Case S

Case Study -->

Starting from the Balance Sheet at 31st December 2014, consider the accountin

2015 and complete the empty sheets “Debits & Credits”, “T-accounts BS
014, consider the accounting impact of the following transactions that occurred in

& Credits”, “T-accounts BS”, “T-accounts P&L”, “BS 2015” and “P&L 2015”
Debits & Credits
Balance Sheet
Transaction ID Account Asset/Liability Debit Credit
(1) Equity Liability 30,000,000
(1) Cash Asset 30,000,000
(2) Fixed Assets Asset 80,000,000
(2) Cash Asset 80,000,000
(2) Fixed Assets Asset 20,000,000
(3) Cash Asset 10,000,000
(3) Employee Payables Liability 2,500,000
(4) Cash Asset 5,500,000
(5) Cash Asset 508,964,000
(5) Accounts Receivable Asset 15,485,000
(6) Inventory Asset 240,000,000
(6) Cash Asset 230,000,000
(6) Trade Payables Liability 10,000,000
(7) Cash Asset 32,450,000
(8) Inventory Asset 238,000,000
(9) Cash Asset 2,000,000
(10) Cash Asset 35,000,000
(11) Cash Asset 9,500,000
(11) Trade Payables Liability 500,000
(12) Cash 5,600,000
(12) Debt Liability 20,000,000
(12) Cash Asset 20,000,000
(13) Provision Liability 3,000,000
(14) Other Liabilities Liability 5,000,000
(14) Cash Asset 30,000,000
(15) Other Liabilities Liability 19,409,850

540,964,000 458,050,000
82,914,000
 Income Statement
Transaction ID Account Income/Expense Debit Credit
(3) Cost of Personnel Expense 12,500,000
(4) Cost of Services Expense 5,500,000
(2) D&A Expense 20,000,000
(5) Revenues Income 524,449,000
(7) Cost of goods sold Expense 32,450,000
(8) Cost of goods sold Expense 238,000,000
(9) Other Revenue Income 2,000,000
(10) Logistic Expenses Expense 35,000,000
(11) Utility Expenses Expense 10,000,000
(12) Interest Expense Expense 5,600,000
(13) Provision for Expenses Expense 3,000,000
(14) Other operating expenses Expense 35,000,000
(15) Income Taxes Expense 19,409,850

Total Debits 1,312,908,850

Total Credits 1,312,908,850

Difference 0
1 T-Accounts
Bala
Assets

Fixed Assets Accounts Receivable

(0) 150,000,000 (0) 18,000,000
(2) 80,000,000 20,000,000 (2) (5) 15,485,000
230,000,000 20,000,000 33,485,000 0
Total Fixed Assets 210,000,000 Accounts Receivable 33,485,000

Inventory Cash
(0) 32,000,000 238,000,000 (8) (0) 65,000,000 80,000,000
(6) 240,000,000 (1) 30,000,000 10,000,000
272,000,000 238,000,000 (5) 508,964,000 5,500,000
Inventory 34,000,000 (9) 2,000,000 230,000,000
32,450,000
35,000,000
9,500,000
5,600,000
20,000,000
30,000,000

605,964,000.0 458,050,000
Cash 147,914,000

Total Assets 425,399,000

 Balance Sheet

Employee Payables Debt

0 (0) (12) 20,000,000
2,500,000 (3)
0.0 2,500,000 20,000,000.0
Employee Payables 2,500,000 Debt

Trade Payables Other Liabilities

(2) 20,000,000 (0)
(3) 10,000,000 (6)
(4) 500,000 (11)
(6) 0 30,500,000 0.0
(7) Trade Payables 30,500,000 Other Liabilities
(10)
(11)
(12) Equity
(12) Provision
(14) 0 (0)
3,000,000 (13)
0 3,000,000 0.0
Provision 3,000,000 Equity
 Liabilities & Equity

Debt
140,000,000 (0)

140,000,000
120,000,000

Other Liabilities
15,000,000 (0)
5,000,000 (14)
19,409,850 (15)
39,409,850
39,409,850

Equity
90,000,000 (0)
30,000,000 (1)
109,989,150
229,989,150
229,989,150

Total Liabilities 425,399,000

T-Accounts
Income Stateme
Expenses

Cost of Goods Sold Utility Expenses

(7) 32,450,000 (11) 10,000,000
(8) 238,000,000
270,450,000 0 10,000,000 0
Cost of goods sold 270,450,000 Utility Expenses 10,000,000

Cost of Personnel Logistic Expenses

(3) 12,500,000 (10) 35,000,000

12,500,000 0 35,000,000 0
Cost of Personnel 12,500,000 Logistic Expenses 35,000,000

Cost of Services Provision for Expenses

(4) 5,500,000 (13) 3,000,000
5,500,000 0 3,000,000 0
Cost of Services 5,500,000 Provisions 3,000,000

Interest Expense D&A

(12) 5,600,000 (2) 5,000,000
5,600,000 0 (2) 15,000,000
Interest Expenses 5,600,000 20,000,000
D&A 20,000,000
Income Statement
Income

Other Opex Revenue

(14) 35,000,000 524,449,000 (5)

35,000,000 0 0 524,449,000
Other opex 35,000,000 Total Fixed Assets 524,449,000

Income Taxes Other Revenue

(15) 19,409,850 2,000,000 (9)

19,409,850 0 0 2,000,000
Total Fixed Assets 19,409,850 Total Fixed Assets 2,000,000
1
Historical Data -->
BS 2014

Dec 31 Dec 31 Dec 31 Dec 31

Assets 2013 2014 Liabilities 2013 2014
Cash 43,000,000 65,000,000 Trade Payables 27,500,000 20,000,000
Raw Materials 48,000,000 32,000,000 Employee Payables 5,000,000 0
Accounts Receivable 31,000,000 18,000,000 Other Liabilities 26,170,000 15,000,000

Debt 140,000,000 140,000,000

Liabilities 198,670,000 175,000,000
Fixed Assets 166,670,000 150,000,000
Provision 0 0
Equity 90,000,000 90,000,000

Total Assets 288,670,000 265,000,000 Total Liabilities & Equity 288,670,000 265,000,000
P&L

in 000's FY13 FY14

Revenue 363,881 455,746
Other Revenue 2,000 2,000
Total Revenue 365,881 457,746
Cost of goods sold -267,080 -297,495
Gross Profit 98,801 160,251
Cost of Personnel -12,375 -12,375
Cost of Services -5,929 -6,050
Logistic Expenses -2,707 -3,570
Utility Expenses -11,875 -19,000
Other operating expenses -32,760 -42,000
EBITDA 33,155 77,256
D&A -16,500 -15,000
EBIT 16,655 62,256
Interest Expense -6,720 -5,600
Provisions 0 0
Earnings before Taxes 9,935 56,656
Taxes (15% of EBT) -2,542 -8,498
Net Income 7,393 48,158
2015 Data -->
BS 2015

As of 31st of December 2015

Assets Liabilities
Cash 147,914,000 Trade Payables 30,500,000
Inventory 34,000,000 Employee Payables 2,500,000
Accounts Receivable 33,485,000 Other Liabilities 39,409,850

Provision 3,000,000
Debt 120,000,000
Fixed Assets 210,000,000 Liabilities 195,409,850

Equity 229,989,150

Total Assets 425,399,000 Total Liabilities & Equity 425,399,000

P&L

in 000's FY15
Revenue 524,449
Other Revenue 2,000
Total Revenue 526,449
Cost of goods sold -270,450
Gross Profit 255,999
Cost of Personnel -12,500
Cost of Services -5,500
Logistic Expenses -35,000
Utility Expenses -10,000
Other operating expenses -35,000
EBITDA 157,999
D&A -20,000
EBIT 137,999
Interest Expense -5,600
Provisions -3,000
Earnings before Taxes 129,399
Taxes (15% of EBT) -19,410
Net Income 109,989