Mini-scenario 1 The questions all relate to transactions undertaken by Struli GmbH, a German business. Required: 1. The CFO uses the company's overdraft to pay a supplier €20,000. What is the impact on the net assets of the company in monetary terms? The Board of Directors decides that old inventory costing €18,000 is to be written off as the inventory is no longer sellable (it has gone out of fashion). Identical inventory in the past was sold to customers for €31,000. 2. What is the impact on the net assets of the company in monetary terms? 3. The company repays a €45,000 loan by taking out another loan for €30,000 and raising €15,000 new equity. What is the impact on the net assets of the company in monetary terms? 4. One of the directors has loaned the company €25,000 of her own money. What is the impact on the net assets of the company in monetary terms? A customer has returned unwanted goods and the company has agreed to refund the customer in full. These goods were sold to the customer for €10,000. There is nothing wrong with the goods and they will be offered for sale to future customers. The goods originally cost €7,000. What is the impact on the net assets of the company in monetary terms? 5.
Mini-scenario 1 The questions all relate to transactions undertaken by Struli GmbH, a German business. Required: 1. The CFO uses the company's overdraft to pay a supplier €20,000. What is the impact on the net assets of the company in monetary terms? The Board of Directors decides that old inventory costing €18,000 is to be written off as the inventory is no longer sellable (it has gone out of fashion). Identical inventory in the past was sold to customers for €31,000. 2. What is the impact on the net assets of the company in monetary terms? 3. The company repays a €45,000 loan by taking out another loan for €30,000 and raising €15,000 new equity. What is the impact on the net assets of the company in monetary terms? 4. One of the directors has loaned the company €25,000 of her own money. What is the impact on the net assets of the company in monetary terms? A customer has returned unwanted goods and the company has agreed to refund the customer in full. These goods were sold to the customer for €10,000. There is nothing wrong with the goods and they will be offered for sale to future customers. The goods originally cost €7,000. What is the impact on the net assets of the company in monetary terms? 5.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Part 4 5
i need in words not handwritten
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education