How much did the company get richer

Assignment Help Financial Management

Reference no: EM132538466

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	Price	Opening inventory	Closing inventory
Case	50	5	13
Motherboard	200	8	2
Processor	300	4	11
Memory	100	6	4
Graphic card	50	1	13
Hard disk	150	5	10
Screen	200	3	3
DVD combo	50	7	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 finished 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%. 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?

Reference no: EM132538466

Questions Cloud

Make the necessary journal entries for the annual usage km : The company uses the revaluation model for trucks. The annual usage km and fair values are given below make the necessary journal entries.

Calculation of balloon payment for a term loan : In March, the Cross National Bank agreed to finance the purchase of a new building for Harris Tweed's men's wear shop.

What should your assessment be on the patient : Your patient C.S is 78 years old. Admitted to the nursing home you work at, with a diagnosis of dehydration. C.S., has been ordered to increase her oral fluid.

Make the necessary tax related records on december : Make the necessary tax related records on 31 December 2018. Compute the taxable income, tax payable, and tax expense for the year 2018.

How much did the company get richer : how much did the company/the lenders/the company manager (who owns 50% of the shares) get richer/poorer - You are asked by a Swedish company

What is the price? of the treasury? bond : These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of 11.6% and have five years to maturity.

Prepare a worksheet for a statement of cash flows : Prepare a worksheet for a statement of cash flows for 2017 using the indirect method. Enter the reconciling items directly on the worksheet

What part of the country did your study take place in : Survey or measure 10 people to find their heights. Determine the mean and standard deviation for this group by using the Week 3 Excel spreadsheet.

What amount of equity income cantle report for investment : The equipment had a useful life of six years .What amount of equity income would Cantle report for its investment in Rockton for 20X3?

User Account

All Pages