Farm analysis: 16 corrected exercises

Welcome to this article whose sole purpose is to help you progress with corrected sig exercises from the chapter on operating analysis of the Operational Management subject of the BTS MCO.

If you would like to first see or review the course on the same theme, I invite you to read my article Operational analysis: The 4 pillars to master

The 16 corrected exercises on intermediate management balances on this page mainly concern the study of the income statement, the creation of the table of intermediate management balances, the famous SIG.

You will also find corrected exercises on the following concepts: self-financing capacity, i.e. CAF. We will see the two resolution methods: the additive method and the subtractive method.

Here is the list of the 16 corrected sig exercises:

Corrected GIS exercises #1: Calculating the result – Knowing how to place it

States

The Cadastral business unit produces registers for notaries and town halls.

She gives you some accounting elements in order to calculate her result for financial year N:

  • Paper purchases (reams): €68
  • Sales of registers: €145
  • Postage: €870
  • Taxes: €14
  • Depreciation allowance: €11
  • Personnel costs: €25
  • Advertising costs: €4

Work to do

  1. Determine the amount of the result of the Cadastral business unit.
  2. Specify its exact place within the income statement.

Proposed correction

  1. Determine the amount of the result of the Cadastral business unit.

To calculate the result of the business unit, it is necessary to distinguish between expenses and products.

Calculation of products :

These are the sales of registers: €145

Load calculations :

This is all the remaining items, for a total of: €123

The result is calculated by taking the difference between the total of products and the total of expenses, i.e.:

Result: 145 – 000 = 21 030 €

The result of the business unit is therefore €21, and this is a profit.

  1. Specify its exact place within the income statement.

This is a profit so it will be on the expense side. after the “Total charges” line.

Corrected SIG exercises #2: Calculation of intermediate management balances – SIG

States

The Cadavre business unit manufactures and distributes coffins for funeral directors in the Nantes region.

Its manager, Mr. Levivant, wants to know the distribution of its results.

This is why he asks you to calculate the interim management balances.

To do this, he gives you his income statement in appendix 1.

Annexe 1 : UC Cadavre income statement

case davre annex 1 part 1

Appendix 1 (continued) : UC Cadavre income statement

case davre annex 1 part 2

Appendix 1 (continued and end) : UC Cadavre income statement

case davre annex 1 part 3

Work to do

  1. Calculate the GIS (Appendix 2 to be completed).

Proposed correction

Intermediate management balance table – SIG

case davre sig corrected 1

(1): This is the sales of goods item

(2): the cost of purchasing goods sold is equal to the difference between purchases of goods and the change in inventories of goods.

(3): the trade margin is equal to the difference between sales of goods and the cost of purchasing the goods sold.

(4): the amount corresponds to the finished product sales section.

(5): there is no destocking so the amount corresponds to the Production sold section.

(6): this is the sum of the balances already calculated: the commercial margin and the production for the financial year.

(7): the consumption item for the financial year from third parties is the sum of stored purchases of raw materials, the variation in stocks of raw materials, maintenance and repairs, the insurance premium, intermediary remuneration and fees, the Advertising, Transport of goods item, postal charges and finally banking services.

(8): added value = Commercial margin + production for the financial year – consumption for the financial year from third parties

Corrected interim management balance table – SIG (continued)

case davre sig corrected 1

(9): only the value added item because there are no operating subsidies.

(10): these are the items of taxes and duties, and personnel costs.

(12): (9) – (10)

(13): you must copy the balance that you have just calculated into the gross operating surplus (EBE)

(14): Depreciation allowances + provisions allowances

(15): (13) – (14)

(16): you must take the operating result to which you add the operating income

(17): interest charges + discounts granted

(18): (16) – (17)

(19): total exceptional products

(20): total exceptional charges

(21): the difference between (19) and (20)

(22): you must take the current result before tax to which you must add the exceptional result. These two balances have already been calculated.

(23): there is nothing to put because the balances are positive.

(24): (22) – (23)

Corrected interim management balance sheet table – SIG (end)

case davre sig corrected 3

(25): the equivalent of the heading product of asset disposals must be indicated: this is the item “on capital transactions” on the Exceptional income side.

(26): the equivalent of the book value of the assets transferred must be indicated: this is the “on capital operations” item on the Exceptional expenses side.

Corrected SIG exercises #3: Calculation of intermediate management balances – SIG

States

The Cadeau business unit makes and sells cakes for businesses and individuals in the Marseille region.

You are responsible for analyzing the composition of its income statement.

For this, you have access to its operating account as of 31/12/N-1

Appendix 1: Operating account as of 31/12/N-1

water case income statement 1

water case income statement 2

Work to do

  1. Calculate the GIS (Appendix 2 to be completed).

Proposed correction

Corrected interim balance table

water case sig corrected 1

(1): Purchases of raw materials + Other purchases and external charges

(2): Taxes and duties + salaries + social security contributions

Corrected interim balance table (continued and end)

water case sig corrected 2

(3): resumption of the balance already calculated Operating result to which you add the financial products

(4): this is the negative exceptional result already calculated to which you add the Income Tax item.

Corrected GIS exercises #4: Calculate a CAF

States

The Cadenas business unit manufactures and sells padlocks for use in shopping malls located inside airports.

In order to analyze its financial situation, you are responsible for calculating its self-financing capacity.

For this, you have the income statement (appendix 1) and the MIS table (appendix 2) of the business unit.

Appendix 1: Income statement

case davre annex 1 part 1

case davre annex 1 part 2

case davre annex 1 part 3

Work to do

  1. Calculate the amount of CAF.

Proposed correction

To answer the question we can use the additive method.

Net result: €33

+ Undisbursed charges:

Depreciation and provisions (operating expenses): €1

Depreciation and provisions (financial charges): €0

Depreciation and provisions (exceptional charges): €0

– Uncollected products:

Reversals of depreciation and provisions (operating income): €0

Reversals of depreciation and provisions (financial products): €0

Reversals of depreciation and provisions (exceptional income): €0

Exceptional products (on capital transaction): €120

Self-financing capacity: €35

The self-financing capacity is therefore €35.

It will make it possible to finance possible renewals of fixed assets or to remunerate shareholders.

Corrected GIS exercises #5: Calculate a CAF

States

The Cadran business unit manufactures and sells spare parts for watches and clocks in the Bordeaux region.

In order to analyze its financial situation, you are responsible for calculating its self-financing capacity.

For this, you have the income statement (appendix 1) and the MIS table (appendix 2) of the business unit.

Appendix 1: Income statement

case davre annex 1 part 1

case davre annex 1 part 2

case davre annex 1 part 3

Work to do

  1. Calculate the amount of CAF.

Proposed correction

To answer the question we can use the subtractive method.

Products giving rise to collections:

Sales of finished products: €35

Sales of goods: €15

Discounts obtained: €10

– Charges giving rise to disbursements:

Stored purchases of raw materials: €5

Variation in raw material stocks: €1

Purchases of goods: €90

Variation in merchandise stocks: €20

Maintenance and repairs: €2

Insurance premium: €1

Intermediary fees and charges: €240

Advertising, publications, public relations: €160

Transport of goods and public transport: €120

Telecommunications postage costs: €50

Banking and similar services: €70

Taxes, duties and similar payments: €1

Personnel costs: €3

Interest charges: €150

Discounts granted: €20

Penalties, tax and criminal fines: €25

Self-financing capacity: €35

The self-financing capacity is therefore €35.

It will make it possible to finance possible renewals of fixed assets or to remunerate shareholders.

Corrected GIS exercises #6: Calculate a CAF – Additive method

States

The following income statement is given:

exo video 88 income statement

Work to do

  1. Calculate the CAF using the additive method.

Proposed correction

The additive method takes into account the Depreciation and Amortization items and the Profit heading.

CAF = Profit + Depreciation allowance

CAF = 3 + 300 = 3 500 €

Corrected GIS exercises #7: Calculate a CAF – Subtractive method

States

The following income statement is given:

exo video 89 income statement

Work to do

  1. Calculate the CAF using the subtractive method.

Proposed correction

The subtractive method consists “globally” of a subtraction between products and expenses.

CAF = sum of products (excluding depreciation recoveries) – sum of expenses (excluding depreciation)

CIF = (14 – 000) – (2 – 000)

CAF = 3 500 €

Corrected GIS exercises #8: Calculation of the result of the exercise – Profit

States

The following table is given:

exo video 90 income statement

Work to do

  1. Calculate the result of the exercise.

Proposed correction

We will apply the following formula:

Result of the financial year = Total income – Total expenses

Result of the exercise = (12 + 000) – (2 + 000 + 4 + 000 +1)

Result of the exercise = 5 300 €

 

Interpretation & translation services :

The company makes a profit of €5.

Corrected GIS exercises #9: Calculation of the result of the exercise – Loss

States

The following table is given:

exo video 91 income statement

Work to do

  1. Calculate the result of the exercise.

Proposed correction

We will apply the following formula:

Result of the financial year = Total income – Total expenses

Result of the exercise = 12 – (000 + 6 + 000 + 2 +500)

Result of the exercise = – 4 700 €

 

Interpretation & translation services :

The company makes a loss of €4.

Corrected SIG exercises #10: Intermediate SIG management balances

States

The following income statement is given:

exo video 92 income statement

Work to do

  1. Present the interim management balances.

Proposed correction

exo video 92 intermediate management balances

exo video 92 intermediate management balances2

Corrected SIG exercises #11: Intermediate SIG management balances

States

The following income statement is given:

exo video 93 income statement

Work to do

  1. Present the interim management balances.

Proposed correction

exo video 93 sig 1

exo video 93 sig 2

Corrected SIG exercises #12: Intermediate SIG management balances

States

The following income statement is given:

exo video 94 income statement

Work to do

  1. Present the table of interim management balances.

Proposed correction

exo video 94 sig 1

exo video 94 sig 2

Corrected SIG exercises #13: Intermediate SIG management balances

States

The following income statement is given:

income statement - monbtsmco.com

Work to do

  1. Present the table of interim management balances.

Proposed correction

exo video 95 sig 1

exo video 95 sig2

Corrected GIS exercises #14: Calculating a turnover

States

An extract from the income statement is given.

exo video 96 income statement

Work to do

  1. Determine the amount of turnover.

Proposed correction

In an income statement, the amount of turnover may correspond to the heading “Sales of goods”.

This is the case in this exercise. The turnover amount is therefore €4.

Corrected GIS exercises #15: Calculating a turnover

States

The following extract from the income statement is given.

SIG Sales Calculation

Work to do

  1. Determine the amount of turnover.

Proposed correction

In an income statement, the amount of turnover may correspond to the heading “Provision of services”.

This is the case in this exercise. The turnover amount is therefore €12.

Corrected GIS exercises #16: Calculating a turnover

States

The following extract from the income statement is given.

exo video 98 extract income statement

Work to do

  1. Determine the amount of turnover.

Proposed correction

In an operating account, we can find the headings "Sales of goods" and "Provision of services", which correspond to the total amount of the company's turnover.

In this specific case, the company has a so-called “mixed” activity.

In this exercise, the turnover amount is therefore €23 (= €500 + €12).

12 thoughts on “Exploitation Analysis: 16 Corrected Exercises”

    • Hello Student,

      Yes, that's all, it's completely normal since it is there to balance the overall total of the "expenses" column. Conversely, a loss is entered on the "Products" side without the "-" sign.

      Good luck to you.

      Reply
    • Hello htban,

      Yes indeed !

      In fact, it is not about sales of goods but about a production sold. I correct 🙂

      Thank you.

      Damn if you take the exam in a few days.

      Reply
  1. Hello. My question is this: the income statement is made up of different systems, on which system were the GIS exercises used?

    When do we use one of these systems and on which company?

    Reply
    • Hello,
      The exercises are pure inventions. As a rule, the sigs are based on the company's accounting information system.
      For more information, I advise you to contact an accountant/chartered accountant.

      Good continuation.

      Reply
  2. For the calculation of the VA, in the section "consumption of the financial year from third parties" should we not take into account only the accounts located between "change in stocks of goods" and "taxes"?

    Reply
    • Hello,

      The item “change in merchandise inventories” has already been used above for the calculation of the commercial margin.

      The “Taxes” item will be used immediately afterwards to calculate the “EBE (or IBE)” balance.

      Good luck to you.

      Reply

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