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CashFlow Exercise Noans

The document is the balance sheet for ABC Widget Company for the year. It shows the company's assets, liabilities, and shareholders' equity for each month. The company's assets grew over the year as it invested in fixed assets like computers, equipment, and a patent. Its current assets like accounts receivable and inventory also fluctuated monthly. The company took on liabilities in the form of accounts payable, payroll taxes, and long-term debt. It also took an investment from Capital Inc. and paid dividends to shareholders in some months.

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102 views5 pages

CashFlow Exercise Noans

The document is the balance sheet for ABC Widget Company for the year. It shows the company's assets, liabilities, and shareholders' equity for each month. The company's assets grew over the year as it invested in fixed assets like computers, equipment, and a patent. Its current assets like accounts receivable and inventory also fluctuated monthly. The company took on liabilities in the form of accounts payable, payroll taxes, and long-term debt. It also took an investment from Capital Inc. and paid dividends to shareholders in some months.

Uploaded by

arwa_mukadam03
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 5

Page 1 of 5 ABC WIDGET COMPANY

FINANCIAL STATEMENTS
YEAR - 1

BALANCE SHEET Month==>


1 2 3 4 5 6 7 8 9 10 11 12

Assets Note: Business started in month 1 no prior activity.

Current Assets
Cash $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________
Accounts Receivable $ 48,750 $ 50,625 $ 52,500 $ 48,750 $ 45,000 $ 48,750 $ 52,500 $ 54,375 $ 56,250 $ 52,500 $ 54,375 $ 56,250
Inventory $ 9,625 $ 10,063 $ 10,500 $ 9,625 $ 8,750 $ 9,625 $ 10,500 $ 10,938 $ 11,375 $ 10,500 $ 10,938 $ 11,375
Prepaid Insurance $ 12,000 $ 11,000 $ 10,000 $ 9,000 $ 8,000 $ 7,000 $ 6,000 $ 5,000 $ 4,000 $ 3,000 $ 2,000 $ 1,000

Total Current Assets $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________

Fixed Assets

Computers $ 24,000 $ 30,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 50,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
Accum Deprec $ (667) $ (1,500) $ (2,667) $ (3,833) $ (5,000) $ (6,167) $ (7,556) $ (9,222) $ (10,889) $ (12,556) $ (14,222) $ (15,889)
Net Computers $ 23,333 $ 28,500 $ 39,333 $ 38,167 $ 37,000 $ 35,833 $ 42,444 $ 50,778 $ 49,111 $ 47,444 $ 45,778 $ 44,111

Equipment $ 60,000 $ 76,000 $ 84,000 $ 84,000 $ 84,000 $ 84,000 $ 95,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
Accum Deprec $ (1,000) $ (2,267) $ (3,667) $ (5,067) $ (6,467) $ (7,867) $ (9,450) $ (11,117) $ (12,783) $ (14,450) $ (16,117) $ (17,783)
Net Equipment $ 59,000 $ 73,733 $ 80,333 $ 78,933 $ 77,533 $ 76,133 $ 85,550 $ 88,883 $ 87,217 $ 85,550 $ 83,883 $ 82,217

Furniture & Fixtures $ 24,000 $ 30,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000 $ 42,000
Accum Deprec $ (286) $ (643) $ (1,143) $ (1,643) $ (2,143) $ (2,643) $ (3,143) $ (3,643) $ (4,143) $ (4,643) $ (5,143) $ (5,643)
Net Furniture & Fixtures $ 23,714 $ 29,357 $ 40,857 $ 40,357 $ 39,857 $ 39,357 $ 38,857 $ 38,357 $ 37,857 $ 37,357 $ 36,857 $ 36,357

Total Gross Fixed Assets $ 108,000 $ 136,000 $ 168,000 $ 168,000 $ 168,000 $ 168,000 $ 187,000 $ 202,000 $ 202,000 $ 202,000 $ 202,000 $ 202,000
Total Accum Depreciation $ (1,952) $ (4,410) $ (7,476) $ (10,543) $ (13,610) $ (16,676) $ (20,148) $ (23,982) $ (27,815) $ (31,648) $ (35,482) $ (39,315)
Net Fixed Assets $ 106,048 $ 131,590 $ 160,524 $ 157,457 $ 154,390 $ 151,324 $ 166,852 $ 178,018 $ 174,185 $ 170,352 $ 166,518 $ 162,685

Other Assets
Rent Deposit $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
Investment in Capital Inc. $ - $ - $ - $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Patent $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000
Amort Patent $ (368) $ (735) $ (1,103) $ (1,471) $ (1,838) $ (2,206) $ (2,574) $ (2,941) $ (3,309) $ (3,676) $ (4,044) $ (4,412)
Total Other Assets $ 84,632 $ 84,265 $ 83,897 $ 108,529 $ 108,162 $ 107,794 $ 107,426 $ 107,059 $ 106,691 $ 106,324 $ 105,956 $ 105,588

Total Assets $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________ $ _________
Page 2 of 5 ABC WIDGET COMPANY
FINANCIAL STATEMENTS
YEAR - 1

Liabilities & Shareholders' Equity

Liabilities

Current Liabilities
Accounts Payable $ 39,188 $ 42,138 $ 43,957 $ 39,357 $ 34,097 $ 39,357 $ 44,016 $ 46,470 $ 49,240 $ 43,980 $ 46,750 $ 48,910
Accrued Payables $ 5,812 $ 5,362 $ 6,043 $ 5,643 $ 5,903 $ 5,643 $ 5,984 $ 6,030 $ 5,760 $ 6,020 $ 5,750 $ 6,090
Payroll Payable $ 15,000 $ 12,500 $ 15,000 $ 13,750 $ 15,000 $ 13,750 $ 15,000 $ 15,000 $ 13,750 $ 15,000 $ 13,750 $ 15,000
Payroll Taxes Payable $ 1,800 $ 1,500 $ 1,800 $ 1,650 $ 1,800 $ 1,650 $ 1,800 $ 1,800 $ 1,650 $ 1,800 $ 1,650 $ 1,800
Income Taxes Payable $ 4,083 $ 8,167 $ 10,860 $ 12,978 $ 12,198 $ 14,331 $ 17,275 $ 21,056 $ 26,782 $ 29,604 $ 34,371 $ 38,947
Line of Credit Loan $ 10,000 $ 12,500 $ 15,000 $ 7,500 $ 5,000 $ 2,500 $ - $ - $ - $ - $ - $ -
Short Term Portion of Debt $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000
Total Current Liabilities $ 87,883 $ 94,167 $ 104,660 $ 92,878 $ 85,998 $ 89,231 $ 96,075 $ 102,356 $ 109,182 $ 108,404 $ 114,271 $ 122,747

Long Term Liabilities


Deferred Income Taxes $ 250 $ 275 $ 300 $ 325 $ 350 $ 375 $ 400 $ 425 $ 450 $ 475 $ 500 $ 525
Long Term Debt $ 36,000 $ 35,000 $ 34,000 $ 33,000 $ 32,000 $ 31,000 $ 30,000 $ 29,000 $ 28,000 $ 27,000 $ 26,000 $ 25,000
Short Term Portion of LTD $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000) $ (12,000)
Net Long Term Liabilities $ 24,250 $ 23,275 $ 22,300 $ 21,325 $ 20,350 $ 19,375 $ 18,400 $ 17,425 $ 16,450 $ 15,475 $ 14,500 $ 13,525

Total Liabilities $ 112,133 $ 117,442 $ 126,960 $ 114,203 $ 106,348 $ 108,606 $ 114,475 $ 119,781 $ 125,632 $ 123,879 $ 128,771 $ 136,272

Shareholders' Equity
Common Stock $ 10,000 $ 10,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000 $ 11,000
Paid-in Capital $ 200,000 $ 200,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000
Dividends $ - $ - $ (2,500) $ (2,500) $ (2,500) $ (5,000) $ (5,000) $ (5,000) $ (7,500) $ (7,500) $ (7,500) $ (10,000)
Retained Earnings $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Current Year Earnings $ 2,817 $ 10,400 $ 15,402 $ 19,335 $ 17,887 $ 21,848 $ 27,315 $ 34,338 $ 44,971 $ 50,213 $ 59,065 $ 67,563
Total Shareholders' Equity $ 212,817 $ 220,400 $ 243,902 $ 247,835 $ 246,387 $ 247,848 $ 253,315 $ 260,338 $ 268,471 $ 273,713 $ 282,565 $ 288,563

Total Liabilities & $ 324,950 $ 337,842 $ 370,863 $ 362,038 $ 352,736 $ 356,455 $ 367,790 $ 380,119 $ 394,103 $ 397,592 $ 411,336 $ 424,835
Shareholders' Equity
Page 3 of 5 ABC WIDGET COMPANY
FINANCIAL STATEMENTS
YEAR - 1

INCOME STATEMENT Month==>


1 2 3 4 5 6 7 8 9 10 11 12 Total Year

Revenue
Cash Sales $ 45,000 $ 47,500 $ 50,000 $ 45,000 $ 40,000 $ 45,000 $ 50,000 $ 52,500 $ 55,000 $ 50,000 $ 52,500 $ 55,000 $ 587,500
Credit Sales $ 65,000 $ 67,500 $ 70,000 $ 65,000 $ 60,000 $ 65,000 $ 70,000 $ 72,500 $ 75,000 $ 70,000 $ 72,500 $ 75,000 $ 827,500
Total Revenue $ 110,000 $ 115,000 $ 120,000 $ 110,000 $ 100,000 $ 110,000 $ 120,000 $ 125,000 $ 130,000 $ 120,000 $ 125,000 $ 130,000 $ 1,415,000

Cost of Good Sold


Inventory $ 38,500 $ 40,250 $ 42,000 $ 38,500 $ 35,000 $ 38,500 $ 42,000 $ 43,750 $ 45,500 $ 42,000 $ 43,750 $ 45,500 $ 495,250
Shipping Containers $ 5,500 $ 5,750 $ 6,000 $ 5,500 $ 5,000 $ 5,500 $ 6,000 $ 6,250 $ 6,500 $ 6,000 $ 6,250 $ 6,500 $ 70,750
Freight $ 3,300 $ 3,450 $ 3,600 $ 3,300 $ 3,000 $ 3,300 $ 3,600 $ 3,750 $ 3,900 $ 3,600 $ 3,750 $ 3,900 $ 42,450
Total Cost of Good Sold $ 47,300 $ 49,450 $ 51,600 $ 47,300 $ 43,000 $ 47,300 $ 51,600 $ 53,750 $ 55,900 $ 51,600 $ 53,750 $ 55,900 $ 608,450

Gross Profit $ 62,700 $ 65,550 $ 68,400 $ 62,700 $ 57,000 $ 62,700 $ 68,400 $ 71,250 $ 74,100 $ 68,400 $ 71,250 $ 74,100 $ 806,550

Operating Expenses
Advertising $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 24,000
Accounting Services $ 1,000 $ 1,500 $ 2,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,500 $ 14,000
Depreciation $ 1,952 $ 2,457 $ 3,067 $ 3,067 $ 3,067 $ 3,067 $ 3,472 $ 3,833 $ 3,833 $ 3,833 $ 3,833 $ 3,833 $ 39,315
Amortization $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 368 $ 4,412
Marketing $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 60,000
Telephone & Internet $ 2,200 $ 2,300 $ 2,400 $ 2,200 $ 2,000 $ 2,200 $ 2,400 $ 2,500 $ 2,600 $ 2,400 $ 2,500 $ 2,600 $ 28,300
Insurance $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000
Supplies - Office $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 9,000
Travel & Entertainment $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 30,000
Auto Expense $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 6,000
Facility Rent $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 60,000
Facility Maintenance $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000
Salaries & Wages $ 30,000 $ 25,000 $ 30,000 $ 27,500 $ 30,000 $ 27,500 $ 30,000 $ 30,000 $ 27,500 $ 30,000 $ 27,500 $ 30,000 $ 345,000
Payroll Taxes $ 3,600 $ 3,000 $ 3,600 $ 3,300 $ 3,600 $ 3,300 $ 3,600 $ 3,600 $ 3,300 $ 3,600 $ 3,300 $ 3,600 $ 41,400
Processing Fees $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 3,000
Legal $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000
Total Operating Expenses $ 58,120 $ 53,625 $ 60,434 $ 56,434 $ 59,034 $ 56,434 $ 59,840 $ 60,301 $ 57,601 $ 60,201 $ 57,501 $ 60,901 $ 700,427

Operating Profit $ 4,580 $ 11,925 $ 7,966 $ 6,266 $ (2,034) $ 6,266 $ 8,560 $ 10,949 $ 16,499 $ 8,199 $ 13,749 $ 13,199 $ 106,123

Other Inc/(Exp)-Interest Exp $ 247 $ 258 $ 270 $ 215 $ 193 $ 172 $ 150 $ 145 $ 140 $ 135 $ 130 $ 125 $ 2,180

Pre-tax Income $ 4,333 $ 11,667 $ 7,696 $ 6,051 $ (2,228) $ 6,094 $ 8,410 $ 10,804 $ 16,359 $ 8,064 $ 13,619 $ 13,074 $ 103,943

Income Tax Provision $ 1,517 $ 4,083 $ 2,693 $ 2,118 $ (780) $ 2,133 $ 2,944 $ 3,781 $ 5,726 $ 2,822 $ 4,767 $ 4,576 $ 36,380

Net Income $ 2,817 $ 7,583 $ 5,002 $ 3,933 $ (1,448) $ 3,961 $ 5,467 $ 7,023 $ 10,633 $ 5,242 $ 8,852 $ 8,498 $ 67,563

Current Year Earnings $ 2,817 $ 10,400 $ 15,402 $ 19,335 $ 17,887 $ 21,848 $ 27,315 $ 34,338 $ 44,971 $ 50,213 $ 59,065 $ 67,563
Page 4 of 5 ABC WIDGET COMPANY
FINANCIAL STATEMENTS
YEAR - 1

CASH FLOW STATEMENT 1 2 3 4 5 6 7 8 9 10 11 12 Total Year


Cash Flow from Operations

Net Income __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Add: Depreciation __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Add: Amortization __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Subtotal __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Change in Working Capital

Accounts Receivable __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Inventory __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Prepaid Insurance __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Accounts Payable __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Accrued Payables __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Payroll Payable __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Payroll Taxes Payable __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Income Taxes Payable __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Deferred Income Taxes __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Total Change in Working Capital __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Net Cash Flow from Operations __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Cash Used for Investments

Fixed Assets __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Rent Deposit __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Investment __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Patents __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Total Cash Used for Investments __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Cash Flow from Financing/Funding

Short Term Lending __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Long Term Loans __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Common Stock/PIC __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Dividends Paid __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Total Cash Flow from Funding __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Net Cash Flow for Period __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

Beginning Cash __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________
Page 5 of 5 ABC WIDGET COMPANY
FINANCIAL STATEMENTS
YEAR - 1

Ending Cash __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________

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