Student Assessment Task

Assessment Task 6,7,8

Universal electric company

Income Statement (Projected)
Year ended 30 June
Income January Februry March

Revenue 440,000 484,000 532,400

Cost of goods sold 308,000 338,800 372,680

Gross profit 132,000 145,200 159,720

Expenses

Sales salaries 18,000 18,000 18,000

Sales commission 4,400 4,840 5,324

Advertising and promotion 19,000 19,000 19,000

Administrative salaries 21,000 21,000 21,000

Depreciation 25,000 25,000 25,000

Intrest on long term loan 2,500 2,500 2,500

Property taxes 900 900 900

Total Expenses 90,800 91,240 91,724

Net Income (Loss) before income tax 41,200 53,960 67,996

 Universal electric company
Projected balance sheet
As of 31 March
Assets January Februry March

Cash at bank 25,000 25,000 25,000

Accounts receivable 297,000 326,700 359,370

Inventory 154,000 169,400 136,340

Building and equipment 626,000 626,000 626,000

Inventory holding system 125,000 125,000 125,000

Total assets 1,227,000 1,272,100 1,271,710

Liabilities

Accounts payable 264,000 269,440 245,154

Long term loan interest payable 12,500 - 5,000

Property taxes payable 1,800 - 900

Long term liabilities

Long term loan payable 300,000 300,000 300,000

Total liabilities 578,300 569,440 551,054

Net Assets 648,700 702,660 720,656

Equity

Share Capital 500,000 500,000 500,000

Retained Earning 148,700 202,660 270,656

Dividend paid - - 50,000

Total Equity 648,700 702,660 720,656

 Universal electric company
Statement of changes in equity
For quarter 31 March

Equity January Februry March

Share Capital 500,000 500,000 500,000

Retained Earning 267,100 442,660 635,776

Dividend paid - - 50,000

Total Equity 767,100 942,660 1,085,776