Winter Park Web Design
Income Statements
For the Years 2010 and 2011
2011 2010
Sales $186,946 $150,000
Cost of Goods Sold $ 102,819 $82,500
Gross Profit $ 84,127 $67,500
Depreciation Expense $ 6,628 $3,098
Selling & Admin Expense 550 $480
Net Operating Income $76,950 $63,923
Interest Expense $680 $540
Earnings Before Taxes $76,270 $63,383
Earnings $28,219.72 $22,183.88
Net Income $48,050 $41,199
Notes:
Tax Rate 37.0% 35.0%
Shares Outstanding
Earnings per Share
Dividends per Share $6.00 $6.00
Addition to RE per Share
Winter Park Web Design
Balance Sheets
For the Years 2010 and 2011
2011 2010
Cash $10,150 $7,500
Accounts receivable $12,504 $11,000
Inventories $8,607 $7,550
Total Current Assets $33,272 $28,060
Gross fixed assets $29,020 $8,850
Accumulated depreciation $7,230 $3,700
Net Fixed Assets $21,790 $5,150
Total assets $55,062 $33,210
Accounts payable $8,201 $6,851
Notes payable – $3,000
Total Current Liabilities – $9,851
Long-term debt $7,115 –
Total Liabilities $7,115 $9,851
Common stock $5,000 –
Additional paid in capital – $500
Retained earnings – $10,234
Total Equity – –
Total Liabilities & Equity – –
Notes:
Shares Outstanding 5,000
For the Year 2011
Cash Flows from Operations
Net Income
Depreciation Expense $3,530
Change in Accounts Receivable $(1,504)
Change in Inventories $(1,057)
Change in Accounts Payable $1,350
Total Cash Flows from Operations –
Cash Flows from Investing
Change in fixed assets $(20,170)
Total Cash Flows from Investing $(20,170)
Cash Flows from Financing
Change in Notes Payable $(1,000)
Change in Long-Term Debt $1,500
Change in Common Stock $ –
Change in Paid-In Capital $ –
Cash Dividends
Total Cash Flows from Financing –
Net Change in Cash Balance
Check answer against Balance Sheet
Beginning Cash From Balance Sheet
Ending Cash From Balance Sheet
Net Change in Cash Balance