I. Please fill in the table according to the following economic transactions! 1. We make a bank transfer of EUR 8,450 as extension service fee. 2. We have bought fuel and spare parts for 60,960 and paid it on account. 3. Our company pays 7000 euros per person in cash for 96 employees. 4. The annual depreciation of our plantation is EUR 33,000 and that of horticultural machinery is EUR 22,000. 5. Our 736 dairy cows produce an average of 9,310 litre milk/cow, we sell it at 29 cents per litre. We also sell 279 culled cows for 522 each. Milk value is paid in cash the culled cow value is transferred 15 days after the sale. Milk value =73693100.29=1987126.4 EUR Cash Culled cow value =279522=145638 account receivable 6. Our company bought seeds, fertilizers and pesticides for 352,070 euros, with a 20-day payment deadline but two-third of the bill had to be paid immediately. Supplies =352070 Cash paid =2/3352070=234713.33 Account payable =1/3352070=117356.67 7. We harvested rapeseed from 60 ha, the average yield was 2.7 t/ha, the selling price was 348EUR/t. The crop was sold, half of which was paid immediately and the rest after 15 days. Crop revenue =602.7348=56376 Cash received =28188 Account receivable =28188 8. The average yield is 7 tha in our 7 -hectare strawberry orchard. 45% of the fruit is first class (price 3.8 EUR /kg ), the rest is second class (price 2.9 EUR / kg). Sales arrive in an average of 25 days, and eventually 5% is not paid. 1 class strawberry revenue =700070.453.8=83790 2 class strawberry revenue =700070.552.9=78155 Total strawberry revenue =161945 Account receivable =0.95191945=153847.75 5% not paid = bad debt expense =8097.25 9. We can get a 5% deposit interest on the current amount of cash, and we have to pay 7% interest on the cash loan. Current cash =1768251.07 - Ncleivauts tunurci - ival vpciaumg icrcuucs ncucivancs =2496677.95/338503.75=7.376 - Average collection period = Days in period (365)/ Receivables turnover =365/7.376=49.485 - Net profit margin = Net income/ Total operating revenues = =(2496677.9578547.25)/2496677.95=0.969 - Debt ratio = Total debt/ Total assets =191646.67/ 2,767,128.57=0.0693 - Debt-to-equity ratio = Total debt/ Total equity =191646.67/ 2575481.9=0.0744 - Equity multiplier = Total assets / Total equity =2,767,128.57/ 2575481.9=1.0744 - Return on equity = Net income/ Average stockholders equity =2418130.7/2575481.9=0.939 - Return on assets = Net income/Average total assets = (2496677.9578547.25)/2,767,128.57=0.874 How much is the debt ratio? Debt ratio =3454345/9135724=0.378 How much is the ROA and ROE if net income is 544,500 ? ROA= Net income/Average total assets = 544500/9135724=0.0596 ROE= Net income/ Average stockholders' equity = 544500/5,681,379=0.0958 How much is Total asset tumover if total operating revenues is 897,300? Total asset tumover = Total operating revenues/ Total assets = 897300/9135724=0.0982 Accounting Equation checks: Total assets = Equipment + Cash + Supplies + Acc. Receivable = 2,767,128.57 Liabilities + Capital - Drawings + Revenue - Expenses 2,767,128.57 Total equity =16866011308.8+2496677.9578547.25= 2575481.9 After accounting for economic transactions, calculate the indicators below: - Current solvency ratio = Total current assets/ Total current liabilities =2767128.57/191646.67=14.439 - Quick solvency ratio= Quick assets/ Total current liabilities = 14.439 - Quick assets = Total current assets - Inventories = 2767128.57 - Total asset turnover = Total operating revenues/ Total assets = 2496677.95/2767128.57=0.902 - Receivables turnover = Total operating revenues/ Receivables =2496677.95/338503.75=7.376 - Average collection period = Days in period (365)/ Receivables turnover =365/7.37649.485 - Net profit margin = Net income/ Total operating revenues = =(2496677.9578547.25)/2496677.95=0.969 - Debt ratio = Total debt/ Total assets =191646.67/ 2,767,128.57=0.0693 - Debt-to-equity ratio = Total debt / Total equity =191646.67/ 2575481.9=0.0744 I. Please fill in the table according to the following economic transactions! 1. We make a bank transfer of EUR 8,450 as extension service fee. 2. We have bought fuel and spare parts for 60,960 and paid it on account. 3. Our company pays 7000 euros per person in cash for 96 employees. 4. The annual depreciation of our plantation is EUR 33,000 and that of horticultural machinery is EUR 22,000. 5. Our 736 dairy cows produce an average of 9,310 litre milk/cow, we sell it at 29 cents per litre. We also sell 279 culled cows for 522 each. Milk value is paid in cash the culled cow value is transferred 15 days after the sale. Milk value =73693100.29=1987126.4 EUR Cash Culled cow value =279522=145638 account receivable 6. Our company bought seeds, fertilizers and pesticides for 352,070 euros, with a 20-day payment deadline but two-third of the bill had to be paid immediately. Supplies =352070 Cash paid =2/3352070=234713.33 Account payable =1/3352070=117356.67 7. We harvested rapeseed from 60 ha, the average yield was 2.7 t/ha, the selling price was 348EUR/t. The crop was sold, half of which was paid immediately and the rest after 15 days. Crop revenue =602.7348=56376 Cash received =28188 Account receivable =28188 8. The average yield is 7 tha in our 7 -hectare strawberry orchard. 45% of the fruit is first class (price 3.8 EUR /kg ), the rest is second class (price 2.9 EUR / kg). Sales arrive in an average of 25 days, and eventually 5% is not paid. 1 class strawberry revenue =700070.453.8=83790 2 class strawberry revenue =700070.552.9=78155 Total strawberry revenue =161945 Account receivable =0.95191945=153847.75 5% not paid = bad debt expense =8097.25 9. We can get a 5% deposit interest on the current amount of cash, and we have to pay 7% interest on the cash loan. Current cash =1768251.07 - Ncleivauts tunurci - ival vpciaumg icrcuucs ncucivancs =2496677.95/338503.75=7.376 - Average collection period = Days in period (365)/ Receivables turnover =365/7.376=49.485 - Net profit margin = Net income/ Total operating revenues = =(2496677.9578547.25)/2496677.95=0.969 - Debt ratio = Total debt/ Total assets =191646.67/ 2,767,128.57=0.0693 - Debt-to-equity ratio = Total debt/ Total equity =191646.67/ 2575481.9=0.0744 - Equity multiplier = Total assets / Total equity =2,767,128.57/ 2575481.9=1.0744 - Return on equity = Net income/ Average stockholders equity =2418130.7/2575481.9=0.939 - Return on assets = Net income/Average total assets = (2496677.9578547.25)/2,767,128.57=0.874 How much is the debt ratio? Debt ratio =3454345/9135724=0.378 How much is the ROA and ROE if net income is 544,500 ? ROA= Net income/Average total assets = 544500/9135724=0.0596 ROE= Net income/ Average stockholders' equity = 544500/5,681,379=0.0958 How much is Total asset tumover if total operating revenues is 897,300? Total asset tumover = Total operating revenues/ Total assets = 897300/9135724=0.0982 Accounting Equation checks: Total assets = Equipment + Cash + Supplies + Acc. Receivable = 2,767,128.57 Liabilities + Capital - Drawings + Revenue - Expenses 2,767,128.57 Total equity =16866011308.8+2496677.9578547.25= 2575481.9 After accounting for economic transactions, calculate the indicators below: - Current solvency ratio = Total current assets/ Total current liabilities =2767128.57/191646.67=14.439 - Quick solvency ratio= Quick assets/ Total current liabilities = 14.439 - Quick assets = Total current assets - Inventories = 2767128.57 - Total asset turnover = Total operating revenues/ Total assets = 2496677.95/2767128.57=0.902 - Receivables turnover = Total operating revenues/ Receivables =2496677.95/338503.75=7.376 - Average collection period = Days in period (365)/ Receivables turnover =365/7.37649.485 - Net profit margin = Net income/ Total operating revenues = =(2496677.9578547.25)/2496677.95=0.969 - Debt ratio = Total debt/ Total assets =191646.67/ 2,767,128.57=0.0693 - Debt-to-equity ratio = Total debt / Total equity =191646.67/ 2575481.9=0.0744
