Case Study: Basic Financial Statement

Mr. X (Ola driver) planning to buy a new taxi car for Rs. 5 lacs. Assuming car total life equal to 5 years
and salvage value nil, depreciate the asset using Straight Line Method. To buy this Mr. X has taken a
loan of Rs. 2 lacs from bank at ROI 10% p.a. The loan to be repaid in four equal principal repayments
of Rs. 50,000 each.
Particulars Units Year 1 Remarks
KM car driven Km p.a. 60,000 Thereafter, expected to grow at 10%
Revenue share per km from Ola Rs./km 10 Thereafter, expected to grow at 5%
Petrol expense Rs./km 4 Thereafter, expected to grow at 4%
Maintenance expenses Rs. p.a. 50,000 Thereafter, expected to grow at 10%
MCD charges Rs. p.a. 70,000 Thereafter, expected to grow at 2%
Payment released from Ola Months 1 One-month debtor period
Income tax rate % 10%

You have to prepared financial statement of Mr. X for five years.