XRS Softwares Pvt Ltd Model

XRS is a software provision firm - they help set up their custom softwares in a lot of different companies!
For eg - their last client was Starbucks, and they helped set up Starbucks' billing software.

Based on the below information for 2021, prepare XRS' financial statements (including ledgers, P/L, BS and Cash Flow State
appropriate notes and determine if XRS is a profitable enterprise - this determination should only be based on XRS' 2021 fi

Revenue
Revenus from Building Softwares - 1L per month
Revenues from Maintenance and Repair - 25K/ Month

Expenses
Hardware expenses - 3500/ month
Engineer Salaries - 60k/ month
Monthly subscriptions for coding machinery - 8K/ month
Rent - 2500/ month
Electricity -2k/ month
Interest -

They have a loan of 20L o/s at the beginning of the year, they will repay 7500 in principal every month, and 8% interest is p

Fixed Assets (WDV)

Computers (3) - 50K - 5% per month

Software they have purchased - 1L - 6% per month

Payment Schedule
Software Building

60% on completion of the project

40% within 3 months.

Maintenance
100% on completion of the project.

Working Capital - Gross and Net Capital

Last 3 months of expenses are always payable at the end of the year.

Find out
1 if the company is profitable,
2 Draw up their different ledgers, and use explosion infrastructure to make changes
3 Calculate gross and net working capital for this company!
Making Changes

1 Change Interest to 0.1%

2 All revenues are received when services are rendered - no receivables
3
P/L, BS and Cash Flow Statement) along with
y be based on XRS' 2021 financial statements.

month, and 8% interest is payable on this loan yearly

Revenue Items Jan Feb Mar Apr May Jun
Building of Softwares 110,000 110,000 110,000 110,000 110,000 110,000
Maintenance and Repairs 25,000 25,000 25,000 25,000 25,000 25,000
135,000 135,000 135,000 135,000 135,000 135,000

Receivables

Software - 40% of last 3 months - - - - - -

Maintnenace - none - - - - - -
Jul Aug Sep Oct Nov Dec Total
110,000 110,000 110,000 110,000 110,000 110,000 1,320,000
25,000 25,000 25,000 25,000 25,000 25,000 300,000
135,000 135,000 135,000 135,000 135,000 135,000 1,620,000

- - - - - - -
- - - - - - -
Expense Items Jan Feb Mar Apr May Jun Jul
Hardware 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Engineer Salary 60,000 60,000 60,000 60,000 60,000 60,000 60,000
Monthly Subscription 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Rent 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Electricity 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Depreciation 13,500 12,765 12,070 11,414 10,793 10,207 9,652

Interest 200 199 199 198 197 196 196

Gross Total Expenses 89,700 88,964 88,269 87,612 86,990 86,403 85,848

Creditors Sheet

Three Months Expenses - - - - - - -

Aug Sep Oct Nov Dec Total
3,500 3,500 3,500 3,500 3,500 42,000
60,000 60,000 60,000 60,000 60,000 720,000
8,000 8,000 8,000 8,000 8,000 96,000
2,500 2,500 2,500 2,500 2,500 30,000
2,000 2,000 2,000 2,000 2,000 24,000
912,000

9,128 8,633 8,165 7,722 7,304 121,354

195 194 193 193 192 2,351

85,323 84,827 84,358 83,915 83,496 1,035,704

- - 76,000 76,000 76,000 228,000

Computers Jan Feb Mar Apr May Jun Jul
Opening Values 150,000 142,500 135,375 128,606 122,176 116,067 110,264
Dep for the month 7,500 7,125 6,769 6,430 6,109 5,803 5,513
Closing Value 142,500 135,375 128,606 122,176 116,067 110,264 104,751

Softwares Jan Feb Mar Apr May Jun Jul

Opening Values 100,000 94,000 88,360 83,058 78,075 73,390 68,987
Dep for the month 6,000 5,640 5,302 4,984 4,684 4,403 4,139
Closing Value 94,000 88,360 83,058 78,075 73,390 68,987 64,848

Total Dep 13,500 12,765 12,070 11,414 10,793 10,207 9,652

Total Closing Values
Aug Sep Oct Nov Dec Total
104,751 99,513 94,537 89,811 85,320
5,238 4,976 4,727 4,491 4,266 68,946
99,513 94,537 89,811 85,320 81,054 81,054

Aug Sep Oct Nov Dec Total

64,848 60,957 57,299 53,862 50,630
3,891 3,657 3,438 3,232 3,038 52,408
60,957 57,299 53,862 50,630 47,592 47,592

9,128 8,633 8,165 7,722 7,304 121,354

128,646
Loan Sch Jan Feb Mar Apr May Jun Jul
Opening Loan 2,000,000 1,992,500 1,985,000 1,977,500 1,970,000 1,962,500 1,955,000
Int for the Month 200 199 199 198 197 196 196
Principal Repaid 7,500 7,500 7,500 7,500 7,500 7,500 7,500
Total Repayments 7,700 7,699 7,699 7,698 7,697 7,696 7,696
Closing Principal 1,992,500 1,985,000 1,977,500 1,970,000 1,962,500 1,955,000 1,947,500
Aug Sep Oct Nov Dec Total
1,947,500 1,940,000 1,932,500 1,925,000 1,917,500
195 194 193 193 192 2,351
7,500 7,500 7,500 7,500 7,500
7,695 7,694 7,693 7,693 7,692
1,940,000 1,932,500 1,925,000 1,917,500 1,910,000 1,910,000
 Jan Feb Mar Apr May Jun Jul
Revenues 135,000 135,000 135,000 135,000 135,000 135,000 135,000
Expense 89,700 88,964 88,269 87,612 86,990 86,403 85,848
Profit/ Loss 45,300 46,036 46,731 47,388 48,010 48,597 49,152

Control Checks
Revenue True True True True True True True
Expenses True True True True True True True
Aug Sep Oct Nov Dec Total Control Checks
135,000 135,000 135,000 135,000 135,000 1,620,000 True
85,323 84,827 84,358 83,915 83,496 1,035,704 True
49,677 50,173 50,642 51,085 51,504 584,296

True True True True True True

True True True True True True
Services or Revenue Ledger

Revenue from Service - Software 1,320,000

Revenue from Maintenance 300,000
1,620,000
Direct Expenses Ledger

Hardware 42,000
Engineer Salary 720,000
Monthly Subscription 96,000
858,000
Direct Expenses Ledger

Rent 30,000
Electricity 24,000
Depreciation 121,354
Interest 2,351
177,704
Profit and Loss Account

Revenues 1,620,000
Direct Expenses 858,000

Gross Profits 762,000

Indirect Expenses before Dep and Interest 54,000

Earnings Before Depr, Int and Tax 708,000

Depreciation 121,354

Earning Before Interest and Tax 586,646

Interest 2,351

Net Profits 584,296

Capital and Liabilities

Capital 100,000
Revenues and Surplus 584,296

Liabilities
Long Term Liabilities 1,910,000
Short Term Liabilities 228,000

Total Capital and Liab 2,822,296

Assets

Fixed Assets
Computers 81,054
Software 47,592

Receivables -
Cash 575,600 Balancing Fig
704,246
 Gross Net
Current Assets 575,600 575,600
Current Liabilities - 228,000

Total Working Capital 575,600 347,600