--- VERSION A --Balance Sheet

ASSETS
Cash Ppd Equipment Rental Supplies Ppd Office Rent Total Assets 2,424,800 3,400 2,200 9,000 2,439,400

Income Statement
Sales Salaries Expense Office Rent Expense Supplies Expense Interest Expense Equipment Rent Expense Net Income 22,000 5,000 250,000 350,000 1,634,400 150,000 15,000 13,000 2,439,400 1,500,000 522,000 104,000 12,700 6,200 2,400 852,700

LIABILITIES/OE
Salaries Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Unearned Revenue Dividends Payable Accounts Payable Total L + OE

--- VERSION A --CFO, Indirect Method

Net Income:
Accounts Receivable Supplies Prepaid Rent Accounts Payable Interest Payable Unearned Revenue Salaries Payable Gain Loss Depreciation 840 -200 -300 -100 -200 -250 -100 500 -600 400 1,900 1,890

CFO, Direct Method

Revenue Accounts Receivable Unearned Revenue Cash from Customers Salaries Expense Salaries Payable Cash paid for Salaries Income Tax Expense Cash paid for Taxes Rent Expense Prepaid Rent Cash paid for Rent Interest Expense Interest Payable Cash paid for Interest Supplies Expense 14,000 -200 -100 13,700 6,300 -500 5,800 400 400 4,500 100 4,600 160 250 410 100

Cash Flow from Investing

Sale of PPE: Purchase of PPE: Sale of Investment: CFI: 550 -50 200 700

Cash Flow from Financing

Pay Note Payable: Dividends Paid: Contributed Capital CFF: -2,000 -370 580 -1,790

CFO:

--- VERSION B --Balance Sheet

ASSETS
Cash Ppd Equipment Rental Supplies Ppd Office Rent Total Assets 2,755,800 3,400 2,600 10,000 2,771,800

Income Statement
Sales Salaries Expense Office Rent Expense Supplies Expense Interest Expense Equipment Rent Expense Net Income 21,500 6,667 300,000 360,000 1,744,633 320,000 5,000 14,000 2,771,800 1,600,000 511,500 112,000 13,300 7,867 2,400 952,933

LIABILITIES/OE
Salaries Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Unearned Revenue Dividends Payable Accounts Payable Total L + OE

--- VERSION B --CFO, Indirect Method

Net Income:
Accounts Receivable Supplies Prepaid Rent Accounts Payable Interest Payable Unearned Revenue Salaries Payable Gain Loss Depreciation 1,240 -300 -100 -200 -100 -350 -200 400 -600 400 1,900 2,090

CFO, Direct Method

Revenue Accounts Receivable Unearned Revenue Cash from Customers Salaries Expense Salaries Payable Cash paid for Salaries Income Tax Expense Cash paid for Taxes Rent Expense Prepaid Rent Cash paid for Rent Interest Expense Interest Payable Cash paid for Interest Supplies Expense 14,200 -300 -200 13,700 6,100 -400 5,700 400 400 4,400 200 4,600 260 350 610 100

Cash Flow from Investing

Sale of PPE: Purchase of PPE: Sale of Investment: CFI: 650 -100 100 650

Cash Flow from Financing

Pay Note Payable: Dividends Paid: Contributed Capital CFF: -1,950 -570 480 -2,040

CFO:

--- VERSION C --Balance Sheet

ASSETS
Cash Ppd Equipment Rental Supplies Ppd Office Rent Total Assets 3,115,800 3,400 2,700 11,000 3,132,900

Income Statement
Sales Salaries Expense Office Rent Expense Supplies Expense Interest Expense Equipment Rent Expense Net Income 24,800 8,333 350,000 450,000 1,750,767 510,000 25,000 14,000 3,132,900 1,700,000 580,800 120,000 13,200 9,533 2,400 974,067

LIABILITIES/OE
Salaries Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Unearned Revenue Dividends Payable Accounts Payable Total L + OE

--- VERSION C --CFO, Indirect Method

Net Income:
Accounts Receivable Supplies Prepaid Rent Accounts Payable Interest Payable Unearned Revenue Salaries Payable Gain Loss Depreciation 940 -100 -400 -100 -300 -150 200 300 -600 300 1,800 1,890

CFO, Direct Method

Revenue Accounts Receivable Unearned Revenue Cash from Customers Salaries Expense Salaries Payable Cash paid for Salaries Income Tax Expense Cash paid for Taxes Rent Expense Prepaid Rent Cash paid for Rent Interest Expense Interest Payable Cash paid for Interest Supplies Expense Accounts Payable Incr. in Supplies Cash paid for Supplies 14,300 -100 200 14,400 6,600 -300 6,300 500 500 4,400 100 4,500 260 150 410 100 300 400 800 1,890

Cash Flow from Investing

Sale of PPE: Purchase of PPE: Sale of Investment: CFI: 650 -200 400 850

Cash Flow from Financing

Pay Note Payable: Dividends Paid: Contributed Capital CFF: -2,150 -70 380 -1,840

CFO:

CFO:

--- VERSION D --Balance Sheet

ASSETS
Cash Ppd Equipment Rental Supplies Ppd Office Rent Total Assets 3,317,800 3,400 3,300 12,000 3,336,500

Income Statement
Sales Salaries Expense Office Rent Expense Supplies Expense Interest Expense Equipment Rent Expense Net Income 21,000 10,000 400,000 390,000 1,805,500 680,000 15,000 15,000 3,336,500 1,700,000 501,000 128,000 13,600 11,200 2,400 1,043,800

LIABILITIES/OE
Salaries Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Unearned Revenue Dividends Payable Accounts Payable Total L + OE

--- VERSION D --CFO, Indirect Method

Net Income:
Accounts Receivable Supplies Prepaid Rent Accounts Payable Interest Payable Unearned Revenue Salaries Payable Gain Loss Depreciation 1,240 -300 -100 -200 -100 -350 -200 400 -600 400 1,900 2,090

CFO, Direct Method

Revenue Accounts Receivable Unearned Revenue Cash from Customers Salaries Expense Salaries Payable Cash paid for Salaries Income Tax Expense Cash paid for Taxes Rent Expense Prepaid Rent Cash paid for Rent Interest Expense Interest Payable Cash paid for Interest Supplies Expense Accounts Payable Incr. in Supplies Cash paid for Supplies 14,200 -300 -200 13,700 6,100 -400 5,700 400 400 4,400 200 4,600 260 350 610 100 100 100 300 2,090

Cash Flow from Investing

Sale of PPE: Purchase of PPE: Sale of Investment: CFI: 650 -100 100 650

Cash Flow from Financing

Pay Note Payable: Dividends Paid: Contributed Capital CFF: -1,950 -570 480 -2,040

CFO:

CFO:

FINANCIAL STATEMENT ANALYSIS

--- ALL VERSIONS --Current Ratio = Asset Turnover = Profit Margin = Return on Equity = EBITDA =
1.0625 0.3269 0.1471 0.2632 3400
or

or or

1.3750 0.2982

0.1724