Medieval Adventures Company

Balance Sheet
As of December 31
Assets
Cash $146.250
Account receivable $68.750
Inventory $35.000
$250.000
Equity
Common Stock $250.000
Retained earnings $0
$250.000

Income statements
January February March April May June July August September
Sales Revenues $ 55.000 $ 82.500 $ 110.000 $ 137.500 $ 165.000 $ 192.500 $ 220.000 $ 247.500 $ 275.000
Production Expense $ 35.000 $ 52.500 $ 70.000 $ 87.500 $ 105.000 $ 122.500 $ 140.000 $ 157.500 $ 175.000
Gross Profit $ 20.000 $ 30.000 $ 40.000 $ 50.000 $ 60.000 $ 70.000 $ 80.000 $ 90.000 $ 100.000

Fixed Costs of Production $ 10.000 $ 10.000 $ 10.000 $ 10.000 $ 10.000 $ 10.000 $ 10.000 $ 10.000 $ 10.000
Net Income $ 10.000 $ 20.000 $ 30.000 $ 40.000 $ 50.000 $ 60.000 $ 70.000 $ 80.000 $ 90.000

Cash Budgets
January February March April May June July August September October
Cash Inflow
Cash fowarded from
previous month $ 146.250 $ 111.250 $ 72.500 $ 30.000 $ - $ - $ - $ - $ - $ -
Collections $ 27.500 $ 41.250 $ 55.000 $ 82.500 $ 110.000 $ 137.500 $ 165.000 $ 192.500 $ 220.000 $ 247.500
Loan from Bank $ 2.500 $ 22.500 $ 12.500 $ 2.500 $ - $ - $ -
Total $ 173.750 $ 152.500 $ 127.500 $ 115.000 $ 132.500 $ 150.000 $ 167.500 $ 192.500 $ 220.000 $ 247.500

Cash Outflow
Loan returned to Bank $ - $ - $ - $ - $ 7.500 $ 17.500 $ 15.000
Expenses $ 62.500 $ 80.000 $ 97.500 $ 115.000 $ 132.500 $ 150.000 $ 167.500 $ 185.000 $ 202.500 $ 220.000
Total $ 62.500 $ 80.000 $ 97.500 $ 115.000 $ 132.500 $ 150.000 $ 167.500 $ 192.500 $ 220.000 $ 235.000
Net Cash flow $ 111.250 $ 72.500 $ 30.000 $ - $ - $ - $ - $ - $ - $ 12.500
Balance Sheet
ASSETS December January February March April May June July August September October
Cash $ 146.250 $ 111.250 $ 72.500 $ 30.000 $ - $ - $ - $ - $ - $ - $ 12.500
Accounts Recievable $ 68.750 $ 96.250 $ 137.500 $ 192.500 $ 247.500 $ 302.500 $ 357.500 $ 412.500 $ 467.500 $ 522.500 $ 577.500
Inventory $ 35.000 $ 52.500 $ 70.000 $ 87.500 $ 105.000 $ 122.500 $ 140.000 $ 157.500 $ 175.000 $ 192.500 $ 210.000
Total Assets $ 250.000 $ 260.000 $ 280.000 $ 310.000 $ 352.500 $ 425.000 $ 497.500 $ 570.000 $ 642.500 $ 715.000 $ 800.000

LIABILITIES AND
EQUITIES December January February March April May June July August September October
Loan payable $ - $ - $ - $ - $ 2.500 $ 25.000 $ 37.500 $ 40.000 $ 32.500 $ 15.000 $ -
Common Stock $ 250.000 $ 250.000 $ 250.000 $ 250.000 $ 250.000 $ 250.000 $ 250.000 $ 250.000 $ 250.000 $ 250.000 $ 250.000
Retained Earnings $ - $ 10.000 $ 30.000 $ 60.000 $ 100.000 $ 150.000 $ 210.000 $ 280.000 $ 360.000 $ 450.000 $ 550.000
Total Equity and Liabilities $ 250.000 $ 260.000 $ 280.000 $ 310.000 $ 352.500 $ 425.000 $ 497.500 $ 570.000 $ 642.500 $ 715.000 $ 800.000

Cashflow Statement
March May July
Net Income $ 30.000 $ 50.000 $ 70.000

Cash used in Operating Cost

Inventory Change $ 17.500 $ 17.500 $ 17.500
Accounts Receivable
Change $ 55.000 $ 55.000 $ 55.000
Net Change in Operating
Cost $ 42.500 $ 22.500 $ 2.500

Cash Inflow in Finance Activities

Bank Loan $ - $ 22.500 $ 2.500
Net Change $ - $ 22.500 $ 2.500

Net Change in Finance Activities

Net Cash Increase/Decrease $ 42.500 $ - $ -

Cash Balance @ Beginning $ 72.500 $ - $ -
Cash @ End $ 30.000 $ - $ -
4-138 Known:
Assets, January 1 $240.000
Assets, December 31 $230.000
Liabilities, January 1 $150.000
Share capital, December 31 $80.000
Retained earnings, December 31 $31.000
Ordinary shares sold during the year $10.000
Dividends declared during the year $13.000

Jan-01 Dec-31
Assets $240.000
Liability $150.000
Stockholders Equity $90.000 $111.000
>> share capital, December 31 +
retained earnings, December 31
Net Income
Stockholders Equity December 31st $111.000
Stockholders Equity January 1st $90.000
Gain $21.000

Add : Dividend Declared $13.000

Less : Common Stocks Sold -$10.000
Net Income $24.000

4-140 Watt Company

Income Statement
Per Year Ended December 31st, 2011.
Sales Revenue €450.000,00
- COGS -€210.000,00
Gross Profit €240.000,00
- Selling & Administrative Expenses -€75.000,00
Income From Operations €165.000,00 A
- Financial Costs -€10.000,00
Net Income €155.000,00 B
- Allocation to Non-Controlling Interest -€60.000,00
Net Income Attributable to Watt Company Shareholders €95.000,00 C
Gain on Sale of Plant Assets €45.000,00
Unrealized Gain on Available-for-Sale Financial€15.000,00
Assets €60.000,00
- Loss on Discontinued Operations -€20.000,00 €40.000,00
Comprehensive Income €135.000,00 D
- Dividends Declared & Paid -€8.000,00
Retained Earnings €127.000,00 E
4-142 Items Category
Selling expense a. Advertising
Cost of goods sold b. Depletion
Other revenue c dividend revenue
Cost of goods sold as an addition to d. freight-in
Discontinued operations e. loss on disposal
subtracted from income before income
f. income taxes on income
taxes in arriving at net income.
Other revenue g. interest income
Cost of goods sold as a subtraction
h. purchase discounts
from purchases
Subtracted from gross revenues i. sales discount
Administrative or general expenses. j. officers salaries
Selling expense k. freight-out

4-144 Categories Order

Sales 1
COGS 2
Gross Profit 3
Selling and Adminitration Expenses 4
Other Income and expenses 5
Discontinued Operations 6
Income from continuing operations 7
Income from operations 8
Income Before tax 9
Income tax 10
Net Income 11
4-150 Wang Company
Income Statement
As of December 31, 2011
Sales ¥ 1.100.000
Cost of good Sold
Inventory Jan.1 ¥ 152.000
Purchases ¥ 642.000
Purchases Discount ¥ 18.000
Net Purchases ¥ 624.000
Goods Avaliable for sale ¥ 776.000
Inventory Dec 31 ¥ 125.000
Cost of good Sold ¥ 651.000
Gross Profit ¥ 449.000
Selling Expense ¥ 128.000
General & Administrative Expenses ¥ 150.000 ¥ 278.000
Other Income & Expenses:
Devidend Revenue ¥ 8.000
Income from operations ¥ 179.000
Interest Expenses ¥ 17.000
Income before income taxes ¥ 162.000
Income taxes ¥ 48.600
Income from continuing operations ¥ 113.400
Discontinued operations
Loss on disposal, less applicable taxes of $18,000 ¥ 42.000
Net income ¥ 71.400

Wang Company
Retained Earnings Statement
As of December 31, 2011
Retained Earnings 1 Jan. ¥290.000
Add: Net Income ¥71.400
Less: Devidend Declared ¥29.000 ¥42.400
Retained Earnings 31 Dec. ¥332.400
5-131 Leong Corporation
Statement of Financial Position
As of December 31, 2012
Assets
Cash ¥30.000
Inventory ¥102.000
Supplies ¥1.860
Prepaid Advertising ¥5.000
Total Current Assets ¥138.860
Land ¥137.320
Building ¥80.400
Accumulated Depreciation -bld -¥15.000 ¥65.400
Equipment ¥40.000
Accumulated Depreciation -eq -¥10.000 ¥30.000 ¥232.720
Total Assets ¥371.580

Liabilites & Stockholder's Equity

Notes Payable ¥14.400
Taxes Payable ¥3.000
salaries Payable ¥900
Interest Payable ¥600
Total Current Liabilities ¥18.900
Long-term liabilities
Bonds Payable ¥78.000
Total Liabilities ¥96.900
Common Stock ¥60.000
Retained Earnings ¥0
Total Stockholder's Equity ¥60.000
Total Liabilities & Stockholder's Equity ¥156.900

Note:
Retained Earnings = Revenue - Expenses - Dividends
5-130 KRAUS COMPANY
STATEMENT OF FINANCIAL POSITION
As of December 31, 2012
Assets
Current assets
Cash £ 73.100
Trading securities £ 19.000
Accounts receivable £ 57.000
Less: Allowance for doubtful accounts £ 3.800 £ 53.200
Inventories £ 60.000
Equipment held for sale £ 1.000
Total current assets £ 206.300
Non-current assets
Investment
Available-for-sale securities £ 48.300
Cash surrender value £ 9.400 £ 57.700
Property, plant, and equipment
Equipment £ 135.000
Less accumulated depreciation £ 40.000 £ 95.000
Intangible assets
Patents £ 32.000
Franchises £ 9.000 £ 41.000
TOTAL ASSETS £ 400.000

Equity and Liabilities

Shareholders' equity £ 218.500
Non-current liabilities £ 100.000
Current liabilities
Accounts payable £ 79.000
Bank overdraft £ 2.500
Total Current liabilities £ 81.500
Total liabilities £ 181.500
TOTAL EQUITY AND LIABILITIES £ 400.000
5-132
Dec-31
2011 2012 Decrease/Increase
Land € 58.800 € 21.000 € 37.800
Equipment € 504.000 € 789.600 € 285.600
Inventory € 168.000 € 201.600 € 33.600
Account receivable (net) € 84.000 € 151.200 € 67.200
Cash € 42.000 € 63.000 € 21.000
TOTAL € 856.800 € 1.226.400

Share capital-ordinary € 420.000 € 487.200 € 67.200

Retained earnings € 67.200 € 205.800 € 138.600
Notes payable-long-term € 168.000 € 302.400 € 134.400
Notes payable-short-term € 67.200 € 29.400 € 37.800
Accounts payable € 50.400 € 86.000 € 35.600
Accumulated depreciation € 84.000 € 115.600 € 31.600
TOTAL € 856.800 € 1.226.400

Cash flows from operating activities

Net income to reconcile net income to net
Adjustments € 235.200
cash provided by operating activities:
Depreciation expense € 31.600
Increase in accounts receivable -€ 67.200
Increase in accounts payable € 35.600
Decrease in notes payable -€ 37.800
Increase in inventory -€ 33.600 -€ 71.400
Net cash provided by operating activities € 163.800

Cash flows from investing activities

Purchase of land € 37.800
Purchase of equipment -€ 84.000
Net cash used by investing activities -€ 46.200

Cash flows from financing activities

Paid dividends -€ 96.600
-€ 96.600

Net increase € 21.000

Cash Dec 2011 € 42.000
Cash Dec 2012 € 63.000