p=4.2016 60 parts. At the end of 2018, it has the following Balance Sheet: EXERCISE 1 Alfa srl is a company that ASSETS 2018 Fixed assets Raw materials inventories WIP inventories Final product inventories Accounts receivables Cash role die Noor Soosa LIABILITIES 2018 700.000 Paid in capital 350.000 Retained earnings 530.000 Net income 550.000 Credit risk fund 300.000 Short-term bank debt 700.000 Long-term bank debt Current liabilities 3.130.000 Total liabilities 24 O the 400.000 200.000 350.000 80.000 530.000 1.000.000 570.000 3.130.000 Total assets 52420 103A i1070. 1701 st During the 2019, the following events take place: 1.000.000 of revenues are realized and the 70% is cashed immediately. Accounts receivables in the initial Balance Sheet are cashed at 90%, meanwhile the 10% is uncollectible. Raw materials' purchases are 250.000 and the 80% is paid cash only. At the end of the year raw materials inventory is 450,000, 300,000 of WIP are completed and final product inventories are 420,000. The 1 it is sold an old machine, purchased at 250.000, amortized for half, sold for 150.000. At 31/12/2019 it is bought a new machine to cover the sold one at the price of 500.000, financed by a new bank debt that cover the 60% of the purchase, meanwhile the rest is paid with cash. Annual amortization is 50.000. At 31/12/2019 50.000 of current liabilities are paid and 10% of the long-term debts present at the beginning of the period. Interest tax is 6% with the same reasoning as the debts. Services costs are 30.000, labour's costs are 25.000, both of them paid completely We pay all payable accounts from the previous year Company distributes net income of the previous year as dividends. Taxes rate is 50% and it is paid cash only Based on this information, prepare Income Statement (selling cost classification) and Balance sheet for 2019, 1070 $270 11/21 1020 107524706 04068 (063 010 At 31/12/2019 it is bought a new machine to cover the sold one at the price of 500.000, financed by a new bank debt that cover the 60% of the purchase, meanwhile the rest is paid with cash. Annual amortization is 50.000. What are the correct registrations to make? (a) Cash decreases by 500.000, fixed assets increase by 500.000. (b) Cash decreases by 200.000, fixed assets increase by 500.000, 300.000 as cost in the Income Statement. O (c) Cash decreases by 200.000, long-term debts increase by 300.000, fixed assets increase by 450.000, 50.000 as cost in the Income Statement. 0 (d) Cash decreases by 200.000, long-term debts increase by 300.000, fixed assets increase by 500.000. 0 (e) Cash decreases by 200.000, long-term debts increase by 300.000, fixed assets increase by 450.000