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AFC 2018 MULTIPLE CHOICE TEST (individual assignment) Call 17th Jan. 2019 1. Company A produces and sells wood panels. In the Table below, y ou can find 2018 data of Company A. Please, calculate the OPERATING PROFIT of Company A in 2018. OPERATING PROFIT: A. 40 mln€ B. 70 mln€ C. 39.2 mln€ D. 65 mln€ Solution SOLUTION [mln€] Revenues 200 + Other Operating Income 10 Total Revenues 210 + Changes in Inventories of Finished Goods [€]* 5 - Raw Materials used 100 - Employee Benefit Expenses [€] 30 - Depreciation & Amortization [€] 25 - Other Operatng Expenses [€] 20 OPERATING PROFIT 40 *As of the given data: quantity produced in 2018 = quantity sold in 2018. Changes in inventory is thus due to a change in the unitary value of the stock of finished goods. COMPANY A - DATA (2018) Number of Panels Sold [#] 8,000,000 Of Whom paid by customers in 2019 [#] 800,000 Price [€/panel] 25.00 Trade Receivables (final) [€] 20,000,000 Income generated from the rent of proprietary buildings [€] 10,000,000 Changes in Inventories of Finished Goods and WIP (f-i) [€] 5,000,000 Direct Raw Materials [€/panel] 12.50 Trade Payables (final) [€] 50,000,000 Depreciation & Amortization [€] 25,000,000 Cost of Personnel [€] 30,000,000 Other Operating Expenses [€] 20,000,000 Financial Income [€] 100,000 Financial Interests [€] 900,000 2. T h e R e s i d u a l I n c o m e ( R I ) : A. Is a ratio indicator and, as ROI, it tends to favour growth B. Is an absolute indicator and, as ROI, it tends to favour growth C. Is an absolute indicator: differently from ROI, it tends to favour growth D. Is an absolute indicator, while ROI is a ratio indicator: they both equally tend to favour growth 3. In 2018 Company Peak bought 60% of Company Snow. The whole value of the item “Equity investments” in Peak’s balance sheet…