What impact do these transactions have on EBITDA

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Reference no: EM132209176

Question - 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: E XERCISES SECTION 1 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 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: EM132209176

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