Examples Financial statements lecture 4

(5p) 1. The following information relates to the balance sheet of Company Test at 31
December 2011:
1. Finished goods 300
2. Raw materials 400
3. Long term bank loans 1800 (of which 200 payable within one year)
4. Licenses 700
5. Cash at bank 200
6. Accounts payable (suppliers) 700
7. Consumables 75
8. Write down of raw materials 50
9. Share capital = ?
10. Accounts receivables (customers) 800
11. Reserves 600
12. Equipment 3200 (carrying amount)
13. Amortization of licenses 100
14. Cash in hand 100
15. Provisions 50
16. Merchandise 300
17. Deferred income 100
18. Profit for the year 100
Required:
1) (1p) Determine the value of the inventories of Company Test
2) (2.7p) Prepare a classified balance sheet under the vertical layout
3) (1.3p) Determine the value of the Companys share capital (use the formulae in the
vertical layout balance sheet in (2) above
2. The following information is relevant to the Example Co.s IS for the financial year ended
on Dec 31, 2010 (all information is given in lei):
- Sales 30.000;
- raw materials: Opening balance 1.000; Ending balance 2.000; purchases 13.000;
- wages 10.000 (of which 5.000 for production, 3.000 for distribution, and 2.000 for
administrative personnel);
- depreciation 5.000 (of which 4.000 for production equipment and 1.000 for distribution
equipment);
- finished goods: Opening balance 5.000; ending balance 4.000.
Prepare an income statement by function and an income statement by nature.
(4p) 3. Use the following information to prepare an income statement by function and an
income statement by nature, while determining the entitys profit or loss under both layouts:
- raw materials: Opening balance 2.000; Ending balance 4.000; purchases 15.000;
- finished goods: Opening balance 3.000; ending balance 2.000;
- interest expense 1.000;
- wages 16.000 (of which 10.000 for production, 4.000 for distribution, and 2.000 for
administrative personnel);
- depreciation 10.000 (of which 70% for production, 20% distribution, 10% administration
purposes);
- sales 60.000;
- packaging costs 500;
- energy, fuel and postage costs 10.000 (of which 8.000 for production, 1.000 distribution,
1.000 administration purposes).