AFT 2073: Financial Management
FINANCIAL MANAGEMENT
EXERCISE
QUESTION 1
FIZI BHD
Consolidated Balance Sheet (RM'000)
Cash
Marketable securities
Account Receivable
Inventories
Gross Fixed Assets
less: depreciation
2011
2012
8,000
9,332
1,350
1,555
20,535
22,123
33,117
28,505
111,667 131,065
45,100
53,826
TOTAL ASSETS
129,569 138,754
Account Payable
Notes Payable
Accrued Expenses
Long-term Debt
Common Stock
Retained Earnings
TOTAL LIABILITIES AND EQUITY
7,755
10,717
6,000
5,000
5,885
7,889
60,000
58,000
10,000
10,000
39,929
47,148
129,569 138,754
FIZI BHD
Income Statement for the year ended (RM'000)
Sales
less: COGS
Gross Profit
less: Operating Expenses
Depreciation
Other expenses
Operating Income/EBIT
less: Interest Expenses
Earnings Before Taxes
less: Corporate Taxes
Net Income
2011
2012
520,002 493,656
364,002 353,820
156,000 139,836
66,978
69,318
5,076
8,726
34,098
34,932
49,848
26,860
6,960
7,824
42,888
19,036
17,154
9,060
25,734
9,976
Based on the above financial statements, prepare a statement of sources and uses of funds
on a cash basis for FIZI Bhd.
AFT 2073: Financial Management
FIZI BHD
Statement of Sources and Uses of Fund
For the Year Ended 2012 (RM'000)
SOURCES OF FUND
USES OF FUND
FROM OPERATION:
TO WORKING CAPITAL:
Cash (9332 – 8000)
Marketable Securities
(1555-1350)
Account receivable
(22123-20535)
Notes Payable (60005000)
NET PROFIT
9,976
PLUS: DEPRECIATION
8,726
FROM WORKING CAPITAL
Inventories (28505 - 33117)
Account payable (10717 – 7755)
Accrued expenses (7889 - 5885)
TOTAL SOURCES OF FUND
Net Capital Expenditure /NCE
Dividend
4,612
2,962
2,004
28,280
= (GFA - Dep₂)- (GFA - Dep₁) + Current Depreciation
= (131, 065- 53,826) - (111,667 - 45,1000) + 8,726
= 19,398
= NI - Changes in Retained Earning
= 9,976 – (47148 – 39929)
= 2,757
1,332
205
1,588
1,000
DIVIDEND
NCE
L/T DEBT PAYMENT
(60000-58000)
2,757
19,398
TOTAL USES OF FUND
28,280
2,000
AFT 2073: Financial Management
QUESTION 2
Mutiara Ekspress Sdn Bhd
Balance Sheet As At 31 December 2011 and 2012 (in RM)
2011
2012
Assets
Cash
Account Receivable
Inventory
Total Current Assets
Net Plan & Equipment
Total Assets
210,000
355,000
507,000
1,072,000
6,085,000
7,157,000
215,000
310,000
328,000
853,000
6,527,000
7,380,000
Liabilities & Equities
Account Payables
Notes Payable
Total Current Liabilities
Long term debt
Common Stock
Retained Earnings
Total Liabilities and Equities
207,000
1,715,000
1,922,000
1,987,000
1,000,000
2,248,000
7,157,000
298,000
1,427,000
1,725,000
2,308,000
1,000,000
2,347,000
7,380,000
Mutiara Ekspress Sdn Bhd
Profit & Loss Statement for the year ended 31 December 2011 & 2012 (RM)
2011
Sales
(-) Cost of Goods Sold
Gross Profit
(-) Depreciation
Earnings Before Interest and Tax
(-) Interest Paid
Earnings Before Tax
(-) Tax
Net Income
3,900,000
2,800,000
1,100,000
550,000
550,000
100,000
450,000
60,000
390,000
2012
4,053,000
2,780,000
1,273,000
550,000
723,000
120,000
573,000
75,000
498,000
Based on the financial statement above, prepare Statement of Sources and Uses of Fund for
Mutiara Ekspress Sdn Bhd.
AFT 2073: Financial Management
Mutiara Ekspress Sdn Bhd
Statement of Sources and Uses of Fund for the year ended 31 Disember 2012
Sources of Fund
Uses of Fund
Net Income
498,000 Cash
Depreciation
550,000 Notes Payable
Account Receivable
179,000
Account Payable
91,000 Dividend
Long Term Debt
321,000 NCE
1,684,000
= NI - (RE₁ - RE₀)
= 498,000 - (2,347,000 - 2,248,000)
= 498,000 - 99,000
= 399,000
Net Capital Expenditure (NCE)
288,000
45,000
Inventory
Dividend
5,000
= (NFA₁ - NFA₀) + Depreciation
= (6,527,000 -6,085,000) + 550,000
= 992,000
399,000
992,000
1,684,000