Jam MuhammadBi

l
al
Mhammad YasirAmin

Rol
lno#45
52

M.
com (
Mor
ning)

Assi
gnment
:Dr
.Asi
fYassenSab(
Ent
repr
eneur
shi
p)

Topi
csofAssi
gnment
s:
Ther
ear
ethet
hreet
opi
csofassi
gnmentar
egi
venbel
ow,

 I
ncomest
atement

 Cashf
lowst
atement

 Bal
ancesheet

I
ncomest
atement
:
Anincomestatementi
soneofthethr
ee(al
ongwi
thbal
ancesheetand
stat
ementofcashfl
ows)maj orfi
nanci
alst
atement
sthatr
eport
sacompany’
sfi
nanci
al
perf
ormanceoveraspecif
icaccounti
ngperi
od.

For
mul
a:

Neti
ncome=(
Tot
alr
evenue+Gai
ns)–(
Tot
alexpenses+Losses)

ABCcompany

I
ncomeSt
atement

Fort
heper
iodend2019

Rev
enues
Sal
esr
evenue 500,
000

I
nter
estr
evenue 5,
000

Sal
esofasset
s 4,
000

Tot
alr
evenue 509,
000

Expenses
Costofgoodssol
d 80,
000
Commi
ssi
onsexpense 4,
000

Of
fi
cesuppl
i
esexpense 3,
000

Of
fi
ceequi
pmentexpense 2,
000

Adv
ert
isi
ngexpense 1,
000

I
nter
estexpense 500

Lossf
rom l
awsui
t 1,
500

Tot
alexpenses&Loss 92,
000

NetI
ncome $417,
000 Ans.

CashFl
owSt
atement
:

Acashfl
owstat
ementi
sar
epor
tofhowmuchcashi
sfl
owi
ngi
nto
andoutofy
ourbusi
nessf
oraspeci
fi
cti
meperi
od.

CashFl
owSt
atement

Fort
heper
iodended2019
CashFl
owFr
om Oper
ati
ons

NetEar
nings $ 50,
000

Addi
ti
onst
ocash

Depr
eci
ati
on $ 200

Decr
easei
nA/
crecei
vabl
e $ 300

I
ncr
easei
nA/
cpay
abl
e $ 300

Subt
ract
ionf
rom cash

I
ncr
easei
ninv
ent
ory $ (
650)

NewCashFr
om Oper
ati
on $ 50,
150

CashFl
owf
rom I
nvest
ing

Equi
pment $ (
11,
000)
CashFl
owFr
om Fi
nanci
ng

Not
espay
abl
e $ 500

Cashf
lowf
or2019 $ 39,
650
Ans.

Bal
anceSheet
:
Abal ancesheetisafi
nancialstat
ementt
hatr
eport
sacompany’sasset
s,
l
i
abil
it
iesandstockholders‘equi
tyataspeci
ficpointint
ime,
andprov
idesabasi
sforcomputi
ng
r
atesofret
urnandev aluateit
scapit
alst
ructure.

ABCCompany

Bal
anceSheet

AsatDecember31,
2019

ASSETs
Cur
rentAsset

Cash 80,
000

Account
sRecei
vabl
e 4,
500

Pr
epai
dbui
l
dingr
ent 1,
500

Unexpi
redi
nsur
ance 3,
500

Suppl
i
es 250

Tot
alcur
rentasset 89,
750

Non-
cur
rentasset

Equi
pment 7,
000

Acc.Dep.–Equi
pment (
3,500)

3,
500

Tot
alAsset
s 93,
250
 Li
abi
l
iti
es&Equi
ty
Li
abi
l
iti
es

Not
espay
abl
e 4,
500

Account
spay
abl
e 1,
500

Sal
ari
espay
abl
e 2,
000

I
ncomet
axpay
abl
e 2,
000

Unear
nedser
vicer
evenue 4,
000

Tot
all
i
abi
l
iti
es 14,
000

St
ockhol
der
s’equi
ty

Capi
tal
stock 50,
000

Ret
ainedear
nings 30,
000

Tot
alst
ockhol
der
s’equi
ty 80,
000

Tot
all
i
abi
l
iti
esandst
ockhol
der
s’equi
ty 94,
000Ans.