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Mini-scenario 1 The questions all relate to transactions undertaken by Struli GmbH, a German business. Required: 1. The CFO uses the company's overdraft to pay
Mini-scenario 1 The questions all relate to transactions undertaken by Struli GmbH, a German business. Required: 1. The CFO uses the company's overdraft to pay a supplier 20,000. What is the impact on the net assets of the company in monetary terms? (2 marks) 2. 3. The Board of Directors decides that old inventory costing 18,000 is to be written off as the inventory is no longer sellable (it has gone out of fashion). Identical inventory in the past was sold to customers for 31,000. What is the impact on the net assets of the company in monetary terms? (2 marks) The company repays a 45,000 loan by taking out another loan for 30,000 and raising 15,000 new equity. What is the impact on the net assets of the company in monetary terms? (2 marks) One of the directors has loaned the company 25,000 of her own money. What is the impact on the net assets of the company in monetary terms? (2 marks) A customer has returned unwanted goods and the company has agreed to refund the customer in full. These goods were sold to the customer for 10,000. There is nothing wrong with the goods and they will be offered for sale to future customers. The goods originally cost 7,000. What is the impact on the net assets of the company in monetary terms? (2 marks) 4. 5
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