University study material for Accounting, Finance & Control in the Management Engineering degree programme at Politecnico di Milano. The document covers: ACCOUNTING, FINANCE AND CONTROL WRITTEN TEST CALL 2 _ 10th February 2020 1. Company A produces chocolate and other sweets. You know the following 2019 financial data about Company A: Financial data 2019 [k€] Net Working Capital 7,500 CAPEX 2,500 Gross Profit 27,000 Delta
University study material for Accounting, Finance & Control in the Management Engineering degree programme at Politecnico di Milano. The document covers: ACCOUNTING, FINANCE AND CONTROL WRITTEN TEST CALL 2 _ 10th February 2020 1. Company A produces chocolate and other sweets. You know the following 2019 financial data about Company A: Financial data 2019 [k€] Net Working Capital 7,500 CAPEX 2,500 Gross Profit 27,000 Delta
Import quality: text was extracted directly from the original document.
Representative passages recognised in different parts of the material. The full extracted text remains available to search, while this compact preview makes the page easier to read.
ACCOUNTING, FINANCE AND CONTROL WRITTEN TEST CALL 2 _ 10th February 2020 1. Company A produces chocolate and other sweets. You know the following 2019 financial data about Company A: Financial data 2019 [k€] Net Working Capital 7,500 CAPEX 2,500 Gross Profit 27,000 Delta inventories of raw materials (f-i) 20,000 Purchase of Raw Materials 38,000 Income Taxes 2,300 Net financial expenses 550 Net Profit 10,200 You also know that: The cost of raw materials represents the 30% of Cost of Sales (Cost of Goods Sold); Operating Profit Margin (Return On Sales) = 15%; EBITDA Margin = 20%; Quality of Operating Earnings = 1.3. Considering the available data, which of the following answers is CORRECT? (4 Points) A. D&A = 7.68 mln €; Cash Flow from Operating Activities = 29.97 mln € B. D&A = 4.35 mln €; Cash Flow from Operating Activities = 16.97 mln € C. EBIT = 13.05 mln €; Cash flow from Operating Activities = 7.05 mln € D. EBIT= 33.05 mln €; Cash Flow from Operating Activities = 13.26 mln € Solution Cost of Raw Materials in the production unit = Purchase of raw materials – Delta inventories (f-i) = 38 mln € - 20 mln € = 18 mln € Cost of Sales = 18 mln € / 30% = 60 mln € Revenues = Gross profit + Cost of sales = 27 mln € + 60 mln € = 87 mln € EBIT = Revenues * Operating Profit Margin = 87 mln € * 15% = 13.05 mln € EBITDA = Revenues * EBITDA Margin = 87 mln € * 20% = 17.40 D&A = EBITDA – EBIT = 17.40-13.05 = 4.35 mln € CFFO = EBIT * Quality of Operating Earnings = 13.05 * 1.3 = 16.97 mln € 2. In dealing with intra -company transfer prices, considering a short -term horizon of time, which of the following answers is WRONG: (2 Points) A. By adopting a full actual cost policy, the selling business unit is not motivated to optimize its efficiency B. By adopting a marginal…
First page of the document.
