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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…