BFIN400 – Financial Modeling Graded Assignment One Spring 2020

Pal Pot Inc. reported the data presented below:

Pal Pot Inc. Pal Pot Inc.

Balance Sheet Balance Sheet
For the Year Ended Dec. 31,2016 and
2017 For the Year Ended December 31, 2017
  12/31/1 12/31/17 12/31/16 12/31/17
6  
Cash 15,000 65,000 Sales 102,000 120,000
A/R 37,000 33,000 Cost of goods sold 34,000 40,000
Inventory 25,000 43,000 Gross Profit 68,000 80,000
Prepaid Expenses 3,000 6,000 Salaries & other 31,45
operating expenses 0 37,000
Total Cur. Assets 80,000 147,000 Bad debt expense 3,400 4,000
PPE 215,000 240,000 Dep. & Amort. 9,350 11,000
Accum. Dep. 80,000 91,000 EBIT 23,800 28,000
Net PPE 135,000 149,000 Interest expense 2,250 3,000
Total Assets 215,000 296,000 EBT 21,550 25,000
    Taxes exp. (42%) 9,051 10,500
Accounts Payable 23,000 31,000 Net income 12,499 14,500
Salaries Payable 2,000 9,000
Interest payable 3,500 15,000
TCL 28,500 55,000
Long term liabilities 25,000 15,000
Common stock 100,000 150,000
Retained Earnings 61,500 76,000
TL&E 215,000 296,000

# of shares 10,000 15,000

outstanding
Problem One: (20%)

Enter the above statements into an excel file on two separate sheets using formulas and name
them “Balance Sheet” and “Income Statement”.

Problem Two: (40%)

Use the given income statements and balance sheets from Problem One to prepare common size
statements on new sheets (Income statement and Balance sheet) for years 2016 and 2017.

Problem Three: (40%)

Use the given income statements and balance sheets from Problem One to prepare cash flow
statement for 2017 on a new sheet and name it “statement of Cash flow”.