CFVG

MBA Hanoi and Ho Chi Minh City

Financial Accounting
Eric Maton
January 7, 2019
Multiple-choice questions, calculator allowed, closed book
(exception: formulas and acronyms given with the examination)
3 hours

No negative point
Only one good answer per question
Between parentheses means “minus”
You have to show your calculation beside the answer (points are attributed to answers
with calculation visible)

1 – SOFT Enterprises sold products to customers on 31 December 2018 for a total price of
$90,000 paid one third cash and two thirds with a one-month credit term. The cost of the
products was $60,000. The most likely net change in SOFT’s operating working capital on 31
December 2018 related to this transaction is
$(90,000)
$(60,000)
$(30,000)
$0 = Increase in accounts receivable (2/3 x 90,000) – Decrease in finished goods
inventory (30,000)
$30,000
$60,000
$90,000

2 – In function of the data below what is the most likely working capital?

Long-term financial assets €500,000

Property, Plant and Equipment at gross value €3,000,000
Intangible assets at net value €800,000
Accumulated depreciation €350,000
Accumulated amortization €200,000
Retained earnings (including profit of the year) €460,000
Capital stock or share capital €680,000
Additional paid-in capital or share premium €2,500,000
Long-term financial liabilities €600,000
Short-term financial liabilities €275,000

€(935,000)
€(735,000)
€(410,000)
€(260,000)
€(35,000)
 €140,000
€290,000
€565,000
€790,000
€1,065,000
None of these

3 – En function des données ci-dessous quel est le chiffre d’affaires le plus probable

Charges locatives 125 000 €

Masse salariale 900 000 €
Dotations aux amortissements 160 000 €
Achats de composants 730 000 €
Stock initial de composants 80 000 €
Stock final de composants 150 000 €
Achats non stockés 90 000 €
Charges financières 130 000 €
Produits financiers 40 000 €
Stock initial de produits finis 235 000 €
Stock final de produits finis 162 000 €
Taux d’impôt sur les sociétés (IS) 25%
Résultat net 270 000 €

€2,120,500
€2,278,000
€2,300,500
€2,312,000
€2,452,000
€2,458,000
€2,598,000
None of these

4 – In function of the data below what is the most likely ROCE before (income) tax (rounded
if necessary)?

Operating expenses in % of sales 92%

P,P&E at net value in % of sales 28%
Intangible assets at net value in % of sales 15%
Current operating assets in % of sales 25%
Current operating liabilities in % of sales 18%

4.00%
6.88%
8.00%
9.30%
 16.00% = (1 – 92%) / (28% + 15% + 25% - 18%) = 8% / 50%
18.60%
91.00%
184.00%

5 – What is the most likely operating working capital in function of the data below?

Advance payments to suppliers €375,000

Unearned or deferred revenue €222,000
Raw material inventory €120,000
Finished goods inventory €245,000
Short-term financial liabilities €80,000
Accounts payable €64,000
Accounts receivable €280,000
Current tax liability €164,000
Social benefits liabilities €122,500
Cash and cash equivalents €347,200

€(891,500)
€(794,700)
€(714,700)
€(447,500)
€(302,500)
€(72,500)
€72,500
€302,500
€447,500
€714,700
€794,700
€891,500
None of these

6 – In function of the data below what is the most likely collection from customers or
receipts?

Opening Accounts receivable €120,000

Opening Unearned or deferred revenue €235,000
Sales revenue €860,000
Ending Accounts receivable €180,000
Ending Unearned or deferred revenue €322,200
Opening Prepaid expenses €125,000
Ending Prepaid expenses € 56,300

€712,800
€818,500
€832,800
 €860,000
€887,200 = Sales revenue – Increase in accounts receivable (operating asset) + Increase
in unearned or deferred revenue (operating liability) = 860,000 – 60,000 + 87,200
€955,800
€1,007,200
None of these

7 – What is the most likely expected operating cash flow in 2019 calculated from NOPAT
(Net Operating Profit After (income) Tax) in function of the data below?

Sales revenue in 2018 €1,250,000

Total variable operating cost in 2018 €700,000
Total fixed operating cost in 2018 €280,000
Income tax rate 20%
Depreciation and amortization expense in 2018 €210,000
Opening operating working capital in 2019 €230,000
Ending operating working capital in 2019 €490,000

Expected year-on-year (YOY) change (from 2018 to 2019)

Increase in sales volume +10%

Increase in depreciation and amortization expense +5%

€(228,900)
€44,100
€65,000
€212,200
€220,500
€268,100
€275,000
€285,500
€291,100
€353,625
€732,100
None of these

8 – In function of the data below what is the breakeven point in value?

Sales revenue $100,000

Variable cost in % of sales revenue 60%
Fixed cost in % of sales revenue 25%

$15,000
$37,500
$38,333
$41,667
$62,500
 $117,647
$153,846

9 – What is the amount of the operating cash flow in function of the data below?

Net profit $ 1,000,000

Depreciation and amortization expense $ 250,000
Increase in deferred or unearned revenue $ 160,000
Decrease in prepaid expenses $ 285,000
Decrease in accounts payable $ 122,000
Increase in accounts receivable $ 433,000

$(2,250,000)
$(1,360,000)
$(1,140,000)
$(640,000)
$(250,000)
$250,000
$640,000
$1,140,000
$1,360,000
$2,250,000

10 – A company has a financial liability at these terms:

Annual interest rate 2%
Amount borrowed €1,000,000
Date of borrowing April 1st, 2016
Duration 10 years
Annuity paid at the anniversary date with same amount repaid (constant repayment)
each year and interest paid annually
What is the amount in the current liability for this financial liability in the balance sheet as of
December 31, 2018?

€4,000
€12,000
€13,500
€16,000
€100,000
€104,000
€112,000
€113,500
€116,000
€700,000
€800,000
None of these

11 – Follow the information for a tangible asset:

Cost of purchase €200,000

Method of depreciation SOFTY method
 Lifetime (in years) 6

What is the most likely net book value or net carrying value after 3 years (rounded to the
nearest euro)?
€57,143
€95,238
€104,762
€142,857
None of these

12 – From the data below what is the most likely free cash flow in 2018 with operating cash
flow calculated from net profit (and not NOPAT)?

Balance sheets as of December 31

Assets Equity and liabilities

2018 2017 2018 2017
Property, Plant and
100 80 Equity
Equipment
Capital stock and additional paid-in
Intangible assets 60 30 140 100
capital
Long-lived financial assets 40 25 Retained earnings 65 50
Net profit 25 20
Current operating assets 86 65 Financial liabilities 60 40
Cash and cash equivalents 35 22 Current operating liabilities 31 12
Total 321 222 Total 321 222

P&L or income statement

2018
Sales revenue 220
Operating expenses -182
including depreciation and amortization expense -30
Operating profit 38
Financial profit -5
Sale price of P,P&E and intangible assets sold 20
Net book value of P,P&E and intangible assets sold -16
Profit before tax 37
Income tax -12
Net profit 25

(57)
(42)
(27)
(13)
(7)
7
13
27
42
57