Fibertech GmbH is a distributor of outdoors technical clothing. The company outsources the production of clothing to external manufacturers in Bangladesh and sells the clothing under its own brands. Below you are provided with the balance sheet at the end of x3 and x4, and the profit & loss and cash T-accounts for x4. Note that some numbers are missing in the T-accounts. You'll have to infer them in the questions below.

Fibertech GmbH Balance sheets at 31 December x3 and x4 (amounts in 000)

Dec 31, x3Dec 31, x4Non-current assetsBrands5090Land200200Building and equipment, gross540580less: Accumulated depreciation-484-474Building and equipment, net56106Total non-current assets306396Current assetsInventories250350Accounts receivable400500Prepaid insurance46Cash340239Total current assets9941095Total assets13001491Shareholders' equityShare capital170170Retained profits120426Total shareholders' equity290596Non-current liabilitiesLong-term bank loan600450Current liabilitiesShort-term portion of long-term bank loan150150Accounts payable200250Taxes payable3525Interest payable2520Total current liabilities410445Total liabilities and shareholders' equity13001491

Profit and loss year x4

DebitCredit- BBCost of goods sold14002200Total salesDepreciation expense4015Gain on sale of buildings and equipmentSelling and administration salaries240Insurance expense?Interest expense?Income taxes?336Net Income

Cash

DebitCreditBB340Receipts from customers2100?Payments to suppliersProceeds from sale of buildings and equipment45120Purchase of equipment240Payments of salaries36Prepayments of insurance60Payments of interest on loans150Loan repayment120Payments of taxes?Payments of dividends40Purchase of brandEB239

Additional note:

Fibertech estimates its brands have an indefinite life and consequently they are not amortized.

Compute the following items for year x4:(using T-accounts might be helpful)

0) Compute the purchases on credit from suppliers in x4:(0 points. Please note this is a sample question.)

(a) 1,300

(b) 1,500

(c) 1,450

(d) 1,600

Solution:with the help of the relevant T-account

Inventories

BB250Purchases15001400COGS from profit and loss T-accountEB350

Purchases = COGS + (EB - BB) = 1,400 + (350 - 250) = 1,500

Question:

Compute the payments to suppliers in x4:

1 point

1600

1450

1550

1500

2.

Question2

Compute the insurance expense in x4:

1 point

36

34

38

4

3.

Question3

Compute the net book value of the buildings & equipment sold in x4:

1 point

80

60

70

30

4.

Question4

Compute the interest expense in x4:

1 point

60

25

0

55

5.

Question5

Compute the income tax expense in x4:

1 point

120

10

35

110

6.

Question6

Compute the dividend paid in x4:

1 point

30

336

642

306

7.

Question7

Compute the gross margin in x4:

1 point

501

560

800

1400

8.

Question8

Compute the operating profit in x4:

1 point

560

501

800

541

9.

Question9

Compute the profit before taxes in x4:

1 point

446

431

501

336

10.

Question10

Compute the cash flow from investing in x4:

1 point

-160

-115

-40

-120

11.

Question11

Compute the cash flow from financing in x4:

1 point

-150

-240

-180

-101

12.

Question12

Compute the cash flow from operations in x4: (Note: Fibertech treats interest payments as a cash flow from operations.)

1 point

374

410

234

194