EXERCISE 1 Po Alfa srl is a company that arts. At the end of 2018, it has the following Balance Sheet: Beheer 4700 ASSETS 2018 Fixed assets Raw materials inventories WIP inventories Final product inventories Accounts Cash LIABILITIES 2018 700.000 Paid in capital 350.000 Retained earnings 530.000 Net income 550.000 Credit risk fund 300.000 Short-term bank debt 700.000 Long-term bank debt Current liabilities 3.130.000 Total liabilities 400.000 200.000 350.000 80.000 ' Oceivables 530.000 X 1.000.000 570.000 3.130.000 Total assets 10 1165 pione_24726 1070_327088 $24700 5247068 37068 only. 3 During the 2019, the following events take place: 1.000.000 of revenues are realized and the 70% is cashed immediately. Accounts receivables in the initial Balance Sheet are cashed at 90%, Raw materials' purchases are 250.000 and the 80% is paid cash At the end of the year raw materials inventory is 450,000, WIP are completed and final product inventories are 420,000. for half, sold for 150.000. At 31/12/2019 it is bought a new machine to cover the sold one at the price of 500.000, financed by a new bank debt that cover the 60% of the purchase, meanwhile the rest is paid with cash. Annual amortization is 50.000. At 31/12/2019 50.000 of current liabilities are paid and 10% of the long-term debts present at the beginning of the period. Interest tax is 6% with the same reasoning as the debts. of them paid completely. 601 st sep 10 a $24713 The 1 July it is sold an old machine, purchased at 250.000 ao Services costs are 30.000, labour's costs are 25.000, 4700 We pay all payable accounts from the previous year Company distributes net income of the previous year as dividends. Taxes rate is 50% and it is paid cash only Based on this information, prepare Income Statement (selling cost classification) and Balance sheet for 2019. Accounts receivables of the initial Balance Sheet are cashed at 90%, meanwhile the 10% is uncollectible. What are the correct registrations to make? (a) Accounts receivables decrease by 270.000, cash increases by 270.000. (b) Accounts receivables decrease by 300.000, cash increases by 270.000, credit risk fund decreases by 30.000. (c) Accounts receivables decrease by 300.000, cash increases by 270.000, 30.000 as cost in the Income Statement. (a) Accounts receivables decrease by 300.000, 300.000 as cost in the Income Statement. (e) Accounts receivables decrease by 300.000, cash increases by 300.000