BEC case 1 group 31
Questions
1a. Calculate the increase of fixed assets on 1 July 2017.
1.680.000/140*40 = 480.000
1b. Calculate the increase of inventory on 1 July 2017.
750.000/150*50 = 250.000
Total = 480.000 + 250.000 = 730.000
2a. Calculate the debt ratio just after the expansion.
3.400.000*0.6 = 2.040.000
Total debt is 2.040.000 + 480.000 + 250.000 = 2.770.000
Total assets is 3400,000 + 480,000 + 250,000 = 4130,000
Debt ratio = 2.770.,000 = 0.67
2b. Motivate whether the solvency has improved or worsened because of the expansion.
The debt ratio increased from 0.6 to 0.67, so more assets are financed by debt. Therefore, the solvency (total assets/total
3. Calculate the inventory turnover of the new assortment (hint: look up formula).
Costs of goods sold/average inventory = inventory turnover
2.400.000 * 0.6 = 1.440.000
1.440.000/160.000 = 9
4. Calculate the amount of debtors (= accounts receivable) with respect to the new assortment on 1 January 2018.
1200.000/6/30 * 36 days = 240.000
5. Calculate the costs that have to be paid in the second half of 2017 because of the expansion.
Pay-back loan (48.000) + interest payment (0.06 * 480.000 * (6/12) = 14.400) + pay-back creditors (250.000) + other costs
6. Is Selga able to come up to its payment duties in the second half of 2017?
Excepted receipts: 1.200.000* (144/180) = 960.000
So, yes, Selga is able to come up to its payment duties in the second half of 2017. There is a surplus of 960.000 - 952.400 =
7. Calculate the income before taxes with respect to the new assortment in the second half of 2017.
Gross profit: 2.400.000 x 0.40 = 960.000
960. = 480.000 is the gross profit of 0.5 year.
480.000 - 100.000 - (0.06*480.000*(6/12)) - (0.015 * 480.000) = 358,400
Problem 1.2
1. Calculate the value of buildings at 31 December 2017.
Value of buildings at 31 December 2016: 14.500.000
+ building revaluation 1.500.000
+ investment in buildings 5.000.000
- investment activities in buildings 1.900.000
- depreciation buildings 850.000
= 18.250.000
2. Calculate the amount that has been invested in furniture in 2017.
Value of furniture at 31 December 2016: 8.700.000
- loss sale furniture 100.000
- depreciation furniture 1.450.000
- proceeds of the furniture that is sold 200.000
+ total investment ?
= value of furniture at 31 December 2017: 7.750.000
8.700.000 - 100.000 - 1.450.000 - 200.000 = 6.950.000
Total investment = 7.750.000 - 6.950.000 = 800.000
3. Calculate the value of the mortgage at 31 December 2017.
Questions
1a. Calculate the increase of fixed assets on 1 July 2017.
1.680.000/140*40 = 480.000
1b. Calculate the increase of inventory on 1 July 2017.
750.000/150*50 = 250.000
Total = 480.000 + 250.000 = 730.000
2a. Calculate the debt ratio just after the expansion.
3.400.000*0.6 = 2.040.000
Total debt is 2.040.000 + 480.000 + 250.000 = 2.770.000
Total assets is 3400,000 + 480,000 + 250,000 = 4130,000
Debt ratio = 2.770.,000 = 0.67
2b. Motivate whether the solvency has improved or worsened because of the expansion.
The debt ratio increased from 0.6 to 0.67, so more assets are financed by debt. Therefore, the solvency (total assets/total
3. Calculate the inventory turnover of the new assortment (hint: look up formula).
Costs of goods sold/average inventory = inventory turnover
2.400.000 * 0.6 = 1.440.000
1.440.000/160.000 = 9
4. Calculate the amount of debtors (= accounts receivable) with respect to the new assortment on 1 January 2018.
1200.000/6/30 * 36 days = 240.000
5. Calculate the costs that have to be paid in the second half of 2017 because of the expansion.
Pay-back loan (48.000) + interest payment (0.06 * 480.000 * (6/12) = 14.400) + pay-back creditors (250.000) + other costs
6. Is Selga able to come up to its payment duties in the second half of 2017?
Excepted receipts: 1.200.000* (144/180) = 960.000
So, yes, Selga is able to come up to its payment duties in the second half of 2017. There is a surplus of 960.000 - 952.400 =
7. Calculate the income before taxes with respect to the new assortment in the second half of 2017.
Gross profit: 2.400.000 x 0.40 = 960.000
960. = 480.000 is the gross profit of 0.5 year.
480.000 - 100.000 - (0.06*480.000*(6/12)) - (0.015 * 480.000) = 358,400
Problem 1.2
1. Calculate the value of buildings at 31 December 2017.
Value of buildings at 31 December 2016: 14.500.000
+ building revaluation 1.500.000
+ investment in buildings 5.000.000
- investment activities in buildings 1.900.000
- depreciation buildings 850.000
= 18.250.000
2. Calculate the amount that has been invested in furniture in 2017.
Value of furniture at 31 December 2016: 8.700.000
- loss sale furniture 100.000
- depreciation furniture 1.450.000
- proceeds of the furniture that is sold 200.000
+ total investment ?
= value of furniture at 31 December 2017: 7.750.000
8.700.000 - 100.000 - 1.450.000 - 200.000 = 6.950.000
Total investment = 7.750.000 - 6.950.000 = 800.000
3. Calculate the value of the mortgage at 31 December 2017.
