Sr No Year

1 0.00
2 0.00

3 0.00

4 1.00
5 1.00
6 0.00
7 1.00
8 1.00
9 1.00

10 1.00
11 1.00
 Business Activity
you started a business with 1cr as equity and 50 lacs as loan @ 13%
P.A at year 0 The loans principal repayment needs to be ignored
You bought Equity mutual funds worth 25 Lacs at year 0
You bought a machinery at year 0, cost of 15 lacs with a usefull life
10 years and salvage value of 0. The asset needs to be amortized
yearly
You paid advance rent of 12 lacs anually at year 0, which includes 9
lacs of rent for year 1 and 3 lacs as security deposit
You receive 30 lacs as consulting income for 2 years at year 1
You buy 50 telivisons at a cost of 25 thousand from wholesales at
year 0 .50% paid in cash year 0 and 50% to paid next year
Spent 30 thousand on marketing expenses at year 1
Sell 25 telivisions at 50 thousand each year 1
Hire three workers at a salary of 12 lacs in total at year 1 to be paid
in 70% in cash and 30% to be paid next year
The equity mutual funds has made a loss of 3 lacs on account of
recent market downturn at year 1
Tax rate of 30% to be assumed
INCOME STATEMENT
BALANCE SHEET CASH FLOW STATEMENT
Income Statement Balance Sheet
Particulars Amount Liabilities + Sh Equity
Particulars Amount

Revenues 300000 Capital 9050000

Unearned Revenue 550000
COGS -625000 Accounts Payable 625000
Advt. Exp -30000 Retained Earnings -390000
Salary Expense -360000 Loan from Bank (Borrow -5000000
Depreciation 0 Non cash Salary payable -360000
Rent Expense 75000 Interest Payable -650000
Interest Expense
Other Income 250000 Non Cash
Profit / (Loss) -390000 Total Liabilities & Equity 3,825,000.00
Balance Sheet Cash Flow Statement
Assets
Particulars Amount Net Income -390000
Depreciatation 0
Cash 510000 Gain in Non Operating Act
Investments 2200000 Changes in Working Capital
Office Equipment 1500000 Inventory
Deposit 300000 Accounts Receivable
Advance Rent 900000 Unearned Revenue
Inventory -625000 Accounts Payable
Accounts Receivable 250000 Salary payable
Interest Payable
Operations Cash Flow
Total Assets 5,035,000.00
Puchase of Equipments
Check 1,210,000.00 Purchase of Invesmtnet
Deposit
Gain in Non Operating Act
Investing Cash Flow

Equity Raised
Debt Raised
Financing Cash Flow

Net Change in Cash

Cash BOP
Cash - EOP
Three Statements
Income Statement Balance Sheet
Particulars Amount Liabilities + Sh Equity
Particulars Amount

Revenues 1250000 Capital 10000000

Unearned Revenue 300000
COGS -950000 Accounts Payable 625000
Advt. Exp -30000 Retained Earnings 148333
Salary Expense 70000 Loan from Bank (Borrowing) -5000000
Depreciation -12500 Non cash Salary payable -360000
Rent Expense -75000 Interest Payable -54166.6666667
Interest Expense -54166.66667
Other Income -50000 Non Cash
Profit / (Loss) 148333 Total Liabilities & Equity 5,659,166.67
Balance Sheet Cash Flow Statement
Assets
Particulars Amount Net Income 148333.333333
Depreciatation -12500
Cash -20000 Gain in Non Operating Act -300000
Investments 2200000 Changes in Working Capital
Office Equipment 1487500 Inventory 625000
Deposit 300000 Accounts Receivable 0
Advance Rent 1200000 Unearned Revenue 300000
Inventory 625000 Accounts Payable 625000
Accounts Receivable Salary payable -360000
Interest Payable -54166.6666667
Operations Cash Flow 971666.666667
Total Assets 5,792,500.00
Puchase of Equipments 1487500
Check 133,333.33 Purchase of Invesmtnet 2200000
Deposit 300000
Gain in Non Operating Act
Investing Cash Flow 3987500

Equity Raised 10000000

Debt Raised -5000000
Financing Cash Flow 5000000

Net Change in Cash 9,959,166.67

Cash BOP 0
Cash - EOP 9,959,166.67
Three Statements
Income Statement Balance Sheet
Particulars Amount Liabilities + Sh Equity
Particulars Amount

Revenues 1250000 Capital 10000000

Unearned Revenue 300000
COGS -1250000 Accounts Payable
Advt. Exp -30000 Retained Earnings -33333.3333333
Salary Expense -70000 Loan from Bank (Borrow 5000000
Depreciation -12500 Non cash Salary payable -360000
Rent Expense -75000 Interest Payable -54166.6666667
Interest Expense 54166.66667
Other Income 100000 Non Cash
Profit / (Loss) -33333.33333 Total Liabilities & Equity 14,852,500.00
Balance Sheet Cash Flow Statement
Assets
Particulars Amount Net Income -33333.333333
Depreciatation -12500
Cash 10154166.66667 Gain in Non Operating Act
Investments 2200000 Changes in Working Capital
Office Equipment 1500000 Inventory 625000
Deposit 300000 Accounts Receivable 0
Advance Rent 1200000 Unearned Revenue 300000
Inventory 625000 Accounts Payable 0
Accounts Receivable Salary payable -360000
Interest Payable
Operations Cash Flow 565000
Total Assets 15,979,166.67
Puchase of Equipments 1500000
Check 1,126,666.67 Purchase of Invesmtnet 2200000
Deposit 300000
Gain in Non Operating Act
Investing Cash Flow 4000000

Equity Raised 10000000

Debt Raised 5000000
Financing Cash Flow 15000000

Net Change in Cash 19565000

Cash BOP
Cash - EOP
Three Statements