In this task, the operation of the craft beer brewery Ipana Oy is examined from the accountingpoint of view. Ipana Oy is a brewing company that was founded in 2011 and focuses on specialtybeers. The company employs 35 people and focuses on the Finnish specialty beer market. Thecompany sells beer mainly to restaurants and wholesalers, and is currently focusing on increasingdirect sales to customers. The company owns its production facility in Kerava, in connection withwhich the company has considerable storage facilities. In addition, the company rents a smalloffice space in Hakaniemi, Helsinki, at a fairly moderate price (€ 3,200/month). The companyproduces the successful "Ipana IPA" beer, the selling price of which varies depending on the saleschannel, between €2.03/1 and € 3.12/1. The company prefers domestic raw materials, butmost of the hops come from international suppliers. Raw material costs have remained at thesame level in recent years, around € 0.82/1. Although demand has grown over the years as aresult of successful sales and marketing, the company's management is concerned that thecompany's turnover is dependent on a single product.Let's examine the financial period 1 January 2020 - 31 December 2020. At the beginning of theaccounting period, Ipana oy has 200,000 liters of raw material in stock. It can be assumed that 1liter of raw material can be used to produce 1 liter of Ipana IPA. In the finished productwarehouse, on the other hand, 150,000 liters of Ipana IPA are waiting for sale. The openingbalance sheet for the fiscal year (January 1, 2020) looks like this:Assets (€)Permanent equivalents-Fixed assetVariable assets- Raw material warehouse- Ready-made warehouse-Trade receivables- Cash in hand and cashequivalentsLiabilities (€)Equity-Share capital- Accrued earnings- Profit for the periodLiabilities- Long-term loans- Maturing loans-Trade payables15000000164000123000240000113000965800000510000080000082000 During the accounting period, Ipana oy buys 10,000,000 liters of raw material at a price of €0.82/1. During the accounting period, the company produces a total of 10000000 liters of IpanaIPA, and it manages to sell 10000000 liters of Ipana IPA at an average selling price of €2.4/liter.The other costs of the business are € 1,100,000 in total, of which the company's personnel costsare € 4,400,000 and marketing costs are € 2,200,000. At the end of the financial year, thecompany has accounts receivable for €225,600 and accounts payable for € 80,360. Thecompany pays the due loans at the end of the financial year, and at the same time takes out anew loan for a total of €650,000. There is a total of € 600,000 in loans due in the next fiscalyear. The financiers charge an average 4% interest on the loan capital. The interest rate alsocorresponds to the expected return on debt, while the expected return on equity is 12%.Depreciation for the financial year is € 750,000 and the company invests € 1,200,000 in newproduction equipment during the financial year. During the financial year, Ipana oy paysdividends of € 2,341,080 to its owners. The share capital does not change during the financialyear. The prices do not include value added tax, corporate tax is 20%.1. What is the company's current assets in the opening balance sheet?2. What are the company's financial assets in the opening balance sheet?3. What is the company's working capital in the opening balance sheet?4. Calculate the turnover for the financial year.5. Calculate the gross profit for the financial year.6. Calculate the EBITDA for the financial year7. Calculate the operating profit (EBIT) for the financial period.8. Calculate the profit before tax (EBT) for the financial year.9. Calculate the net profit for the financial year.

Turnover = Selling price per unit * Units sold Working capital = Current assets - Current…

1. What is the company's current assets in the opening balance sheet? 2. What are the company's financial assets in the opening balance sheet? 3. What is the company's working capital in the opening balance sheet? 4. Calculate the turnover for the financial year. 5. Calculate the gross profit for the financial year. 6. Calculate the EBITDA for the financial year 7. Calculate the operating profit (EBIT) for the financial period. 8. Calculate the profit before tax (EBT) for the financial year. 9. Calculate the net profit for the financial year.

1. What is the company's current assets in the opening balance sheet? 2. What are the company's financial assets in the opening balance sheet? 3. What is the company's working capital in the opening balance sheet? 4. Calculate the turnover for the financial year. 5. Calculate the gross profit for the financial year. 6. Calculate the EBITDA for the financial year 7. Calculate the operating profit (EBIT) for the financial period. 8. Calculate the profit before tax (EBT) for the financial year. 9. Calculate the net profit for the financial year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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