TRANSACTION ASSETS

Land Pre.P.Ins. Bill. Rec. Cash

OPENING BALANCE 33250
1 Inventory Purchased
2 Merchandise Sold 2300
3 Merchandise Sold 2620
4 Fire Insurance Policy 1190 -1224
5 Land purchased 24000 -6000
6 Land Sold -12000 3000
7 withdraw for per.use -1000
8 withdraw for per.use
9 Merchandising sold 1310
10 PAID OFFF NOTES PAY. -6000
12000 1190 2620 25636
 = LIABILITIES + EQUITY
CAPITAL PROFIT
EXPENSES INCOMES
Inventory Land. Mort. Bill. Pay.
4500 12500 25250
5000 5000
-1500 1500 2300
-1700 1700 2620
34
18000
-9000
-1000
-750 -750
-850 850 1310
-6000
4700 9000 11500 23500 4084 6230
 Transactions Assets
Cash Patent Equipment

1a Hynes Investment 120000

1b Other Investors 80000
2 Incorporation Costs -2500
3 Equipment Purchase -85000 85000
4 Redesign Costs -25000
5 Component parts purchase -212100
6a Bank Loan 30000
6b Bank loan repaid -30000
6c Interest on Bank loan -500
7 Manufacturing Payroll -145000
8 Other Manufacturing Costs -62000
9 Selling and Admin. Exp. -63000
10 Ending Inventory (Inventory Consumed)*
11 Sales 598500
13 Depreciation -8500
14 Patent Amortization -20000
Ending work-in-progress and completed
15 (none) (Cost of Goods Sold)**
16 Dividends -5000
17 Income tax payable
78400 100000 76500

*Beginning component parts inventory 0 INCOME STATEMENT

Purchases 212100 Sales
Total Available 212100 LESS: Cost of Goods Sol
Ending Component parts Inventory 15100 GROSS MARGIN
Components Parts Used 197000 Selling and Admin. Expe
Amortization of Patents
**Cost of Goods Sold Incorporation costs
Components Parts Used 197000 Redesign costs
Manufacturing Payroll 145000 OPERATING PROFIT (E
Other manufacturing costs 62000 Interest expenses
Depreciation 8500 PROFIT BEFORE TAX
Cost of Goods Sold 412500 Tax
NET INCOME
STATEMENT OF RETAI
Opening Balance of Profi
Current Year Profit
Total Amount of Profit av
Dividends
Closing Balance (Reta
s "=" Liabilities "+" Equity
Inventory Bank Loan income tax Capital Profits
Expenses Incomes
120000
80000
2500

25000
212100
30000
-30000
500
145000
62000
63000
-197000 197000
598500
8500
20000

5000
22500 22500
15100 0 22500 200000 551000 598500

OME STATEMENT BALANCE SHEET

598500 Owners Equity
S: Cost of Goods Sold -412500 Capital
OSS MARGIN 186000 Retained Earnings
ng and Admin. Expenses 63000 Non-Current Liabilities
ortization of Patents 20000 Current Liabilities
rporation costs 2500 Taxes Payable
esign costs 25000 110500
ERATING PROFIT (EBIT) 75500 Non-Current Assets
rest expenses 500 Equipment (net)
OFIT BEFORE TAX 75000 Paytent (net)
22500 Current Assets
T INCOME 52500 Cash
TEMENT OF RETAINED EARNINGS Components Inventory
ning Balance of Profit 0
ent Year Profit 52500
l Amount of Profit available for distribution 52500
5000
sing Balance (Retained Earnings) 47500
 CASH FLOW STATEMENT (Direct Method
Cash Flows from Operating Activities
200000 Cash received from Customers - Cash Sales
47500 Cash paid to suppliers and employees
nt Liabilities 0 Incoporation Costs
Redesign Costs
22500 270000 Component Parts Purchase
Manufacturing Payroll
nt Assets Other Manufacturing Costs
76500 Selling and Admin. Exp.
100000 NET CASH GENERATED FROM FROM OPE
Cash Flows from Investing Activities
78400 Equipment Purchases
s Inventory 15100 270000 NET CASH USED IN INVESTING ACTIVITIE
Cash Flows from Financing Activities
Capital
Bank Loan
Payment of Bank Loan
Interest on Bank Loan
Dividends
NET CASH GENERATED FROM FINANCING AC
NET INCREASE IN CASH AND CASH EQUIVALE
OPENING BALANCE OF CASH
CLOSING BALANCE OF CASH
ENT (Direct Method)
erating Activities
stomers - Cash Sales 598500
and employees
-2500
-25000
-212100
-145000
-62000
-63000 -509600
ED FROM FROM OPERATING ACTIVITIES 88900
esting Activities
-85000
NVESTING ACTIVITIES -85000
ancing Activities
80000
30000
-30000
-500
-5000 74500
FROM FINANCING ACTIVITIES 74500
H AND CASH EQUIVALENTS 78400
0
78400
CASH FLOW STATEMENT (Indirect Method)
PROFIT BEFORE TAX 75000
ADD: NON CASH EXP AND NON OP.EXP
AMORTIZATION 20000
DEPRECIATION 8500
INTEREST 500 29000
LESS:NONCASH AND NON OP.INC 0
OPERATING PROFIT BEF.WC CHANGES 104000
ADD:INCREASE IN CL AND DECREASE IN CA 0
LESS:DECREASE IN CL AND INCREASE IN CA
INVENTORY 15100
NET CASH GENE. FROM OP. ACT.

CASH FLOWS FROM INVESTING ACT.

EQUIPMENT PURCHASE -85000
NET CASH USED IN INVEST. ACT

CASH FLOWS FROM FINANCING ACT.

PROCEEDS FROM CAPITAL 80000
INTEREST PAID -500
DIVIDEND PAID -5000
NET CASH GENE. FROM FINANCING ACT.
NET INCREASE IN CASH
88900

-85000

74500
78400
CASH 60000 25000 -2500 -16500
CAPITAL 60000
LOAN 25000 -14000
RENT 2500
SALARIES 16500
COMPUTER 40000
CREDITOR FOR COMPUTER 40000 -15000
SUPPLIES 3900 -710 620 1410
CREDITORS FOR SUPPLIES (GUPTA) 3900 -710 620 -3810
REVENUE FROM SERVICES 29200 19400
DEBTORS 29200 -14100 19400 -7100
UNEARNED REVENUE 9800
INTEREST EXPENSE 340
ELECTRICITY 450
SUPPLY EXPENSES 1410
OUTSTANDING ELECTRICITY BILL 450

INCOME STATEMENT
REVENUE FROM SERVICES 48600
LESS: EXPENSES
SALARIES 16500
SUPPL. EXP 1410
ELECTRICITY 450
RENT 2500
INTEREST 340 21200
NET INCOME 27400

BALANCE SHEET
ASSETS
COMPUTER 40000
SUPPLIES 2400
DEBTORS 27400
CASH 63850 133650

LIABILITIES
LOAN 11000
CREDITORS FOR COMPUTER 25000
OS.ELE.BILL 450
UNEARNED REVENUE 9800 46250

EQUITY
SHARE CAPITAL 60000
RESERVES AND SURPLUS 27400 87400

TOTAL LIABILITIES AND EQUITY 133650

 -15000 14100 9800

CASH FLOW STATEMENT (INDIRECT METHOD)

NET INCOME 27400

ADD:NON CASH AND NON OPERATING EXPENSES
INTEREST 340
LESS: NON CASH AND NON OPERATING INCOMES 0

OPERATING PROFIT BEFORE WC CHANGES 27740

ADD: INCREASE IN CL AND DECREASE IN CA
INCREAE IN OS. ELE.BILL 450
UNEARNED REVENUE 9800 10250

LESS: DECREASE IN CL AND INCREASE IN CA

INCREASE IN DEBTORS 27400
INCREASE IN SUPPLIES 2400 -29800

CASH FLOWS FROM OPERATING ACTIVITIES

CASH FOWS FROM INVESTING ACTIVITIES

PURCHASE OF COMPUTER -15000
CASH USED IN INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

PROCEEDS FROM SHARE CAPTIAL 60000
PROCEEDS FROM BANK LOAN 11000
INTEREST PAID -340
CASH FLOWS FROM FINANCING ACTIVITIES
NET INCREASE IN CASH AND CASH EQUIVALENTS
OPENING BALANCE
CLOSING BALANCE
 7100 -14000 -340 -3810

CASH FLOW STATEMNT (DIRECT METHOD)

A CASH RECEIVED FROM DEBTORS
OPENING DEBTORS 0
SALES DURING THE YEAR 48600
(29200+19400)
UNEARNED REVENUE 9800
58400
LESS: CLOSING DEBTORS 27400
CASH RECEIVED FROM DEBTORS 31000

B CASH PAID TO SUPPLIERS

CASH PAID TO GUPTA -3810

C CASH PAID TO EMPLOYEES

SALARIES -16500
RENT -2500
8190
CASH PAID TO SUPPLIERS AND EMPLOYEES -22810

CASH FLOWS FROM OPERATING ACTIVITIES 8190

-15000

70660
63850
0
63850
 63850
60000
11000
2500
16500
40000
25000
2400
0
48600
27400
9800
340
450

1410 450
154850 154850 0
BALANCE SHEET
1-Jun 30-Jun
CURRENT ASSETS
CASH 34983 66660
ACCOUNTS RECEIVABLE 21798 26505
NOTE RECEIVABLE 11700 0 11700
MERCHANDISE INVENTORY 29835 26520
SUPPLIES ON HAND 5559 6630
PREPAID INSURANCE 3150 2826
TOTAL CURRENT ASSETS 107025 129141

NON CURRENT ASSETS

LAND 89700 89700
BUILDING LESS DEPRECIATION 429000 427050
(585000-156000)(585000-157950)
EQUIPMENT LESS DEPRECIATION 7956 30732
(13260-5304)(36660-5928)
OTHR NON-CURRENT ASSETS 4857 5265
TOTAL NON CURRENT ASSETS 531513 552747
TOTAL ASSETS 638538 681888

CURRENT LIABILITIES
ACCOUNTS PAYABLE 8517 21315
BANK NOTES PAYBLE 8385 29250
TAXES PAYABLE 5700 7224
ACCRURED WAGES PAYABLE 1974 2202
TOTAL CURRENT LIABILITIES 24576 59991
OTHER NON CURRENT LIABILITIES 2451 2451
TOTAL LIABILITIES 27027 62442
SHAREHOLDERS EQUITY
EQUITY CAPITAL 390000 390000
RETAINED EARNINGS 221511 229446 7935
TOTAL SHAREHOLDERS EQUITY 611511 619446
TOTAL LIABILITIES AND EQUITY 638538 681888

19635
 INCOME STATEMENT

SALES
CASH SALES 44420
CREDIT SALES 26505
LESS: COST OF SALES
GROSS MARGIN
EXPENSES
a WAGES
FROM CASH BOOK 5660
LESS:OPENING 1974
3686
ADD: CLOSING 2202 5888
b UTILITIES 900
c SUPPLIES EXPENSES
OPENING 5559
ADD:PURCHASES FROM CASH BOOK 1671
7230
LESS: CLOSING BALANCE 6630 600
d INSURANCE
OPENING 3150
LESS: CLOSING BALANCE 2826 324

e DEPRECIATION 2574
(157950-156000)+(5928-5304)

F MISCELLANEOUS EXPENSES 135

TOTAL EXPENENSES
INCOME BEFORE TAX
INCOME TAX EXPENSES
NET INCOME
LESS: DIVIDENDS
INCREASE IN RETAINED EARNINGS
 70925
39345
31580

10421
21159
1524
19635
11700
7935
COST OF SALES

OPENING INVENTORY 29835

PURCHSES
CASH 14715
CREDIT 21315
65865
LESS: CLOSTING INVENTORY 26520
COST OF SALES 39345

CASH FLOW STATEMENT

NET INCREASE IN RETAINED EARNINGS

ADD: NON CASH NON OP. EXP
DEPRECIATION 2574
DIVIDEND PAID 11700

LESS:NON CASH NON OP.INC

OP.PROFIT BEFORE WC CHANGES

ADD: INCREASE IN CL AND DECREASE IN CA

DECREASE IN NOTES RECEIVABLE 11700
DECREASE IN INVENTORY 3315
DECREASE IN PREPAID INSURANCE 324
INCREASE IN ACCT. PAYABLE 12798

INCREASE IN TAXES PAYABLE 1524

INCREASE IN WAGES PAYABLE 228

LESS: DECREASE IN CL AND INCREASE IN CA

INCREASE IN ACCT. RECEIVABLE 4707
INCREASE IN SUPPLIES ON HAND 1071

NET CASH FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

PURCHSE OF EQUIPMENT 23400
PURCHASE OF OTHER CURRENT ASSETS 408
NET CASH FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

DIVIDEND PAID -11700
PROCEEDS FROM BANK LOAN 20865
NET CASH FROM FINANCING ACTIVITIES

NET INCREASE IN CASH AND CASH EQUIVALENTS

ADD: OPENING CASH AND CASH EQUIVALENTS
CLOSING CASH AND CASH EQUIVALENTS
 7935

14274

22209

29889

5778

46320

-23808
9165

31677
34983
66660
EXHIBIT - 1
Cost
Crane 2,100,000
Shipping, Handling and assembling 50,000
Additional in-house assembling 20,000
Operator training 15,000
Consulting fee 5,000
Serverence for forklift operators 25,000
Support beams for dock 40,000
Special paint work 30,000
Delta cargo stencil 3,000

2,288,000

LESS: Salvage Value

Depreciable Costs

EXHIBIT 2

SLM Depreciation Cost

Salvage
Life
Depreciation

Year S
Cost of the Asset
2005 2,263,000
2006 2,263,000
2007 2,263,000
2008 2,263,000
2009 2,263,000
2010 2,263,000
2011 2,263,000
2012 2,263,000
2013 2,263,000
2014 2,263,000
2015 2,263,000
2016 2,263,000
2017 2,263,000
2018 2,263,000
2019 2,263,000
 TOTAL

EXHIBIT - 3
Budgeted Income Statement

2005 (SLM)
Revenues 2,238,500
Selling, General and Admn Expenses 552,250
EBDITA 1,686,250
Depreciation 216,300
EBIT 1,469,950
Loss on Sale of Asset 40,000
Interest Expense 38,000
EBT 1,391,950
Taxes --- @ 35% 487,183
EAT - Net Income 904,768

SLM
EBT 1,391,950
20% ALLOCATED TO BONUS POOL 278,390
 Capitalised Expensed
2,100,000
50,000
20,000
15,000
5,000
- 25,000
40,000
30,000
3,000

2,263,000 25,000

100,000

2,163,000

2,263,000 WDV Depreciation Cost

100,000 Salvage
10 salvage/cost
216,300 (1-(0.04419)^(1/10))

SLM
Dep. Acc. Depre. Carrying Amount
216,300 216,300 2,046,700
216,300 432,600 1,830,400
216,300 648,900 1,614,100
216,300 865,200 1,397,800
216,300 1,081,500 1,181,500
216,300 1,297,800 965,200
216,300 1,514,100 748,900
216,300 1,730,400 532,600
216,300 1,946,700 316,300
216,300 2,163,000 100,000
216,300 2,379,300 -116,300
216,300 2,595,600 -332,600
216,300 2,811,900 -548,900
216,300 3,028,200 -765,200
216,300 3,244,500 -981,500
 2,163,000

2005 (DDM)
2,238,500
552,250
1,686,250
606,406
1,079,844
40,000
38,000
1,001,844
350,645
651,199

WDV
1,001,844
200,369
 2263000
100000
0.04419
27%

WDV
Cost of the Asset Dep. Acc. Depre. Carrying Amount
2,263,000 606,405.9 606,406 1,656,594
2,263,000 443,910.1 1,050,316 1,212,684
2,263,000 324,957.5 1,375,273 887,727
2,263,000 237,880.1 1,613,154 649,846
2,263,000 174,136.4 1,787,290 475,710
2,263,000 127,473.9 1,914,764 348,236
2,263,000 93,315.3 2,008,079 254,921
2,263,000 68,310.0 2,076,389 186,611
2,263,000 50,005.3 2,126,394 136,606
2,263,000 36,605.6 2,163,000 100,000
2,263,000 26,796.6 2,189,797 73,203
2,263,000 19,616.0 2,209,413 53,587
2,263,000 14,359.6 2,223,772 39,228
2,263,000 10,511.7 2,234,284 28,716
2,263,000 7,694.9 2,241,979 21,021
2,163,000
Diff. Dep.

390,105.94
227,610.07
108,657.48
21,580.08
-42,163.57
-88,826.13
-122,984.73
-147,990.00
-166,294.73
-179,694.42
-189,503.45
-196,684.00
-201,940.41
-205,788.29
-208,605.06
-
TRANSACTION ANALYSIS AS OF NOV2, 2009
ASSETS

Cash Equipment
Capital 48000
Borrowed Loan from local bank 21000
Equipment Purchase -53200 53200
Inventory -2800
Local Operating Expenses -1428
Cash Register -1400
CLOSING BALANCE 10172 53200
ASSETS 69000
LIABILITIES 21000
EQUITY 48000
69000 69000

TRANSACTION ANALYSIS AS OF 31ST MARCH, 2010

ASSETS

Cash Equipment
OPENING BALANCE 10172 53200
Ski Instructors (Bills Receivable)
Suppliers (Bills Payable)
Depreciation -2445
Inventory Consumed (2800-2430)
Repayment of Bank Loan -2100
Expenses for the period (Nov1,2009-31st Mar, 2010)
CLOSING BALANCE 8072 50755

BALANCE SHEET AS ON 31st Mar, 2010

EQUITY AND LIABILITIES

Equity:
Share Capital (Balancing Figure)
(Total Assets - (NCL+CL) = 57629-20483) 37146
(each parter share = 37146/3=12382)
LIABILITIES:
Non-Current Liabilities: 0

current liabilities:
Bills Payables 1583
Loan Payable 18900
20483

ASSETS
Non-Current Assets:
Caf Equipment Net of Depreciation 50755
Cash Register 1400
Current Assets
Accounts Receivables 870
Cash (as given in case (311+1030) 1341
Prepaid Expense 833
Ending Inventory 2430
Cash Register Pre-Paid Exp. Inventory

2800
1428
1400
1400 1428 2800

PREPARE THE BALANCE SHEET IN PROPER FORMAT

Cash Register Pre-Paid Exp. Inventory

1400 1428 2800

-370

-595
1400 833 2430

37146/3=12382

57629
57629
 LIABILITIES

Loan

21000

21000

OPER FORMAT

LIABILITIES

Bills Recei. Loan

21000
870

-2100

870 18900

LONE PINE CAF (B)

INCOME STATEMENT FOR THE PERIOD NOV1, 2009 THROUGH
31ST MARCH, 2010

Sales:
Cash Sales 43480
Credit Sales 870
LESS: Cost of Goods Sold (COGS)
GROSS MARGIN
LESS: OPERATING EXPENSES
Salaries to Partners 23150
Wages to parttime employees 5480
Telephone and Electricity 3270
Miscellaneous 255
Rent payable 7500
Operating licence expenes 595
EBITDA
Depreciation
EBIT
Interest
EBT
Tax
EAIT
 EQUITY
CAPITAL PROFITS
INCOMES EXPENSES
48000

48000 0 0

EQUITY
CAPITAL PROFITS
Bills Paya. INCOMES Inventory EXPENSES
48000 0 0
870
1583 1583
2445
370

595
1583 48000 870 4028

NOTES:
2009 THROUGH
COST OF GOODS SOLD
Opening Inventory 2800
ADD: Net Purchases
Cash Purchases 10016
44350 Credit Purchases 1583 11599
11969 Total Inventory 14399
32381 LESS: Closing Inventory 2430
COST OF GOODS SOLD 11969

40250
 -7869
-2445
-10314
-540
-10854
0
-10854
 Ofce SUPPLY EXPENSES
RENNOVATION AND

PREPAID ADVT
EQUIPMENT
INVENTORY

SOFTWARE
LEGAL FEE

BUILDING
CAPITAL
SL NO

CASH

LAND

LOAN
1 66000 66000
2 99000 99000
3 -2700 2700
4 -14400 43000 5000 33600
5 -20000 20000
6 -100000 100000
7 -6700 6700
8 -1000 1000
9 -500 500
10 -6000 6000
11 18750
12 93800
13 -62000
TOTAL 45500 165000 2700 43000 25000 33600 118750 6700 1000 500 6000

ASSET/EXPENSES 45500 2700 43000 25000 118750 6700 1000 500 6000 2200
A. ACCRUACY
LIABI/EQU./INCO. 165000 33600 96000 18750

CASH FLOW STATEMENT (INDIRECT METHOD

Net Profit before income tax
Adjustments for Non-cash and Non-Operating Ite
DVD Amortization
Depreciation
Software Amortization
OPERATING PROFIT BEFORE WORKING CAPI
ADD: Increase in CL and Decrease in CA (Exclude

LESS: Decrease in CL and Increase in CA (Exclude

 ACCT. RECEIVABLE
ACCT.PAYABLE

SALARIES
SALES
Some data might not be similar

ADDITIONAL INFORMATION
1 AMORTIZATION OF DVD 17187.5
[(100000/3)*6/12]+[18750*1/3*1/12]
2 SOFTWARE 100
(1000/5)*6/12
3 DEP. ON BUILDING 500
(5000+20000)/25*6/12
4 DEP. ON EQUIPMENT 670
(6700/5)*6/12
5 ACCRUED INTEREST 2900
18750 6 ADVERTISEMENT
96000 2200 6000*6/12 3000
62000 7 Income Tax payable @35%
18750 96000 2200 62000 2254.875 2254.875

62000 313350 520.8333333333

313350

INDIRECT METHOD) CASH FLOW STATEMENT (DIRECT METHOD)

9343 Cash Flows from Operating Activities:
d Non-Operating Items Cash Received From Customers 93800
17188 Cash Paid to suppliers and Employees 71200
1170 Cash Generated from Operations 22600
 100 18457.5 Income tax Paid 0
RE WORKING CAPITAL CHANGES 27801 NET CASH GENERATED BY OPERATING ACTIVITIES 22600
rease in CA (Exclude Cash)
Cash Flows from Investing Activities:
Purchase of Land and Building 14400
rease in CA (Exclude Cash) Renovation of Building 20000
Purchase of Inventory (TAPES) 100000
Purchase of Equipment 6700
Purchase of Software 1000
NET CASH USED IN INVESTING ACTIVITIES -142100

Cash Flows from Financing Activities:

Proceeds from Issue of Share Capital 165000
NET CASH GENERATED BY FINANCING ACTIVITIES 165000

NET INCREASE IN CASH AND CASH EQUIVALENTS 45500

Cash and Cash equivalents (Opening) 0
Cash and Cash equivalents (End of the Period) 45500
Notes:
Cash Paid to Suppliers and Employees
Legal Fees 2700
Ofce Supplies 500
Salaries + Prepaid Advt. 68000
71200
 INCOME STATEMENT BALANCE SHEET
SALES REVENUE 96000 SOURCES OF FUNDS
EXPENSES EQUITY 165000
SALARIES 62000 RETAINED EARNINGS 4187.625
DVD AMORTISATION 17188
DEPRECIATION 1170 LOAN FUNDS
SOFTWARE AMORTISATION 100 TOTAL LIABILITIES AND EQUITY
LEGAL FEES 2700
ADVERTISEMENT(6000-3000) 3000 APPLICATION OF FUNDS
OFFICE SUPPLY EXPENSES 500 86657.5 FIXED ASSETS
OPERATING PROFIT 9342.5 LAND 43000
LESS: INTEREST 2900 BUILDING (NET) 24500
TAXABLE PROFIT 6442.5 EQUIPMENT (NET) 6030
LESS: TAX 2254.875 SOFTWARE (NET) 900
EAIT 4187.6 CURRENT ASSETS
CASH 45500
ACCT. RECEIVABLE 2200
PREPAID ADVT 3000
INVENTORY 101562.5
152263
LESS: CURRENT LIABILITIES
ACCT. PAYABLES 18750
ACC. INTEREST 2900
Tax Payable 2254.875
23905
NET CURRENT ASSETS
TOTAL ASSETS
HEET BALANCE SHEET
ASSETS
FIXED ASSETS
LAND 43000
169187.625 BUILDING (NET) 24500
33600 EQUIPMENT (NET) 6030
202788 SOFTWARE (NET) 900 74430

CURRENT ASSETS
CASH 45500
ACCT. RECEIVABLE 2200
PREPAID ADVT 3000
INVENTORY 101562.5 152263
74430 TOTAL ASSETS

LIABILITIES

LOAN FUNDS 33600

ACCT. PAYABLES 18750
ACC. INTEREST 2900
Tax Payable 2254.875 23904.875
EQUITY
EQUITY 165000

RETAINED EARNINGS 4187.625

128358
202788 TOTAL LIABILITIES AND EQUITY
226692.5

57504.875

169187.63

226692.5
CAPITAL 20000
CASH 20000 -3500 -9240
REVENUE FROM SERVICES 22920 -1300 970
RENT 3500
SALARIES 9240
SUPPLIES 2300 950
VIDEO CAMERA 30000
CRDITORS FOR VIDEO CAMERA 30000 -25000
INSURANCE 2400
ELECTRICITY 910
TELEPHONE 450
DEBTOR 970
UNEARNED REVENUE 1300
CREDITORS FOR SUPPLIES 950

INCOME STATEMENT
REVENUE FROM SERVICES 22590
LESS: EXPENSES:
RENT 3000
SALARIES(9240+380) 9620
SUPPLY EXPENSES 1710
DEPRECIATION 3000
INSURANCE PREMIUM 1100
ELECTRICITY 1005
TELEPHONE 450
VIDEO CAMARA RENTAL 500 20385
NET INCOME 2205

BALANCE SHEET
ASSETS
VIDEO CAMERA LESS DEP. 27000
SUPPLIES 1540
PREPAID RENT 500
PREPAID INSURANCE 1300
DEBTORS 970 31310

LIABILITIES
UNEARNED REVENUE 1300
OUTSTANDING SALARIES 380
OUTSTANDING RENT FOR CAMERA 500
OUTSTANDING ELECTRICITY CHARGES 95
BANK OVERDRAFT (NEGATIVE CASH BALANCE) 880
CREDITORS FOR VIDEO CAMERA 5000
CREDITORS FOR SUPPLIES 950 9105

SHAREHOLDER FUNDS
EQUITY CAPITAL 20000
RESERVES AND SURPLUS 2205 22205
TOTAL LIABILITIES AND EQUITY 31310
-2300 -25000 -2400 -910

CASH FLOW STATEMENT (INDIRECT METHOD)

NET INCOME 2205
ADD:NON CASH &NON OP.EXP
DEPRECIATION 3000
LESS:NON CASH &NON OP.INC 0 3000
OP BEFORE WC CHANGES 5205

ADD:INCREASE IN CL AND DECREASE IN CA

INCREASE IN UNEARNED REVENUE 1300
INCREASE IN OUT.STAN EXP ( ALL) 975
INCREASE IN CREDITORS FOR SUPPLIES 950 3225

LESS: DECREASE IN CL AND INCREASE IN CA

INCREASE IN PREPAID RENT 500
INCREASE IN PREPAID INSURANCE 1300
INCREASE IN DEBTORS 970
INCREASE IN SUPPLIES 1540 4310

CASH PROVIDED BY OP. ACTIVITIES 4120

CASH FLOWS FROM INVESTING ACTIVITIES

PURCHASE OF VIDEO CAMERA 25000
CASH USED BY INVEST. ACTIVITIES -25000

CASH FLOWS FROM FINANCING ACTIVITIES

PROCEEDS FROM SHARE CAPITAL 20000
CASH PROVIDED BY INVEST. ACTIVITIES 20000

NET DECREASE IN CASH AND CASH EQUI -880

 20000
-450 22920 -880
22590
3500
9240
3250
30000
5000
2400
910
450
970
1300
950
49840 49840

CASH FLOW STATEMENT (DIRECT METHOD)

A CASH RECEIVED FROM CUSTOMERS
OPENING DEBTORS 0
SALES REVENUE 22590
LESS:CLOSING DEBTORS 970
21620
ADD: UNEARNED REVENUE 1300
CASH RECEIVED FROM DEBTORS

B CASH PAID TO SUPPLIERS

C CASH PAID TO EMPLOYEES

SALARIES 9240
TELEPHONE 450
ELECTRICITY 910
INSURANCE 2400
RENT 3500

NET CASH PROVIDED BY OP. ACTIVITIES

 CALCULATION FOR SUPPLY EXPENSES
OPENING SUPPLIES 2300
ADD:DURING THE YEAR PURCHASES 950
3250
LESS: CLOSING SUPPLIES (e) 1540
SUPPLY EXPENSES 1710

ADDITIONAL INFORMATION
SALARIES UNPAID (d) 380
RENT PAID IN ADVANCE (c ) 500
DEPRECIATION (f) 3000
INSURANCE PREMIUM (g) 1300
ELECTRICITY (h) 95
CAMERA RENT (i) 500
UNEARNED REVENUE (a) 1300
DEBTORS FOR SERVICES (b) 970

22920

2300

16500

4120