Exercise no. 2 / COMFOE
SUBJECT: Economic and Financial Management
AIMS
Financial Statements: understanding and organization
DESCRIPTION OF THE ACTIVITY
These are the accounts of the Financial Statements of your company, alphabetically organized, at December of last year.
Please draw up the Balance sheet and Income Statement formally organized and understand the meaning of every account.
|
P&L
|
Advertising
|
10
|
|
P&L
|
Interest on payables
|
10
|
|
P&L
|
Amortization of intangible assets
|
5
|
|
NCA
|
Land
|
200
|
|
NCA
|
Buildings
|
800
|
|
NCA
|
Machinery
|
300
|
|
CA
|
Cash
|
95
|
|
CL
|
Payables for the rendering of services
|
20
|
|
P&L
|
Changes in FG inventories (+)
|
40
|
|
CA
|
Raw materials
|
50
|
|
P&L
|
Changes in RM inventories (-)
|
30
|
|
P&L
|
Raw materials purchased
|
800
|
|
NCA
|
Computer software
|
40
|
|
P&L
|
Repairs and maintenance
|
15
|
|
P&L
|
Corporate tax
|
5
|
|
NE
|
Reserves
|
600
|
|
CL
|
Corporate tax payable
|
5
|
|
P&L
|
Salaries
|
105
|
|
CL
|
Current debt with financial institutions
|
120
|
|
NE
|
Share capital
|
850
|
|
CA
|
Current investment in equity instruments
|
10
|
|
P&L
|
Social Security contributions by the co.
|
30
|
|
P&L
|
Depreciation of PPE
|
10
|
|
CL
|
Social Security, payables
|
5
|
|
CA
|
Finished goods
|
70
|
|
CL
|
Suppliers
|
40
|
|
P&L
|
Finished goods sold (revenues)
|
1000
|
|
CA
|
Trade receivables
|
100
|
|
P&L
|
Income from financial investments
|
5
|
|
|
|
|
Questions:
1. How much did shareholders invest directly in the company?
2. Do you know whether or not the company had profits further in the past? Why?
3. How much is the debt with Social Security at the end of the year?
4. Do we collect all our sales cash at sight(即期)?
5. How much has “Raw material consumption” been this year?
6. How much is the book value of the company at Dec 31st?
7. Assume that Total Reserves at the end of previous year were 550 and profits were 75. Has this company pay dividends this year for the profit they had last year? How much?