Homework

34. Profit and loss account

The accruals principle = principiul contabilitatii de angajamente
Reporting period = perioada de raportare
Profit or loss = profit sau pierdere
Cost of goods sold (COGS) = costul bunurilor vandute
Selling and general expenses = Vanzarea si costurile generale
Depreciation = Deprecierea
Wear out = Se useaza
Operating profit = Profit operational
Interest payable = dobanda de plata
The profit on ordinary activities before tax or pre tax profit = Profitul din activitati obisnuite
inainte de taxare sau profitul brut (?)
exceptional items = elemente/situatii exceptionale
Corporation tax= Impozit pe profit
Earnings = venituri, castiguri
Dividends = dividente
Dividends per share = Dividente pe actiuni (detinute)
Omit, pass or skip the dividends = Omit, treci mai departe sau sariti peste dividente
Retained earnings or reserves = venituri(profit) reinvestite sau reserve
earnings per share = castiguri pe actiune

14.1 Exercises :
Accruals principle
Interest payable
Reporting period
Retained earnings
Exceptional items
Operating profit
Selling and general expenses
P&L account
1. Reporting period
2. Profit
3. Retained earnings
4. Exceptional items
14.2
1. True
2. False
3. False
4. False
5. False

35. Balance sheet 1

Assets = active
Balance sheet= bilant contabil
Current assets= active circulante
Cash = numerar
Securities = titluri de valoare
stocks of raw materials= stocuri de materii prime
unfinished goods and finished goods = bunuri finite si nefinite
Fixed or tangible assets = Active fixe sau corporale
Intangible assets = Active necorporale
Obsolete = invechit
Written down = notat
Written off = anulata
Book value = valoarea contabila
Market value = valoarea de piata
15.1
ASSETS
Cash 11000
6000

Total current asstes

94000
3500
6000

Total fixed assets (book value) 31000 134000

9000

Total intangible assets 22500 15000 177000

TOTAL ASSETS

15.2

1 False
2 False
3 False
4 True

36. Balance sheet 2

Liabilities = Datorii
Shareholders= Fondurile actionarilor
share capital = capital social
36.1

6000
10500
3500
5000
total current liabilities 25000 16500
Bank loan repayable in 3 years 20000

Total long term liabilities 20000 50000

30000
100000
Shareholders' funds 2000 110500
TOTAL LIABILITIES PLUS
SHAREHOLDS' FUNDS 132000 177000 177000

36.2

1 FALSE
2 FALSE
3 TRUE
4 FALSE
5 TRUE
6 FALSE

37. Balance sheet 3

Cashflow statement = situatia fluxurilor de trezorerie

Cash inflows = intrari de numerar
Cash outflows = Iesiri de numerar
Net cashflows from operations = fluxuri de numerar net din activitatea de exploatare
Net cashflows from investment = Fluxurile de numerar nete din investiții
Net cash flows from financing = Fluxuri nete de numerar din finantari

37.1
Operating activities Net cashflows from operations 550.000
Investment activities Purchase of secutities 50.000
money received from sales of shares in
other companies 30.000
 loans made to borrowers 35.000
loans repaid and loan interest paid by
borrowers 5.000

Purchase of land, buildings and equipment 490.000

sales of land, buildings and equipment 250.000
Net cashflows from investments
money received through short term
Financing activities borrowing 220.000
money repaid in short term borrowing 180.000
money received through issuing new shares
in the company 800.000
money received through issuing new bonds
in the company 660.000
dividends paid to shareholders 53.000
Net chashflows from financing activities 1.447.000
NET CASH POSITION AT YEAR END

39. Shareholder value

Shareholder value= valoarea in actiuni ale actionarului

Yield = eficienta/randament
Price/earning ration = Raport pret/castig
Maximizing shareholder value = Maximizarea valorii actionarilor

39.1
Paragon Quasar
Earnings € 6.000.000 € 6.000.000
Retained earnings € 3.500.000 € 5.000.000
Distributed earnings € 2.500.000 € 1.000.000
Number of share price 10.000.000 5.000.000
Current share price € 5,00 € 6,00
Dividend per share € 0,25 € 0,20
Yield 1,25% 3,33%
EPS € 0,60 € 1,20
PE ration 8,33% 30,00%
39.2
1 Paragon
2 Paragon
3 Quasar
4 Paragon
39.3

1. Maximize the return of investments

2. Distributed earnings
3. Decision
4. Balance sheet or cashflow statement
5. Strategic decision