Molly's Munchies

Balance Sheet
December 31, 2011

Assets Liabilities
Current Assets Current Liabilities
Cash $ 90,000 Accounts Payable $ 35,000
Accounts Receivable $ 80,000 Wages Payable 6,000
Less: Allowance for Taxes Payable 16,000
Doubtful Accounts (12,000) Rent Payable 8,000
Net Accounts Receivable 68,000 Interest Payable 6,500
Inventory 70,000 Current Maturities of
Prepaid Insurance 1,500 Long-Term Debt 10,000
Total Current Assets 229,500 Total Current Liabilities 81,500

Fixed Assets Long-Term Debt

Equipment 340,000 Note Payable 120,000
Less: Accumulated Total Liabilities 201,500
Depreciation (80,000)
Subtotal 260,000 Owners' Equity
Land 120,000 Common Stock $ 300,000
Net Fixed Assets 380,000 Retained Earnings 120,000
Total Owners' Equity 420,000
Other Assets
Security Deposit 12,000 Total Liabilities and
Owners' Equity $ 621,500
Total Assets $621,500
 Molly's Munchies
Income Statement
For the Year Ended December 31, 2011

Sales $ 1,200,000
Cost of Goods Sold 575,000
Gross Margin 625,000

Operating Expenses
Wage Expense $ 260,000
Depreciation Expense 60,000
Rent Expense 24,000
Office Expense 70,000
Bad Debt Expense 15,000
Insurance Expense 9,000
Total Operating Expenses 438,000
Operating Income 187,000
Other Revenues & <Expenses>
0
Interest Expense (14,000)
Net Other Revenues & <Expenses> (14,000)
Income Before Taxes 173,000
Tax Expense 52,000
Net Income $ 121,000

Earnings Per Share $ 0.47

($121,000/((180,000*3/12)+(240,000*3/12)+(300,000*6/12))
 Molly's Munchies
Statement of Cash Flows
For the Year Ended December 31, 2011

Operating Activities
Net Income $ 121,000
Adjustments to Net Income:
Add: Depreciation Expense 60,000

Changes in:
Increase in Net Accounts Receivable (33,000)
Decrease in Inventory 20,000
Decrease in Prepaid Insurance 1,500
Increase in Accounts Payable 5,000
Decrease in Wages Payable (4,000)
Increase in Rent Payable 2,000
Increase in Taxes Payable 11,000
Decrease in Interest Payable (500)
Cash Provided by Operating Activities 183,000

Investing Activities

Purchases of Equipment (50,000)

Purchase of Land (60,000)
Purchase of Security Deposit (2,000)
Cash Used for Investing Activities (112,000)

Financing Activities
Payments on Note Payable (10,000)
Issuances of Common Stock 60,000
Payment of Dividends (51,000)
Cash Used for Financing Activities (1,000)

Net Cash Flow 70,000

Beginning Cash, December 31, 2005 20,000

Ending Cash, December 31, 2006 $ 90,000

Supplemental Cash Flow Information

Cash payments for interest $ 14,500
Cash payments for income taxes 41,000
Noncash investing & financing activities
Exchanged 60,000 shares of
common stock for payment
on land 60,000
 1 C
2 B
3 B
4 A
5 D
6 B
7 C
8 C
9 A
10 B
11 C
12 D
13 D
14 A
15 B
16 B
17 E
18 A
19 D
20 E
21 B
22 C
23 D
24 E
25 B
26 A
27 C
28 D
29 D
30 A
31 A
32 D
33 C
34 D
35 D
36 B
37 B
38 B
39 B
40 B
41 B
42 D
43 C
44 C
45 A
46 A
47 D
48 A
49 C
50 E
51 E
52 C