Exercise 1. The following information is available for company ABC as of 31December N: Land 500 Additional paid in capital (share premium) 150 Advance payments to suppliers (from which for inventories 200) 300 Licenses 50 Customers 600 Prepayments 80 Legal reserve 70 Dividends payable 100 Depreciation of plant and machinery 50 Investments in associates 700 Issued capital paid in (Share capital paid in) ?? Sundry debtors 100 Raw materials 60 Plant and machinery 700 Long term bank loans (of which becoming due in less than one year 150) 525 Write downs of raw materials 5 Cash at bank 30 Provisions for guarantees to customers 500 VAT payable 50 Long term receivables 100 Buildings 300 Development costs (assets recognition criteria are fulfilled) 100 Other reserves 700 Salaries payable 200 Depreciation of buildings 50 Short term bank loans 150 Finished goods 180 Profit for the period 250 Advances received from customer 100 Short term financial investments 150 Suppliers payable 100 Bills of exchange payable 30 Other taxes payable 50 Deferred income (venituri amanate) 100

Required: a. Draw up the balance sheet b. Calculate issued capital (paid in capital).

Exercise 2. Using the following elements prepare an income statement by function and by nature (you must obtain the same result with both method.

1. Personal expenses 650

a.1. for production 400

a.2. for distribution 150

a.3. for administration 100

2. Interest expenses 40
3. row material expenses 150
4. income tax expenses 150
5. merchandise expenses 10
6. consumable expenses 300

f.1. for production 200

f.2. for distribution 70

f.3. for administration 30

7. Finish goods revenues 1.400
8. Other op expenses.210
9. Financial expenses 46
10. Other taxes expenses 20
11. Finish goods -31.12.N 200
12. Costs CSS 210:

l.1. for production 130

l.2. for distribution 50

l.3. for administration 30

13. INTEREST REVENUE 60
14. Services expenses 10
15. other financial revenue 10
16. seles revenue 50
17. depreciation expenses 250

q.1. for production 180

q.2. for distribution 20

q.3.for administration 50

18. revenue from dividends 120