R3.

1 Beethoven (1)

Budgets Balance sheet 12/31/X1 (in thousands C.U.)

Sales 1,600 ASSETS SHAREHOLDERS EQUITY AND LIABILITIES

. Incl. Received in X2 1,400
Purchases 510 Fixed assets Shareholders' equity
. Incl. paid in X2 400
Merchandises ending inventory 130 Manufacturing equipment (net) 800 Capital 710
Repayment of debt 80 Reserves 300
Salaries and social expenses 430 Net Income for 19X1 216
Advertising expenses 250 Sub total 1,226
Taxes 120
Financial expenses 0 Current Assets Liabilities
Depreciation 40
Acquisition of fixed assets 300 Inventories Financial debts 110
Sales price of fixed assets sold 0
Book value of fixed assets sold 0 Merchandise inventory 150 Accounts payable 120 72
Increase of capital 0 216
New debt 0 Income tax payable 144 144
Accounts receivable 400
Percentage of distribution 33.33%
Income tax rate 40% Cash at Bank 250

Total 1,600 Total 1,600

Page 1
 R3.2 Beethoven (2)

Budgets Balance sheet 12/31/X1 (in thousands C.U.)

Sales 1,600 ASSETS SHAREHOLDERS EQUITY AND LIABILITIES

. Incl. Received in X2 1,400
Purchases 510 Fixed assets Shareholders' equity
. Incl. paid in X2 400
Merchandises ending inventory 130 Manufacturing equipment (net) 800 Capital 710
Repayment of debt 80 Reserves 300
Salaries and social expenses 430 Net Income for 19X1 216
. Sales persons 300 Sub total 1,226
. Administration staff 130
Advertising expenses 250 Current Assets Liabilities
Taxes 120
Financial expenses 0 Inventories Financial debts 110
Depreciation 40
Acquisition of fixed assets 300 Merchandise inventory 150 Accounts payable 120 72
Sales price of fixed assets sold 0 216
Book value of fixed assets sold 0 Income tax payable 144 144
Increase of capital 0 Accounts receivable 400
New debt 0
Cash at Bank 250
Percentage of distribution 33.33%
Income tax rate 40% Total 1,600 Total 1,600

Page 2
1 The Company was incorporated. Common stockholders invested cash. 10,000
2 Equipment of is acquired for cash. 1,200
3 Purchased merchandise inventory on open account, 9,000
4 Borrowed cash from a bank, 500
5 Merchandise carried in inventory at a cost of was 7,000
sold for cash for 6,000
and on open account for 5,000
6 Collection of the above accounts receivable, 4,000
7 Payments of accounts payable (see transaction 3). 8,000

8 Depreciation expense of was recognized. 120

9 Ending inventory is valued at cost, 2,000
Company A B C D E F
% % % % % %
Go Sport Suez Carrefour Rossignol Sanofi Michelin
Balance Sheet
Assets
Intangible fixed assets 37,624 6,706 9,897 16,676 53,075 427,447
Tangible fixed assets (net) 75,862 25,779 12,897 69,645 5,886 5,769,872
Financial fixed assets 8,241 6,707 2,339 2,572 3,344 582,673
Inventories 172,850 1,512 6,243 112,213 3,058 2,858,549
Accounts receivable 4,916 9,106 3,059 98,987 4,501 2,920,236
Other receivables 51,502 4,616 1,611 23,431 4,401 1,956,374
Cash 11,633 8,557 2,930 42,181 2,490 1,655,398
Total assets 362,628 62,982 38,977 365,705 76,755 16,170,549
Liabilities and shareholders' equity
Capital and reserves 114,095 10,889 6,942 90,289 39,559 4,161,457
Net income -9,928 1,804 1,387 7,203 -3,610 515,138
Provisions for risks 4,762 14,694 1,745 11,634 5,768 2,988,721
Financial liabilities 89,911 20,072 9,724 160,537 16,026 4,878,723
Accounts payable 122,949 12,730 14,362 50,730 2,765 1,598,724
Other debts 40,839 2,793 4,816 45,312 16,247 2,027,786
Total Liabilities and shareholders' equity 362,628 62,982 38,977 365,705 76,755 16,170,549

Company A B C D E F
% % % % % %
Balance Sheet
Assets
Intangible fixed assets 10.4 10.6 25.4 4.6 69.1 2.6
Tangible fixed assets (net) 20.9 40.9 33.1 19.0 7.7 35.7
Financial fixed assets 2.3 10.6 6.0 0.7 4.4 3.6
Inventories 47.7 2.4 16.0 30.7 4.0 17.7
Accounts receivable 1.4 14.5 7.8 27.1 5.9 18.1
Other receivables 14.2 7.3 4.1 6.4 5.7 12.1
Cash 3.2 13.6 7.5 11.5 3.2 10.2
Total assets 100.0 100.0 100.0 100.0 100.0 100.0
Equity and liabilities
Capital and reserves 31.5 17.3 17.8 24.7 51.5 25.7
Net income -2.7 2.9 3.6 2.0 -4.7 3.2
Provisions for risks 1.3 23.3 4.5 3.2 7.5 18.5
Financial liabilities 24.8 31.9 24.9 43.9 20.9 30.2
Accounts payable 33.9 20.2 36.8 13.9 3.6 9.9
Other debts 11.3 4.4 12.4 12.4 21.2 12.5
Total Equity and liabilities 100.0 100.0 100.0 100.0 100.0 100.0
Financial ratios
Net income/Sales (%) -1.5 4.4 1.9 1.5 -24.0 3.3
Sales/total assets (%) 182 65 186 131 20 97
Salaries and social charges/total assets (%) 27 12 17 22 N/A 30
Inventory turnover (sales/ending inventory) 3.8 26.9 11.6 4.3 4.9 5.5
Average collection period (days) 2.7 81.6 5.3 75.5 109.2 67.9
Budgets

Sales 1,300
. Incl. Received in X2 1,140
Purchases 520
. Incl. paid in X2 380
Raw materials ending inventory 120
Finished products ending inventory 140
Repayment of debt 60
Salaries and social expenses 400
Renting expenses 220
Taxes 100
Financial expenses 10
Depreciation 20
Acquisition of fixed assets 200
Sales price of fixed assets sold 0
Book value of fixed assets sold 0
Increase of capital 100
New debt 0

Percentage of distribution 50.00%

Income tax rate 40%
 Balance sheet 12/31/X1 (in thousands C.U.)

ASSETS SHAREHOLDERS EQUITY AND LIABILITIES

Fixed assets Shareholders' equity

Manufacturing equipment 600 Capital 500

Reserves 200
Net Income for 20X1 168
Current assets Sub total 868

Inventories Liabilities

Raw materials 80 Financial debts 100 168

Finished products 120 112
Accounts payable 110
Accounts receivable 140
Income tax payable 112 280
Cash at bank 250 0.4

Total 1,190 Total 1,190

Budgets

Sales 1,300
. Incl. Received in X2 1,140
Purchases 520
. Incl. paid in X2 380
Raw materials ending inventory 120
Finished products ending inventory 140
Repayment of debt 60
Salaries and social expenses 400
. Production 300
. Administrative staff 100
Renting expenses 220
Taxes 100
Financial expenses 10
Depreciation 20
Acquisition of fixed assets 200
Sales price of fixed assets sold 0
Book value of fixed assets sold 0
Increase of capital 100
New debt 0
Percentage of distribution 50.00%
Income tax rate 40%
 Balance sheet 12/31/X1 (in thousands C.U.)

ASSETS SHAREHOLDERS EQUITY AND LIABILITIES

Fixed assets Shareholders' equity

Manufacturing equipment 600 Capital 500

Reserves 200
Net Income for 20X1 168
Current assets Sub total 868

Inventories Liabilities

Raw materials 80 Financial debts 100 168

Finished products 120 112
Accounts payable 110
Accounts receivable 140
Income tax payable 112 280
Cash at bank 250 0.4

Total 1,190 Total 1,190

1 March 1 Incorporated Sibelius company with a capital stock of . 600
2 March 6 Purchased merchandises on credit: 350
3 March 12 Paid telephone expense for the month of March: 50
4 March 20 Sold merchandises for 500 Units (260 Units cash) and (240 Units on credit). 260
240
(The purchase price of the merchandises sold was 300

5 March 29 Paid the supplier of merchandises (see transaction 2).

6 March 30 Organized a physical inventory and computed an ending inventory of 50
cash
credit
Sales revenue 208,000
Cost of merchandise sold 105,000
Gross margin 103,000
Cost of selling (rent, procurement, sales force, etc.) 35,000
Cost of administration (Manager, accountant, etc.) 5,000
Financial expenses (on a 3-year loan of $133,000 at 6%) 2,000
Income before tax 61,000
Minus Income taxes (net rate of 30%) 18,300
Net Income after taxes 42,700 Attention: typographic error in the book. This am
graphic error in the book. This amount is correct.