Exercise 1. You are the manager of a no profit organization and you have to prepare a Statement of activities income statement) and a Statement of financial position for the year just passed (year T). Prepare these 2 accounting documents and find how much are, according to the numbers, the operating income (EBIT), the net profit (if any) and the value of net assets of your organisation Total revenues are 400.000 Costs: total cost of labour is 160,000 per year. Depreciation and Amortization for past investments is 75,000. Additionally at the beginning of year t you have bought a new machinery that costed you 125,000. According to your estimates, the machine will last 5 years. Cost of good and services is 120,000 Taxes are 10% of the pre-tax profit Concerning your financial position, you know the following You own 10.000 of Treasury bond (10 years maturity) (interest rate=6%) You borrow 30.000 on a short term basis interest rate=10%) 80.000 on a long term basis interest rate=12%) Then prepare a Statement of financial position (asset/liabilities), knowing that you have the following credits and debts positions: versus your clients and suppliers: . 50.000 of receivables 80.000 of payables the value of the land and building is estimated in 35.000 the net value of the actual equipment is 200.000 (this value include also the value of the new machinery bought at the beginning of year) Report both the Statement of activities and the Statement of Financial position Report also the value of Report also the value of added value generated, EBIT Profit Net assets both for the year and for the year 1-1 Current liabilities Current assets