Reliable Auto Repair

Income Statement for the period ending October 31, 20X9

Sales 520,000

Cost of Sales
Materials, Parts 170,000
Labor 250,000

Total Cost of Sales 420,000

Gross Profit $100,000

Operating Expenses
Office salaries 40,000
Depreciation 20,000
Insurance 12,000
Building lease 10,000
Marketing, advertising 4,000
Repair and maintenance 4,000
Total Operating Expenses 90,000

Net Income $10,000

Reliable Auto Repair
Balance Sheet as of October 31, 20X9

Assets $ Liabilities
Current assets Current liabilities
Cash 40,000 Accounts payable
Accounts receivable 70,000 Current portion- long term debt
Inventory 30,000 Total current liabilities
Total current assets 140,000
Long-term liabilities
Long-term assets Bank loan
Machinery 5,000 Total long-term liabilities
Equipment 40,000
Total long-term assets 45,000 Total Liabilities

Total Assets 185,000

 $ Equity $
Owner's equity 25,000
30,000 Retained earnings 10,000
20,000
50,000 Total Equity 35,000

Total Liabilities and Equity 185,000

100,000
ies 100,000

150,000
Reliable Auto Repair
Statement of Cash Flows for period ended October 31, 20

Cash flows from operations Cash flows from financing

Customer payments 500,000 Loan payments
Material/ part purchases - 160,000
Payroll costs - 210,000 Total cash flows from financing
Other payments - 88,000
Net change in cash
Total cash flows from operations 42,000 Beginning cash balance
Ending cash balance
Cash flows from investing
Equipment purchase - 10,000
-
Total cash flows from investing - 10,000
flows from financing
payments - 15,000
-
cash flows from financing - 15,000

hange in cash 17,000

ning cash balance 23,000
ng cash balance 40,000