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Homework answers / question archive / Assume that all other (not shown) Ine items are irelevant (either zero or unchanged versus last year) Complete the Income Statement and answer the following questions 100 20 Trade Receivables Trade Payables 15 ? ? 70% 25 10 ? Property, Plant & Equipment last year Property, Plant & Equipment this year 30 32 10 Global Transport Enterprises Revenues Costs of goods sold Gross profit Gross margin Personnel Expenses Marketing expenses other expenses Selling, Admin, and General Expenses EBITDA Depreciation & Amortisation EBIT EBIT margin Financial income Financial expenses Net financial expenses Pre-tax profit Corporate Taxes paid Net Income 38 ? New equity issued Net debt issued Dividends paid to shareholders 7 4 9 ? 3 2 8 What is EBITDA, EBIT, and net income? What is the corporate tax rate? What is the company's capex? What is the company's working capital? 5 ?

Assume that all other (not shown) Ine items are irelevant (either zero or unchanged versus last year) Complete the Income Statement and answer the following questions 100 20 Trade Receivables Trade Payables 15 ? ? 70% 25 10 ? Property, Plant & Equipment last year Property, Plant & Equipment this year 30 32 10 Global Transport Enterprises Revenues Costs of goods sold Gross profit Gross margin Personnel Expenses Marketing expenses other expenses Selling, Admin, and General Expenses EBITDA Depreciation & Amortisation EBIT EBIT margin Financial income Financial expenses Net financial expenses Pre-tax profit Corporate Taxes paid Net Income 38 ? New equity issued Net debt issued Dividends paid to shareholders 7 4 9 ? 3 2 8 What is EBITDA, EBIT, and net income? What is the corporate tax rate? What is the company's capex? What is the company's working capital? 5 ?

Finance

Assume that all other (not shown) Ine items are irelevant (either zero or unchanged versus last year) Complete the Income Statement and answer the following questions 100 20 Trade Receivables Trade Payables 15 ? ? 70% 25 10 ? Property, Plant & Equipment last year Property, Plant & Equipment this year 30 32 10 Global Transport Enterprises Revenues Costs of goods sold Gross profit Gross margin Personnel Expenses Marketing expenses other expenses Selling, Admin, and General Expenses EBITDA Depreciation & Amortisation EBIT EBIT margin Financial income Financial expenses Net financial expenses Pre-tax profit Corporate Taxes paid Net Income 38 ? New equity issued Net debt issued Dividends paid to shareholders 7 4 9 ? 3 2 8 What is EBITDA, EBIT, and net income? What is the corporate tax rate? What is the company's capex? What is the company's working capital? 5 ?

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Solution

Let us calculate the missing figures in below chronology-

1. Gross Profit = Sales x Gross Profit margin = 100 x 70% = 70

2. Cost of Goods sold = Sales – Gross Profit = 100 -70 = 30

3. Other Expenses = Selling, Admin & General Expenses – Personnel Expenses – Marketing Expenses

= 38 – 25 – 10

= 3

4. EBITDA = Gross Profit – Selling, Admin & General Expenses = 70 – 38 = 32

5. EBIT = EBITDA – Depreciation & Amortization = 32 – 9 = 23

6. EBIT Margin = EBIT / Sales   x 100 = 23 / 100   x 100 = 23%

7. Financial expenses = Net Financial Expenses + Financial Income = 8 + 3 = 11

8. Pre Tax Profit = EBIT – Net Financial Expenses = 23 – 8 = 15

9. Net Income = Pre Tax Profit – Corporate Taxes = 15 – 5 = 10

10. Corporate Tax rate = Corporate Tax expenses /Pre tax Profit x 100 = 5 / 15 x 100 = 33.33%

11. CAPEX = Property Plant & Equipment this year - Property Plant & Equipment last year + Depreciation = 32 – 30 + 9

11

12. Company’s Working Capital=   Trade Receivables – Trade Payables = 20 – 15 = 5