The questions all relate to transactions undertaken by Struli GmbH, a German business. Required: 1. The CFO uses the company's overdraft to pay a supplier €20,000. What is the impact on the net assets of the company in monetary terms? The Board of Directors decides that old inventory costing €18,000 is to be written off as the inventory is no longer sellable (it has gone out of fashion). Identical inventory in the past was sold to customers for €31,000. 2. What is the impact on the net assets of the company in monetary terms? 3. The company repays a €45,000 loan by taking out another loan for €30,000 and raising €15,000 new equity. What is the impact on the net assets of the company in monetary terms?

The questions all relate to transactions undertaken by Struli GmbH, a German business. Required: 1. The CFO uses the company's overdraft to pay a supplier €20,000. What is the impact on the net assets of the company in monetary terms? The Board of Directors decides that old inventory costing €18,000 is to be written off as the inventory is no longer sellable (it has gone out of fashion). Identical inventory in the past was sold to customers for €31,000. 2. What is the impact on the net assets of the company in monetary terms? 3. The company repays a €45,000 loan by taking out another loan for €30,000 and raising €15,000 new equity. What is the impact on the net assets of the company in monetary terms?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter2: The Basics Of Record Keeping And Financial Statement Preparation: Balance Sheet

Section: Chapter Questions

Problem 6E

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