Balance Sheet of Dispensers of California, Inc as on _____(year end)

Sources of Funds
Equity captial 200000
Bank Loan 0 Income Statement of Dispensers of California, Inc for the year end
Retained earnings (Revenue-Expenses) 47500 Revenue
Income tax Payable 22500 Cash sales 598500

270000 598500
Application of Funds Expenses:
Cash in bank 78400 Payroll cost 145000
Patents 100000 other manufacturing cost 62000
Incorporation Cost (preliminary expens 0 selling, general and admin cost 63000
Equipment 76500 Material cost (component parts) 197000
Designing Work (Asset) 0 Designing cost written off 25000
Inventory (component parts) 15100 Incorporation cost written off 2500
Depreciation on equipment 8500
amortization 20000
Interest on Loan 500
Income tax 22500
Dividend 5000
270000 551000

Accounting Notes:
1. it is presumed that equipment is purchased for casNet Income After Tax and Dividend(Re 47500
2. The inventory used = 212100-15100=197000
3. All the incorporation cost and design cost has been writeen off in first year only as per mention in the case.
4. Depreciation on equipment is based on 10 years and amortization of patents value is based on 6 years as mentioned in the case.
ned in the case.