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Accounting Relations: supply missing amounts in reformulated

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Answer: (a) find all missing numbers among which M = 690; (b) operating accruals = 266; (c) 234; (d) $865.

E7.5 Using Accounting Relations
Below are financial statements that have been reformulated. Some items are missing; they are indicated by capital letters.

Income Statement
Six Months to June 30, 2006
Revenues A
Operating expenses
Cost of Sales 2453
Research and development expenses 507
Selling, administrative, and general expenses 2423
Other operating expenses, including taxes 2929 B
Operating income after tax 850
Net financial expenses after tax
Interest expense 153
Interest income C 59
Comprehensive income 791

Balance Sheet
30-Jun-06
June 1, 2006 December 1, 2005 June 1, 2006 December 5, 2008
Operating assets 28,631 30,024 Operating liabilities G 8,747
Financial assets D 4,238 Financial liabilities 7,424 6,971
Common equity 18,470 H
33,088 E 33,088 F

Cash Flow Statement
Six Months Ending June 30, 2006

Cash flow from operations 584
Cash investment I
Free cash flow J
Net dividends (dividends and share repurchases - share issues) K
Payment to net debt holders L
Total financing flows M

a. Supply the missing numbers using the accounting relations.
a) find all missing numbers among which M = 690

b. What were the total new operating accruals in the first half of 2006?
(b) operating accruals = 266
c. How much new net debt was issued during this period?
(c) 234

d. What generated the net dividend in the period?
(d) $865.

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Answer: (a) find all missing numbers among which M = 690; (b) operating accruals = 266; (c) 234; (d) $865.

E7.5 Using Accounting Relations
Below are financial statements that have been reformulated. Some items are missing; they are indicated by capital letters.

Income Statement
Six Months to June 30, 2006
Revenues A
Operating expenses
Cost of Sales 2453
Research and development expenses 507
Selling, administrative, and general expenses 2423
Other operating expenses, including taxes 2929 B
Operating income after tax 850
Net financial expenses after tax
Interest expense 153
Interest income C 59
Comprehensive income 791
...

Solution Summary

This solution is comprised of a detailed explanation to supply the missing amounts in reformulated financial statements.

$2.19