Dispensers of California Inc

Income Statement
First Year Operations

Sales Revenue 598500

Cost of Goods Sold
Beginnning finished good inventory 0
add: Cogs manufactured 404000
Goods available for sale 404000
Less:finished goods inventory 0 404000
Gross Profit 194500
Operating Expenses 2500
Incorporation cost 25000
Out of pocket cost 63000
Selling general and administatio cost 8500
Depriciation expense 20000 119000
Patent cost 75500
Operating income
interest expense 500
income before tax 75000
income tax expense 22500
net income 52500
less: dividentds 5000
Retained earning 47500

Dispensers of California Inc

Income statement
Sales revenue 598500
cogs
cog manufactured 404000
goods available for sale 404000 404000
Gross profit 194500
Operating expenses
Incorporation cost 2500
out of pocket cost 25000
selling genearl and administation cost 63000
depreciation expense 8500
patent cost 20000 119000
Operatig income 75500
interest expense 500
income before tax 75000
income tax expense 22500
net income 52500
less: dividends 5000
retained earnings 47500

Dispensers of California Inc

schedule of cost of goods
Raw mateials used 197000
manufacturing overhead
manufacturing payroll 145000
manufacturing costs 62000 207000
total manufacturing cost 404000
add:beginning work in process inventory 0
total cost placed in process 404000
less: ending work in process inventory 0
cost of goods manufactured 404000

Dispensers of California Inc

schedule of cost of goods
raw materials used 197000
manufacturing overhead
manufacturing payrol 145000
maufcaturing costs 62000 207000
total manufacturing cost 404000
total cost placed in process 404000
cost of goods manufactured 404000

cash equity
Capital stock 80000 200000
incorporation cost 2500 2500
equipment 85000
out of pocket cost 25000 25000
component part 212100
loans payable 30000
interest expense 30500 500
manufacturing payrol 145000
manufacturing cost 62000
selling general admin 63000 63000

sale revenue 598500 598500

depriciation 8500
patent 20000
finished good 404000
cogs 404000
dividends 5000
income tax expense 5000 22500
78400 247500
 Dispensers of California Inc
Balance sheet
at end of first year operations
current assets
cash 78400
raw materials inventory 15100 93500
Non current assets
equipment 76500
patent 100000 176500
Total Assets 270000
Non current liabilities
income tax payable 22500
total liablities 22500
owners equity
capital 247500
total liablities and equity 270000
 Dispensers of California Inc
Income Statement
First Year Operations
sales 598500
cost of goods sold 412500
Gross profit 1860000
Operating expenses
selling and admin 63000
patent amortization 20000
out of pocket expenses 25000
incorporation cost 2500
total operating expenses 110500
Operating profit 75500
Interest 500
profit before tax 75000
tax 22500
net income 52500
dividend paid 5000
retained earning 47500