Assignment Task
According to directives from the company’s management, the year’s year-end appropriation must be adjusted so that the year’s tax expense is minimized. An investigation into the rules of the tax legislation shows that the untaxed reserves can amount to a maximum of SEK 1,380,000. The dividend paid in year x5 amounts to SEK 500,000.
Tax cost
Use the tax rate of 25% when calculating tax cost. Tax payment is assumed to coincide with tax expense.
Debts
As of 31/12 year x5, AB Solanum’s debts to suppliers amount to SEK 2,650,000. Other short-term liabilities amount to SEK 260,000 at the same time. At the end of December year x5, Solanum repays a long-term loan of SEK 880,000. This loan has run without amortization and this amortization was not planned at the previous financial statement. The existing long-term loans are also amortization-free and redemption only begins in year x7. The company’s total interest costs for year x5 amount to SEK 230,000.
Remember to set minus signs for costs and other negative values. Answer with amounts in thousands of kroner with a decimal where necessary.
Income statement for year x5
AB Solanum is a trading company. The task deals with the financial statements for year x5. Many parts of the financial statements are complete, but some data is missing. Your task is to complete the financial statements. Balance sheet from the financial statements per 31/12 year x4 can be found in the solution form.
The movement in x5
Sales revenue – SEK 15,400,000
Operating expenses, excluding cost of goods sold for AX43 and depreciation- SEK 12,500,000
The accounts receivable amount as of 31/12 x5 to a nominal SEK 1,480,000. A review of the accounts receivable shows that a claim of SEK 30,000 on the customer AB Verum has not been paid for eight months. Solanum decides to write down this claim by 80%. Please note that this write-down is not tax-deductible.
Stocks
All stocks except the stock of AX43 are valued according to laws and regulations. These other stocks amount to SEK 1,620,000 on 31/12 x5. The entering stock of AX43 on 1/1 of the year x5 was valued at SEK 70,000. According to the purchase journal, during the year Solanum purchased AX43 as follows:
Purchase: 4/2 20/6 7/11
Quantity: 1000 st 1500 st 1500 st
NOK/pc: 320 300 280
At the inventory per 31/12 year x5, there were 1,400 pcs of AX43 in stock. Ignore obsolescence deductions in the valuation. The net sales value for an AX43 amounts to SEK 330/piece.
Machines and fixtures
At the beginning of year x5, a machine is sold for SEK 500,000. At the time of sale, this machine had been used for three years and had a purchase price of 1100 and, like all other machines and fixtures, had an estimated useful life of 6 years. At the financial statements per 31/12 year x4, the total acquisition value for machines and fixtures was SEK 5,600,000. No machines and fixtures have passed the useful life limit in year x5. Assume that the capital gains that may arise are taxable/deductible.