Question 1 (10 points) Enter in the table the key concept that corresponds to each definition (1 point per answer). Definitions Concepts 1 A term for companies whose shares is listed on the stock exchange. 2 The name of the approach that should be used to process revisions to accounting estimates. 3 A term for items that are quickly convertible into money and whose value is not volatile. 4 The name used to refer to a decrease in cash (oar cash outfeed). 5 Its role in joint-stock companies is to look after the interests of shareholders. 6 The name generally given to actions that have certain fundamental rights including the right to vote. 7 Excess of the issue product on the face value of a stock. 8 Qualitative used to designate an action that is not fully paid for. 9 The name given tractions acquired by a company, but which were cancelled or resold at a later date. 10 The name of the asset used to paint a cash flow picture that the period's earnings are adjusted to extract non-cash items. Question 2 (10 points) Include in the following table whether the statement in question is True or False (1 point per answer). Statements True or False 1 Gains and losses generated from capital transactions affect the result of the period. 2 The conversion privilege associated with convertible preferred shares is, as in the case of bonds, a separate position from equity. 3 A company's declaration of a dividend in shares will affect its RNDs downwards, thus its total equity. 4 A company's declaration of a cash dividend will not affect the number of shares outstanding, and therefore the book value of the shares. 5 The revisions to accounting estimates must be accounted for retroactively. 6 The cash flow table is an important financial statement for anyone who wants to study the profitability of a business. 7 Under no circumstances should companies change accounting methods in order to preserve the comparability of their financial statements. 8 Under the indirect method, the gain on the disposal of a fixed asset must be removed from the result of the period in the operating activities section and added to the investment activities section as cash inflow. 9 Preferred shares will take precedence over common shares when dividends are distributed. 10 The number of shares allowed will always be greater (or equal) than the number of shares issued and outstanding. Question 3 (7 points) Here is the statement of Azure's result for the X2 exercise. Azure Company Result - X2 Turnover Cost of goods sold $200,000 120 000 Gross margin 80 000 S0 000 Operating expenses (including amortization charge of $21.000) Result $30,000 In X2, the following accounts increased: Accounts receivable: Stocks: Accounts receivable: $17,000 $11,000 $13,000 Prepare the operating cash flow section of Azure's cash flow table for X2 using adirectmethod. Make your calculations clear. Direct method Question 4 (18 points) Here is the information needed to prepare The Gras Cash Flow Table for the year ended December 31 X2 Fat Society Financial situation states X2 X1 (in dollars) (in dollars) Current assets Cash 383 0 740 720 100 50 500) 560 Investments - Treasury Bills Customers (net) Stock of goods Non-current assets Field Buildings Accumulated Amortization - Real Estate Patent (net) Total assets 150 910 (200) 105 2 808 70 600 (120) 130 1 890 Current liabilities Effect to pay Suppliers Taxes payable Non-current liabilities - Effect due in X4 Equity Shares Unselected results Total liabilities and capital 320 420 40 200 320 340 20 200 1300 528 2 808 700) 310 1 890 Fat Company Earnings status pour year ended December 31 X2 (in dollars) Sales 3 800 Cost of goods sold 1 200 Wages and payroll taxes 725 Heating and electricity 75 Depreciation 80 Property taxes 19 Amortization -Brevet 25 Miscellaneous expenses 10 Interest expense 30 Income tax 818 Full-year result 818 Answer the following questions (3 points per question). 1. The to: expense for the purchase of the goods amounts a) S1,36 0 b) $1.920 c) S12 00 d) $12,800 AaBbCcDdEt AaBbcdl Accentuation lev Normal 2. Sales revenues are: a) $3,800 b) $3,060 c) $3,560 d) $500 I 3. Income tax disbursements amount to: a$818 b) $7 98 c) $7,78 d) $4,0 4. Net returns from operating activities amounted to: a) $2,937 b) $673 c) $623 d) $1,903 5. Net outflows from investment activities amount to: a) $310 b) $80 c) $390 d) $340 6. Net outflows from fundraising activities amount to: a) $6,000 b) $1,300 c) $7,000 d) Nile Aa A 321 T AaBhCcDdE AaBbCeDat AaBbCeDe AaBb COD DE AaE lev A. Accentuation Normal EEEE Sous-titre Titre Question 5 (15 points) Here is the capital section of Solo as of January' x2. I Preferred shares (8%), face value of $100; 10,000 authorized shares; 4,000 shares issued $400,000 Common shares, face value of $2; 200,000 shares authorized; 80,000 shares issued. 160 000 Premium - Preferred Shares 20 000 Premium - Common Shares 940 000 Unselected results 780 000 Total capital $2,300,000 Here are the equity transactions that took place during X2: Issue of 100 common shares in exchange for equipment. The JV of the shares at the time of the exchange was $12 per share. Issue of 1,000 common shares and 100 preferred shares for a flat price of $24,500. The common share JV at the time of issue was $14 per share. > Issue of 2,000 preferred shares at $102 per share. > Repurchase of 1,000 common shares at $15 per share. The actions are kept by Solo. The buyback is handled using the single transaction method. > Resale of 800 of these shares at $18 per share. Work to be done Present the scriptures above. Unis) Focus FS page Rfrences Publipostage Rvision Affichage Dites-le-nous vv AaBbCcDdEC AaBbCeDdi AaBbCode AaBb CcDdE A E Accentuation Elev Normal Sous-titre 3- Issue - preferred shares at 102 4- Redemption Focus e Rfrences Publipostage Rvision Affichage Dites-le-nous A v AL AaBhCcDdE AaBb CcDdi AaBbCcDdE AaBbceDdEt AaB V vv Accentuation Eleve Normal Sous-titre Titre I 5- Resale of own shares held Focus Question 6 (5 points) On January': XO, Error purchased equipment for $50,000 with a 10-year lifespan (no residual value). The case below is related to this cquipment, as of December 31 X5, before the regularization entries are counted. Case An audit of the company's records reveals that the equipment was mistakenly dcpreciated over a period of 5 years instead of 10 years. The company uses the lincar depreciation method. Review correction entries if necessary on December 31 X5