Chapters 6–11 cold, in the paper’s mix

The paper you are about to sit

The final is worth 35 % and must be passed. It covers chapters 6–11 — Modules 8 to 13 — with chapters 1–5 assumed: expect one IFRS-versus-ASPE stem, and expect a decision question to touch an impairment indicator or a provision from the midterm half. The mix is roughly 30 % discriminative recall (which framework, which perspective, which cost is relevant, which WACC slip), 30 % worksheets from a given statement pack or table (a ratio set, the indirect operating section, the cash conversion cycle, a budgeted line, a keep/drop differential, an NPV) and 40 % written — explain, recommend, justify, in 4–8 marks each.

Pacing a must-pass paper

Read the whole paper first and mark the worksheets; they are the surest marks and the ones most easily lost to a slip under time pressure. Do the worksheets second, labelling every line the way the statement names it and writing the convention you used (average balances, 365 days, market weights, t0 undiscounted). Do the recall items quickly and do not revisit them. Leave the written answers a third of the time and answer them in the shape the marks reward: the figure, the basis, the caveat, the recommendation. A written answer that gives a number and a reason earns more than one that gives four reasons and no number.

This lesson

No worked example. Everything below is cold, on Muskoka Timber Ltd.’s 2026 figures, and the answers are revealed only after you commit. If a worksheet goes wrong, the lesson that owns it is the place to go back to: ratios to lessons 9.2 and 9.5, the CCC to 10.6, keep/drop to 12.2, NPV to 13.5, the memo to 13.6.

Muskoka Timber Ltd. — 2026 (CAD thousands)
Net income                210      Revenue                 2,800
Average total assets    1,750      Average receivables       280
Cost of goods sold      1,680      Average inventory         420
Average payables          210

Sudbury yard: contribution margin 320,000; avoidable fixed costs 250,000;
              the site could be sublet for 90,000 a year if closed
Kiln:         500,000 today; 200,000 a year for three years; WACC 8 %;
              3-year annuity factor at 8 % = 2.5771

The checkpoint at the end is the course’s last. When you can clear it cold, you can sit the final.