £100k of its receivables @ £10%, then the balance sheet current assets will receive a credit of £90K and the current debts a debit of £100k. In which case (apart from the £10% (£10k) fdactoring/transaction loss to the company, why is it such a big issue for some investors? OR could there be a situation where a company is not revealing a big factoring debt yet to be repaid?
2) How can I calculate the dividend payout from two years of FC simplified accounts which don't show this or retained earnings. I'm guessing that it can somehow be worked out even from the simplified FC accounts (something like Shareholders equity moves in line with profit, dividends paid out and changes in borrowings plus any other items............
)Thank you in advance.