Reference no: EM132573530

You are asked by a Swedish company that assembles computers to draw up a by-nature and by-function income statement for year n . You are provided with the following information: Retail price of a PC: €1500. Cost of various components:

                           Parts Case          Motherboard           Processor       Memory Graphic card       Hard disk           Screen         DVD combo

Price                        50                        200                    300               100                          50                      150         200      50

Opening inventory          5                       8                       4                     6                          1                         5              3      7

Closing inventory               13                   2                         11                   4                       13                        10               3   19

Over the financial period, the company paid out €60 000 in salaries and social security contributions of 50% of that amount. The company produced 240 PCs. Closing stock of f inished products was 27 units and opening stock 14 units. At the end of the financial period, the manager of the company sells the premises that he had bought for €200 000 three years ago (which was depreciated over 40 years) for €230 000, it now occupies old premises that are fully depreciated, and pays off a €12 000 loan on which the company was paying interest at 5%.

Question 1: What impact do these transactions have on EBITDA, operating profit and net income? Tax is levied at a rate of 35%. Over the course of the financial period, by how much did the company/the lenders/the company manager (who owns 50% of the shares) get richer/poorer?