Individual Assignment 3 - Tran Thi Quynh Nhi - 47k22.1

INDIVIDUAL ASSIGNMENT CHAPTER 3 PART 1
Question 1: Based on the balance sheet of Company X at the end of 20x4 and
20x5, answer the
following questions:
1. Fill the missing numbers in the table 1
2. How much does the cash of company X increase in 20x5?
= Cash, ending- Cash, beginning = 180 – 98 =82
3. How much is the retained earnings at the end of 20x5?
= Beginning RE + Net income – Dividend = 987 + 433 – 218 =1202
TABLE 1: FINANCIAL STATEMENT OF COMPANY X

BALANCE SHEET AS 31/12/20X4 AND 31/12/20X5
(in millions VND)
ASSET 20X4 20X5

CURRENT ASSETS
Cash and cash equivalent 98 180
Account receivables 608 678
Inventory 1367 1456
Other current asset 44 56
Total current asset 2117 2370
LONG-LIVED ASSETS
Fixed asset 1678 1897
Accumulated depreciation 950 1090
Fixed asset, net value 728 807
Investment land 45 98
Other investment 205 205
TOTAL ASSET 3095 3480
LIABILIITES
CURRENT LIABILITIES
Account payables 234 148
Wage payables 98 47
Short-term debt 432 590
Other payables 140 191
Total current liabilities 904 976
Long-term debt 422 520
TOTAL LIABILITIES 1326 1496
SHAREHOLDER'S EQUITY
Common stock, par value 421 421
Capital in excess of par-value 361 361
Retain earnings 987 1202
TOTAL SHAREHOLDER'S EQUITY 1769 1984
TOTAL LIABILITIES & SHARE HOLDER'S 3095 3480
EQUITY
Question 2: Fill the missing numbers in the table 2 shown Income Statement of
Company X in 20x4 and 20x5
TABLE 2: INCOME STATEMENT OF COMPANY X in 20X4
(in millions VND)

20X4 20X5
Revenue 3,657 5089
Cost of Goods Sold 2550 3456
Gross profit 1,107 1,633
Selling expense 214 456
Admisnistrative expense 335 423
Depreciation 120 140
EBIT 438 614
Interest expense 228 98
Earnings before taxes 210 516
Tax 97 83
Net income 307 433
Dividend 128 218
Retained earninings 179 215
Question 3 : Based on the table 3 ( The Cash Flow Statement of Company X at

the end of 20x4 and
20x5), answer the following questions:
1. Filling the missing numbers in table 3
2. What is cash flow from operating, investing and financing activities of company X
in 20x5?
- Net cash flow from operating activities: include those cash inflows and
outflows associated with the acquisition and sale of a company’s products and
services. These cash flows are generally the cash effects of transactions that
enter into the determination of net income. Thus, we see items that not all
statement users might think of as “operating” flows – items such as dividends
and interest received, as well as interest paid.
= 433 +140 -70 -89 -12 -86 -51 +51 =316
- Net cash flow from investing activies (include the cash inflow and outflow
associated with the purchase and sale of a company’s investments. Cash
effects from the purchase or sale of a company’s marketable securities or
property, plant and equipment are common examples.
= -219 -53 = -272
- Net cash flow from financing activites (include the cash inflow and
outflow associated with a ccompany ’s two sources out outside capital:
liabilities and shareholder’s equity. Cash proceeds from and cash principal
payment on short and long-term liabilities are reflected in this section of the
statement of cash flows.
= 82 - 316 -(-272) = 38
4. Which methods does the company use to inform the statement of cash flow?
- The company uses the indirect method
5. Can you analyze the cash flow of company X in 20x5? (Hint: Does compnay
make enough cash for its operation and meet all obiligations to paid for creditors
and shareholder)
- Net cash flow from operating activities is 316 million VND => the company
generates enough cash through core business activities to pay operating fees.
- Net cash flow from investing activities was -272 million VND => the
company invested more money than it received from selling investment
accounts or assets during the year
- Net cash flow from financing activities was VND 38 million => the company
raised more cash through debt or equity issuance than it paid out through
dividends or debt repayment.
- In 20x5, the net change in cash flow was 82 million VND => the company
had enough cash to fulfill its obligations to creditors and shareholders.
TABLE 3: STATEMENT OF CASH FLOWS

COMPANY X IN 20X5 (in millions VND)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 433
Depreciaion 140
Increase account receivalbes -70
Increase inventory -89
Increase other assets -12
Decrease account payables -86
Decrease wage payables -51
Increase other payables 51
Net cash flow from operating activities 316
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase fixed assets -219
Purchase market securities -53
Net cash flow from investing activies -272
CASH FLOWS FROM FINACING ACTIVIES
Borrow short-term debt 158
Addition to long-term debt 98
Dividend paid -218
Net cash flow from financing activites 38
Net change in cash flows 82
Cash, beginning 98
Cash, ending 180
Question 4: Discuss with your good friend in the group about above questions

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INDIVIDUAL ASSIGNMENT CHAPTER 3 PART 1

TABLE 1: FINANCIAL STATEMENT OF COMPANY X

ASSET 20X4 20X5

TABLE 2: INCOME STATEMENT OF COMPANY X in 20X4

(in millions VND)

Question 3 : Based on the table 3 ( The Cash Flow Statement of Company X at

TABLE 3: STATEMENT OF CASH FLOWS

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