Less : Sales return Net sales 3500000 38,00,000 5,250,000 Less : COGS Purchases 6,64,000 8,00,000 10,00,000 Gross profit 2836000 30,00,000 42,50,000 Less : operating expenses Salaries & wages 2,460,000 24,60,000 25,00,000 Advertising 1,50,000 180,000 1,00,000 Maintenance 40000 50,000 60,000 Depreciation 220000 220000 Office expenses 15,000 20,000 30,000 Miscellaneous 15,000 20,000 25,000 Telephone 10,000 12,000 15,000 Leased rent 4,20,000 4,20,000 4,20,000 Packaging cost 40,000 80,000 1,00,000 Total operating cost 3,370,000 3,242,000 3,250,000 EBIT -534000 -242,000 1,000,000 Less:Interest expense 1000000 1,000,000 1,000,000 Net profit before tax -1534000 -1,242,000 0 Less: tax (30%) Net profit -2,042,000 0 Particulars year 1 year 1 year 2 year2 year3 year3 Assets Fixed assets Machinery 10000000 10000000 10000000 Less : Depreciation expenses 500000 1000000 1500000 9500000 9000000 8500000 Building 4000000 4000000 4000000 Facility 3000000 3000000 3000000 Office unit 500000 500000 500000 Furniture 500000 500000 500000 Less : depreciation expenses 20000 40000 60000 480000 460000 440000 Current assets Inventory 928800 Cash 3000000 Total Assests 21408800
Liabilities and owner’s equity
Current liabilities 10000000 Long term debt 10000000 Total liabilities 20000000 Retained earning -2,334,000 Account payable 20,00,000 Outstanding salaries and wages 1,00,000 Leased contract 1,00,000 current borrowing 1542800 Total liabilities & Owner’s Equity