error in mock exam afternoon session afternoon, solution, capital, current, assets

hoangvu90

this is soooooo irritating. Q51: calculate FCFE. Simple eh? EXCEPT for the fact that the solution shows the calculation for changes in working capital as Changes in current assets less changes in current liabilities. BUT for FCF, changes in nwc should expressly exclude changes in cash, short term notes, and the current portion of long term notes. (CFAI Volume 4 p391 last paragraph). so the mock exam solution is wrong, imho.