Below is Rodrigues Ltd's income statement and two balance sheets: Rodrigues Ltd Income Statement for year ending 30th June 2021 Sales COGS Operating expense Depreciation Interest expense Income before tax Tax at 30% Net income $m 600 240 100 40 10 210 63 147 Assets Current assets PPE Rodrigues Ltd Balance Sheet as at 30th June Cost Accumul. depr. Carrying amount Total assets Liabilities Current liabilities Non-current liabilities Owners' equity Retained earnings Contributed equity Total Land OE 2021 $m 98 800 140 660 758 60 130 80 488 758 2020 $m 73 920 100 820 893 50 120 100 623 893

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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Below is Rodrigues Ltd's income statement and two balance sheets:
Rodrigues Ltd
Income Statement for
year ending 30th June 2021
Sales
COGS
Operating expense
Depreciation
Interest expense
Income before tax
Tax at 30%
Net income
$m
600
240
100
40
10
210
63
147
Assets
Current assets
PPE
Cost
Accumul. depr.
Carrying amount
Total assets
Rodrigues Ltd
Balance Sheet
as at 30th June
Liabilities
Current liabilities
Non-current liabilities
Owners' equity
Retained earnings
Contributed equity
Total L and OE
2021
$m
98
800
140
660
758
60
130
80
488
758
2020
$m
73
920
100
820
893
50
120
100
623
893
Which of the following statements about the financial year from 30 June 2020 to 30 June 2021 is
NOT correct?
O a. The increase in net working capital (ANWC) was $15m.
O b. Net capital expenditure was negative because in net terms, more property, plant and equipment (PPE) was bought rather than sold.
O c.
The increase in net working capital was positive largely because in net terms, more inventory was bought rather than sold.
O d. Firm free cash flow (FFCF or Cash flow from assets CFFA) was $302m.
e.
Net capital expenditure (CapEx) was $-120m.
Transcribed Image Text:Below is Rodrigues Ltd's income statement and two balance sheets: Rodrigues Ltd Income Statement for year ending 30th June 2021 Sales COGS Operating expense Depreciation Interest expense Income before tax Tax at 30% Net income $m 600 240 100 40 10 210 63 147 Assets Current assets PPE Cost Accumul. depr. Carrying amount Total assets Rodrigues Ltd Balance Sheet as at 30th June Liabilities Current liabilities Non-current liabilities Owners' equity Retained earnings Contributed equity Total L and OE 2021 $m 98 800 140 660 758 60 130 80 488 758 2020 $m 73 920 100 820 893 50 120 100 623 893 Which of the following statements about the financial year from 30 June 2020 to 30 June 2021 is NOT correct? O a. The increase in net working capital (ANWC) was $15m. O b. Net capital expenditure was negative because in net terms, more property, plant and equipment (PPE) was bought rather than sold. O c. The increase in net working capital was positive largely because in net terms, more inventory was bought rather than sold. O d. Firm free cash flow (FFCF or Cash flow from assets CFFA) was $302m. e. Net capital expenditure (CapEx) was $-120m.
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