A company’s (sole proprietorship) PnL shows the following numbers: PnL Item Amount in kEUR Revenues 575.3 Material expenses -258.0 Personnel expenses -121.0 Depreciation -33.7 Other operating exp. -29.8 EBIT 132.8 Interest income 0.2 Interest expenses -3.8 EBT 129.2 Extraordinary expenses -12 Net Result 117.2 -  70% of material expenses are raw materials. These are included at historical costs. Current market values are 3% higher. -  Prices for the remaing 30% of material expenses are assumed to be 3% higher -  The owner’s management acitivity would result in add. costs of EUR 85k -  Personnel expenses include extraordinary government aids of 17k positively -  Depreciation includes 3.5k from assets no longer used in the operating process -  Other operating expenses include 9k of losses from customer defaults, the average is at 15k -  Capital employed is at EUR 800k with a weighted average cost of capital of 10% Based on the information above, what are the total costs?

Survey of Accounting (Accounting I)
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Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
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A company’s (sole proprietorship) PnL shows the following numbers:

PnL Item

Amount in kEUR

Revenues

575.3

Material expenses

-258.0

Personnel expenses

-121.0

Depreciation

-33.7

Other operating exp.

-29.8

EBIT

132.8

Interest income

0.2

Interest expenses

-3.8

EBT

129.2

Extraordinary expenses

-12

Net Result

117.2

  • -  70% of material expenses are raw materials. These are included at historical costs. Current market values are 3% higher.

  • -  Prices for the remaing 30% of material expenses are assumed to be 3% higher

  • -  The owner’s management acitivity would result in add. costs of EUR 85k

  • -  Personnel expenses include extraordinary government aids of 17k positively

  • -  Depreciation includes 3.5k from assets no longer used in the operating process

  • -  Other operating expenses include 9k of losses from customer defaults, the average is at 15k

  • -  Capital employed is at EUR 800k with a weighted average cost of capital of 10%

    Based on the information above, what are the total costs?

 

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