Sales 3 3,960,000

Less: Operating Cost including Depreciation 4 3,465,000

Earnings Before Income and Taxes 495,000
Less: interest Expense 111,375
Earnings Before Taxes 383,625
Less: Taxes 153,450
Net Income 230,175
Less: Dividends 138,105
Additional to Retained Earnings 92,070
Daoming Inc’s
Income Statement

For the end year ended December 31, 2020

Daoming Inc’s
Statement of Financial Position

For the end year ended December 31, 2020

ASSETS

Current Assets
Cash 6 198,000
Accounts Receivable 7 396,000
Inventories 792,000
Total Current Assets 1,386,000
Fixed Assets 1,584,000
Total Assets 2,970,000

LIABILITIES AND OWNERS’ EQUITY

Current Liabilities:
Notes Payable 1 728,000
Total Current Liabilities 728,000
Long Term Debt 2 163,000
Total Liabilities 891,000
Owners’ Equity:
Total Stockholders’ Equity:
Common stock 1,782,930
Retained Earnings 296,070 2,079,000
Total Liabilities and Owners’ Equity 2,970,000
Notes:

1. Forecasted Notes Payable for 2020

Notes Payable for 2019 560,000

Add: Increase in Notes Payable 168,000
Forecasted Notes Payable for 2020 728,000

2. Forecasted Long Term Debts for 2020

Long Term Debt for 2019 891,000

Less: Notes Payable 728,000
Forecasted Long Term Debts for 2020 163,000

3. Sales for 2020

Sales for 2019 3,600,000

Multiply by: Increase In Sales 2019 10%
Total 360,000
Add: Sales for 2019 3,600,000
Forecasted Sales for 2020 3,960,000

4. Forecasted Operating costs including Depreciation

Sales for 2020 3,960,000

Multiply by: Operating Cost/ Sales Ration 87.5%
Forecasted Operating costs including 3,465,000
Depreciation

5. Forecasted Total Assets for 2020

Assets of 2019 2,700,000

Add: Increase in assets 270,000
Forecasted Total Assets for 2020 2,970,000

6. Forecasted Cash for 2020

Cash of 2019 180,000

Add: Increase in Cash 18,000
Cash for 2020 198,000

7. Forecasted receivables for 2020

Receivables of 2019 360,000

Add: Increase in receivables (360,000*.1) 36,000

Forecasted receivables for 2020 396,000