Income Statement for the period ending June 30, 1989

Particulars
Amount
Sales
96000
Less
Legal fees
2700
Wages
32000
Salary
30000
Advertising expenses
3000
interest payable on loan
2900
depreciation on building

500

depreciaton on equipment
Depreciation on cassettes

770
17187.5

Office Supplies

500

Net Profit

6442.5

Depreciation on Casettes
16666.6666666667
520.8333333333
17187.5
Depreciation on Building
500
Depreciation on Equipment
770

Balance Sheet as on June 30, 1989

Assets
Current Assets

Fixed Assets

Liabilities
Current Liabilities

Equity

Cash at bank
Debtors
Prepaid Advertisement expenses
Land
Buildings
less: accumulated depriciation
Equipment
less: accumulated depriciation
Inventory
Preliminary expenses(legal charges)
Write of

Creditors
Loan
Interest Payable
Capital
Retained earnings

Balance Sheet as on Jan 1, 1989

Assets
Current Assets

Fixed Assets

Cash
Prepaid Preliminary expenses
Inventory
Land
Buildings
Equipment

Liabilities
Current Liabilities

Loan

Equity

Capital

45500
2200
3000
43000
25000
500
7700
770
2700
-2700

24500
6930
101562.5
0
226692.5

18750
33600
2900
165000
6442.5
226692.5

20200
2700
100000
43000
25000
7700

198600

33600

165000

198600

Cash Flow Statement

Net Profit
Add Depreciation
Cash Flow from Operating activities
Increase in Debtors
Decrease in Preliminary expenses
Increase in Prepaid Expenses
Increase in Creditors
Increase in Interest on Loan
Net Cash Flow from Operating activities

6442.5
18457.5
2200
2700
3000
18750
2900
44050

Cash Flow from Investment activities

Purchase of Inventory
Net Cash used in Investment activities
Cash Flow from Financing activities

18750
-18750

Net cash flow

Opening Balance

25300
20200

Net Closing Balance

45500