Transactions Assets = Liabilities

1a Hynes’ investment + Patent $120,000

1b Other investors + Cash 80,000
2 Incorporation costs - Cash $2,500
-Cash $85,000
3 Equipment purchase
+ Equipment 85,000
4 Redesign costs - Cash $25,000
+ Inventory $212,100
5 Component parts purchase
- Cash 212,100
Bank loan + Cash $30,000 +Bank loan $30,000
6 Bank loan repaid - Cash 30,000 - Bank loan 30, 000
Loan interest - Cash 500
7 Manufacturing payroll - Cash $145,000
8 Other manufacturing costs - Cash 62,000
9 Selling general and administr - Cash $63,000
10 Ending inventory (cost of go - Inventory $197,000
11 Sales + Cash $598,500
12 Incorporation and redesign co See 2 and 4
13 Depreciation - Equipment $8,500
14 Patent amortization - Patent $20,000

15 Ending work-in-progress and See 5, 7, 8, 10 and 13

16 Dividends - Cash $5,000
17 Income Taxes +Taxes payable $22,500
270000
 Equity
Assets Liabilities + O/E
+ Common Stock $120,000
+ Common Stock 80,000 Current Assets Current Liabilities
- Retained earnings $2,500

- Retained earnings $25,000

Total Current Assets 0 Total Current Liabilities

- Retained earnings $500
- Retained earnings $145,000 Non-Current Assets Non-Current Liabilities
- Retained earnings $62,000
- Retained earnings $63,000
- Retained earnings $197,000
+ Retained earnings $598,500 Total Non-Current Liabiliti
Owner's Equity
- Retained earnings $8,500
- Retained earnings $20,000

- Retained earnings $5,000 Total Non-Current Assets 0 Total Owner's Equity

- Retained earnings $22,500 Total Assets 0 Total Liability + O/E

-270000 0
Liabilities + O/E Revenue

Expenses
I
D
D
I
0 D
I
I
D
EBIT 0
Interest
0 Tax
Owner's Equity (%) Net Income 0
#DIV/0!
#DIV/0!

0
0
Sales 0

COGS(D) 0

Gross Profit (Margin) 0

EBIT (Operating Profit) 0

Net Income (PAT) 0

 B/S of Dispensers of California Inc. As on XX-XX-XXXX
Assets Liabilities + O/E Revenue
Sales
Current Assets Current Liabilities
Cash 78400 Short Term Loan 30000
Inventory (Components) 15100 STM Paid off -30000
Expenses
Deferred Tax 22500 I Incorporation Expense
I Labour & Development
D Mfg. Payroll
D Other Mfg. Cost
Total Current Assets 93500 Total Current Liabilities 22500 I SGNA/SG&A
D Inventory (Components
Non-Current Assets Non-Current Liabilities I Patent (Charged)
Patent 100000 I Depreciation
Equipment 76500 EBIT
Interest
Total Non-Current Liabilities 0 Tax
Owner's Equity Net Income
Hyne's Funds 120000 60%
Investors' 80000 40%
Retained Earnings 47500
Cash Dividend = 5000

Total Non-Current Assets 176500 Total Owner's Equity 247500 *R&D

Total Assets 270000 Total Liability + O/E 270000
Patent
0 WC
WIP
 Sales 598500
598500
D= COGS 404000

Gross Profit (Margin) 194500

2500
25000
145000 Patent (Charged) 20000
62000
63000 Incorporation Expense 2500
197000 Labour & Development 25000
20000 SGNA/SG&A 63000
8500 Depreciation 8500
75500 EBIT (Operating Profit) 75500
500 Interest 500
22500 Tax 22500
52500 Net Income (PAT) 52500

16666.67
 B/S of Dispensers of California Inc. As on XX-XX-XXXX P&L / I/S
Assets Liabilities + O/E Revenue
Sales
Current Assets Current Liabilities
Cash 78400 Short Term Loan 30000
Component / Inventory 15100 Short Term Loan Paid Off -30000
Deferred Tax Payment 22500 Expenses
I Incorporation Exp
I Redesign
D Mfg. Payroll
D Other Mfg. Cost
Total Current Assets 93500 Total Current Liabilities 22500 I SGNA / SG&A
D Component
Non-Current Assets Non-Current Liabilities I Patent (Written Off / C
Patent 100000 I Depreciation
Equipment 76500 EBIT (Operating Profit)
Interest
Total Non-Current Liabilities 0 Tax
Owner's Equity % OwnershNet Income
Hyne's 120000 60%
Investor's Capital 80000 40% 1
2
Retained Earnings / P&L 47500
Cash Dividend = 5000 0 1
Total Non-Current Assets 176500 Total Owner's Equity 247500 2
Total Assets 270000 Total Liability + O/E 270000

0
P&L / I/S
Sales 598500
598500
D= COGS 404000

Gross Profit (Margin) 194500

2500 Incorporation Exp 2500

25000 Redesign 25000
145000 SGNA / SG&A 63000
62000 Patent (Written Off / Cha 20000
63000 Depreciation 8500
197000
20000
8500
75500 EBIT (Operating Profit) 75500
500 Interest 500
22500 Tax 22500
52500 Net Income (PAT) 52500

1/5
GAAP

R&D Asset
R&D Expense

16666.67