CTION 2 - PROBLEMS (12%) - Suggested time 60 minutes FOR THE PROBLEM QUESTIONS. YOU CAN USE WORD OR EXCEL TO PREPARE YOUR SOLUTIONS, AFTER YOU ARE DONE, PLEASE UPLOAD THEM TO MOODLE UNDER WEEK 10, INDICATE YOUR STUDENT NAME AND ID Problem 1 - Prepare Financial Statements (7%) Use the following information, to prepare XYZ's 2012 financial statements (Statement of Income & Statement of Financial Position): S Trade and other payable Trade receivables Accrued expenses Accumulated depreciation Administrative expenses DI Plant, property and equipment Share capital Cash Cost of sales Depreciation Dividends Income tax expense Intangible assets Inventories Invento Long-term borrowings Marketable securities Other expenses Other income Prepaid expenses Revenue 100.000 150.000 100,000 550.000 300.000 2.550.000 930.000 525,000 3,000,000 55.000 50.000 170,000 165,000 450,000 610.000 60.000 70,000 40,000 50,000 4,000,000 350,000 1,000,000 Distribution costs Retained earnings (beginning) 200,000 Short-term borrowings Problem 2 - Working Capital Management (5%) 2 1) With the following information, calculate the company's DWC for 2012 and 2013. 2013 $225,000 70.000 385.000 490.000 440,000 2.500.000 2012 $ 176,000 55.000 360,000 450,000 400.000 2.200,000 Profit for the year Depreciation/amortization Trade receivables Inventories Trade and other payables Revenue 2) Calculate the company's operating cash flows and CCE ratio for 2012 and 2013. Assume that in 2011 the company's net working capital was $350,000. 3) Bonus points (2%): Calculate the company's cash conversion cycle