ABC Manufacturing Company

Income Statements
For the year ended Dec 31, 2010 and 2011
(in thousands of birr)

2011 2010
Net Sales Dollar 120,000 Dollar 110,000
Cost of goods sold 90,000 83,000
Gross Profit 30,000 27,000
Operating Expenses:
2011 2010
Selling expenses 5,000 4,800
General and administrative expenses 8,000 7,600
Depreciation expense 1,100 800
Lease Payments 1,650 1,600

Total operating expenses 15,750 14,800

Earnings before interest and taxes 14,250 12,200
Interest expenses:
Interest on bank notes 550 700
Interest on Other debt 3,600 3,960
Total interest expenses 4,150 4,660
Earnings before taxes 10,100 7,450
Income taxes (34%) 3,434 2,564
Net Income 6,666 4,976
 ABC Manufacturing Company
Comparative Balance Sheet
Dec 31, 2010 and 2011
2011 2010
Current Assets:
Cash 2,500 3,000
Marketable securities 1,000 1,300
Accounts receivable 16,000 12,000
Inventories 20,500 18,700
Total current assets 40,000 35,000
Fixed Assets:
Land and buildings 28,700 24,200
Machinery and equipment 31,600 29,000
Total fixed assets 60,300 53,200
Less accumulated depreciation 18,300 17,200
Net fixed assets 42,000 36,000
Total assets 82,000 71,000
Liabilities and shareholders' equity
Current liabilities
Accounts payable 7,200 6,000
Notes payable 10% bank 5,500 7,000
Accrued liabilities 900 700
Current portion of long-term debt 3,000 3,000
Other current liabilities 1,400 1,200
Total current liabilities 18,000 17,900
Long-term liabilities
Long term debt-12% mortgage bond 27,000 30,000
Total liabilities 45,000 47,900

Shareholders' equity
1 Common stock, 5Dollar par, 2,000,000
Shares authorized; 1,300,000 shares
outstanding in 2011 and 1,000,000
shares outstanding in 2010 6,500 5,000
2 Capital in excess of par 14,000 5,350
3 Retained earnings 16,500 12,750
Total shareholders' equity 37,000 23,100
Total liabilities & shareholder equity 82,000 71,000