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AFC 2018 MULTIPLE CHOICE TEST (individual assignment) Call 17th July 2019 1. Company A works in the premium mobility sector: it designs, manufactures and sells worldwide luxury cars, while also managing and selling mobility services. You have access to the following data from the last Annual Report Table 1 Company A 2018 Company A (2018) Data in mln € Other operating income 600 Other operating expenses 900 Cost of Goods Sold 70,000 Change in trade receivables (2018-2017) 90 Change in trade payables (2018-2017) -700 Change in inventories (2018-2017) 600 Selling and General Administrative Expenses 10,000 D&A of other tangible, intangible and investment assets 5,000 Financial expenses 500 Financial incomes 400 Income Taxes 3,000 EBT 10,000 Net Profit 7,000 On the base of the AVAILABLE data, it is TRUE that: ( 4 Points) A. Gross Profit = 24,010 k€; EBIT = 10,100 k€ B. Gross Profit = 20,200 k€; EBIT = 9,900 k€ C. Revenues = 90,400 k€; Gross profit = 20,400 k€ D. Revenues = 94,010; Gross Profit = 25,400 k€ Solution (data in k€) Based on the available data, EBIT and Gross Profit can be recnstructed starting from Net Profit. Financial Position = 400 mln€ - 500 mln € = - 100 mln € EBIT = EBT – Financial position = 10,000 mln€ + 100 mln€ = 10,100 mln€ Gross Profit = EBIT + Selling and General Administrative Expenses + Other operating Expenses – Other Operating Income = 10,100 mln€ + 10,000 mln€ +900 mln €- 600 mln € = 20,400 mln € Revenues = Gross Profit + Cost of sales = 20,400 mln € + 70,000 mln € = 90,400 mln € 2. The sales forecast for the next year for products A, B, C ma nufactured by Company XYZ Ltd are respectively 500 units, 450 units, and 400 units. The C ompany works without inventories and uses a plant with an annual production capacity of 6,975 hours. The time…