Quiz 3

Question 1 - Opening debtors =10,000; Closing debtors =25,000; Sales =100,000; 60% sales on credit; Bad debts = 3000; Purchased goods for cash =20,000. Find collections from customers

Answer - 42,000

Question 2 - Opening Capital =100,000; Closing capital = 150,000; Stock dividend: 10% of opening capital; Cash dividend paid = 5000; purchased plant = 20,000 by issuing shares. No conversion of debt, no further purchasing of stocks / Investment. Find CFF.

Answer - 15000

Question 3 - Profit =10,000; Depreciation =10,000; Amortization =10,000; Interest received =10,000; Interest due but not paid = 10,000; Dividend received =10,000; Stock Dividend distributed = 10,000; Increase in creditors =10,000; Decrease in debtors =10,000. No bad debts and discounts during the year. Find CFO

Answer - 30,000

Question 4 - Profit before depreciation and interest and tax (PBIT) = 10,000; Depreciation =4000; interest paid = 4000; credit sales = 3000; credit purchases of goods = 5000; Credit expenses = 3000. Assume: zero tax. Find CFO.

Answer - 15,000

Question 5 - Purchases = 20,000; 100% for cash; 50% of the goods sold for 10,000; 60% of sales was on credit. Other operating expense = 50% of sales; Entire expenses paid during the year. Depreciation =2000; interest paid = 1000. Find CFO

Answer - Negative 21,000

Question 6 - Asset information of A ltd: Opening Plant =10,000; Closing plant = 17000; Depreciation = 3000; Impairment = 5000; Purchase of shares of Z ltd for cash = 5000; Received bonus shares from XYZ = 5000. No credit purchases of plant. Find CFI.

Answer - Negative 20,000

Question 7 - Opening stock = 5000; Closing stock = 8000; Purchased goods on credit = 10,000; Closing creditors = 3000. Find COGS

Answer - 7000