| | Current Year Multiple Income Statement |
| | Particulars | Amount $ |
| | Sales Revenue | 850,000 |
| | less Cost of Goods Sold | -540,000 |
| | Gross profit | 310,000 |
| | Less expenses |
| | Salaries expense | 152,000 |
| | Insurance expense | 2,000 |
| | Depreciation expense | 57,500 |
| | Bad Debts expense | 8,500 |
| | Total expenses | 220,000 |
| | Net Income Before Interest & Tax | 90,000 |
| | less Interest expense | 21,250 |
| | Net Income | 68,750 |
| | Classsified Balancesheet |
| | | Previous Year | Current Year |
| | Assets |
| | Cash | 15,000 | 362,750 |
| | Accounts receivable | 225,750 | 320,750 |
| | Less Allowance for doubtful Debts | -20,000 | -23,500 |
| | Net Accounts Receivable | 205,750 | 297,250 |
| | Prepaid Insurance | 5,000 | 8,000 |
| | Inventory | 80,000 | 40,000 |
| | Total Current Assets | 305,750 | 708,000 |
| | Land | 50,000 | 50,000 |
| | Building | 150,000 | 150,000 |
| | Less Accumulated Depreciation on Building | -7,500 | -15,000 |
| | Net Building | 142,500 | 135,000 |
| | Equipment | 500,000 | 500,000 |
| | Less Accumulated Depreciation on Equipment | -50,000 | -100,000 |
| | Net Equipment | 450,000 | 400,000 |
| | Total Fixed Assets | 642,500 | 585,000 |
| | Total Assets | 948,250 | 1,293,000 |
| | Current Liabilities |
| | Accounts payable | 55,000 | 105,000 |
| | Notes Payable (Short term ) | 50,000 | 125,000 |
| | Salaries Payable | 5,000 | 2,000 |
| | Interest Payable | 17,250 | 21,250 |
| | Total Current Liabilities | 127,250 | 253,250 |
| | Notes Payable (long term ) | 350,000 | 500,000 |
| | Total Long term Liabilities | 350,000 | 500,000 |
| | Common stock | 300,000 | 300,000 |
| | Retained Earnings | 171,000 | 239,750 |
| | Total Liabilities and Equity | 948,250 | 1,293,000 |
| | Cash Flow Statement |
| | Particulars | Details $ | Amount $ |
| | Retained Earnings (239750-171000) | | 68,750 |
| | (+) Non cash expenses |
| | Depreciation | 57,500 |
| | Interest expense | 21,250 |
| | Net profit before working capital changes | | 147,500 |
| | Add Inventory | 40,000 |
| | Accounts payable | 50,000 |
| | Short term notes payable | 75,000 |
| | Interest Payable | 4,000 |
| | less Accounts Receivable | -91,500 |
| | Prepaid Insurance | -3,000 |
| | Salaries payable | -3,000 |
| | Cash from Operating Activities (A) | | 219,000 |
| | Cash from Investing Activities(B) | | Nil |
| | Long term Notes payable | 150,000 |
| | Less Interest expense | -21,250 |
| | Cash from Financing Activities© | | 128,750 |
| | A+B+C | | 347,750 |
| | Add Opening Balance of Cash | | 15,000 |
| | Closing Balance of cash | | 362,750 |
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kfreeman_capstone_week4_072712.xls
