Practice Exercise - Cairo Strictly Confidential

Table of Contents

Cairo Trading Balance Sheet

© 2015 to 2022 CFI Education Inc.

This Excel model is for educational purposes only and should not be used for any other reason. All content is Copyright material of CFI Education Inc.
All rights reserved. The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected
under international copyright and trademark laws. No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any
form by any means, including photocopying, recording, or other electronic or mechanical methods, without prior written permission of the publisher,
except in the case of certain noncommercial uses permitted by copyright law.
https://corporatefinanceinstitute.com/
 Construct a Balance Sheet for Cairo Trading Inc.

You have been asked to build a Balance Sheet for a company called Cairo Trading Inc. that has undertaken the following transactions

1. Issued common shares of 300.

2. Bought equipment for 200 with cash.
3. Bought inventory of 50. 30 of this was paid in cash. The remainder is outstanding at the balance sheet date.
4. Sold 50% of the inventory for 75. 65 of this had been received in cash at the balance sheet date.
5. Paid a cash operating expense of 5.

Balance Sheet

ASSETS TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

Current Assets Current Liabilities

Cash 135 Accounts Payable 20
Accounts Receivable 5 Total Current Liabilties 20
Inventory 25
Total Current Assets 165 Non-Current Liabilities
Long-Term Debt –
Non-Current Assets Total Non-Current Liabilities –
Property, Plant & Equipment 200
Total Non-Current Assets 200 Shareholders' Equity
Common Shares 300
Retained Earnings
Revenue 75
Cost of Sales (25)
Other Operating Expenses (5)
Total Retained Earnings 45
Total Shareholders' Equity 345

Total Assets 365 Total Liabilities & Equity 365

Total Assets 365

Total Liabilities & Equity 365
Difference –

Practice Exercise - Cairo Page 3 of 3