Question
You are asked by a Swedish company that assembles computers to draw up a by-nature and by-function income statement for year n.You are provided with
You are asked by a Swedish company that assembles computers to draw up a by-nature and by-function income statement for year n.You are provided with the following information: Retail price of a PC is $1500 Cost of various components:
Parts Price Operating Inventory Closing Inventory
Case 50 5 13
Motherboard 200 8 2
Processor 300 4 11
Memory 100 6 4
Graphic Card 50 1 13
Hard disk 150 5 10
Screen 200 3 3
DVD combo 50 7 19
Over the financial period, the company paid out $60000 for salaries and social security contributions of 50% of that amount.The company produced 240 PCs.Closing stock of finished products was 27 units and opening stock 14 units. At the end of the period, the manager sells the premises that he had bought for $200000 three years ago (which was depreciated over 40 years) for $230000, it now occupies old premises that are fully depreciated and pays off a $12000 loan at 5% interest.What impact do these transactions have on EBITDA, operating profit and net income.Tax is levied at 35% rate.
Over the course of the financial period, by how much did the company/the lender/the company manager (who owns 50% of the shares) get richer/poorer?
Can you please explain the steps involved? I am not sure how to even identify the number of units sold let alone the rest of this. Thank you
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