INCOME STATEMENT FOR THE PERIOD 1 JAN TO 30 JUNE

REVENUE $96,000.00 

COSTS AND EXPENSES
Salaries and wages $62,000.00 
Tape amortization $18,020.83 
Depreciation buildings $500.00 
Depreciation equipment $670.00 
legal fees  $2,700.00 
Advertising $3,000.00 
Interest $2,900.00 
office suplies $500.00 
software amortization $100.00 

Total costs and expenses $90,390.83 

net income  $5,609.17 

Depreciation
Land 43000
Building 5000 100
Reovation 20000 400

Tape Amortization amortization
Tapes 100000 16666.66667
New set 80% has 1 year lifetime 15000 7500
New set 20% has 3 year lifetime 3750 625
 balance sheet as of June 30, 1989

ASSETS
Cash $45,500.00 
Accounts receivables $2,200.00 
Prepaid Advertisements $3,000.00 
Tapes $13,750.00 
Total current assets $64,450.00 

Land $43,000.00 
Building and renovations $25,000.00 
less: ACC. Depn ($500.00)
Equipment $6,700.00 
less: ACC. Depn ($670.00)
Tapes $86,979.17 
Software $900.00 

TOTAL $225,859.17 

LIABILITIES AND SHAREHOLDER'S EQUITY

Accoutns payable $18,750.00 
Interest payable $2,900.00 

Total current liabilities $21,650.00 

Mortage payable $33,600.00 
Common stock $165,000.00 
retained earnings

Total shareholder's equity $165,000.00 

TOTAL  $220,250.00 
Intangible assets can be treated as current asset
 INCOME STATEMENT FOR THE PERIOD ENDING 
DEC 31, 2018 BALANE SHEET AS OF DEC 31, 201
Liabilities and shareholder's equity 
paid up capital
Sales  $754,500.00 Retained earings 

Less: Expenses Total shareholder's funds
Cost of materials TOTAL 
manufacturing costs $350,000.00
corporate expenses  $80,000.00 Assets 
Prototype  $23,750.00
Advertising $22,500.00 Cash
Legal fees  $7,500.00 Accounts receivables
Inventory 
EBDITA  $747,000.00
Total current assets
Depreciation $3,125.00
Amortization Mahinery Gross
EBIT $743,875.00 Less: acc. Depreciation
interest Net block
EBT $743,875.00 patent
Ignore taxes 
TOTAL 

ALTERNATE CALCULATIONS WITH CAPITALISING PROTOTYPE, LEGAL FEES 
INCOME STATEMENT FOR THE PERIOD ENDING 
DEC 31, 2018 BALANE SHEET AS OF DEC 31, 201
Liabilities and sharehodler's equity 
paid up capital
Sales  $754,000.00 Retained earings 
Less: Expenses Total shareholder's funds
Cost of materials $195,000.00 TOTAL 
manufacturing costs $350,000.00
corporate expenses  $80,000.00 Assets 

Advertising $22,500.00 $647,500.00 Cash

Accounts receivables
Inventory 
EBDITA  $106,500.00
Total current assets
Depreciation $11,812.50
Amortization $16,250.00 Mahinery Gross
EBIT $90,250.00 Less: acc. Depreciation
interest Net block
EBT $90,250.00 patent
Prototype
Legal fees 
Ignore taxes 
TOTAL 
ALANE SHEET AS OF DEC 31, 2018 CASH RECEIPTS AND PAYMENTS 
Liabilities and shareholder's equity  SL.NO DETAILS RECEIPTS
$500,000.00 1 Paid up capital  $500,000.00
$754,500.00 2 legal fees
3 machinery
$1,254,500.00 4 purchase of raw material
$1,254,500.00 5 prototype
6 cash sales and collections $685,000.00
Assets  7 additional purchase of RM
8 Advertising
$1,185,000.00 9 manufacturing costs
$69,500.00 10 corporate expenses
$55,000.00 11 machinery additions
12 borrowings $50,000.00
$1,309,500.00 $1,309,500.00 13 repaymento of borrowings
14 interest
$62,500.00 15 Depreciation
$3,125.00 16
$59,375.00 $59,375.00 17
$1,250.00 18
$181,250.00 19
$1,435,750.00 20

PROTOTYPE, LEGAL FEES 

ALANE SHEET AS OF DEC 31, 2018
Liabilities and sharehodler's equity 
$500,000.00
Assets 

$0.00 $0.00

$236,250.00
$16,250.00
$220,000.00 $220,000.00
$108,750.00
$22,500.00
$3,750.00

$220,000.00
D PAYMENTS 
PAYMENTS BALANCE 
$500,000.00
$7,500.00 $492,500.00
$62,500.00 $430,000.00
$75,000.00 $355,000.00
$23,750.00 $331,250.00
$1,016,250.00
$175,000.00 $841,250.00
$22,500.00 $818,750.00
$350,000.00 $468,750.00
$80,000.00 $388,750.00
$150,000.00 $238,750.00
$288,750.00
$50,000.00 $238,750.00
$750.00 $238,000.00
$238,000.00
$238,000.00
$238,000.00
$238,000.00
$238,000.00
$238,000.00