Income Statement Balance sheet Change Cash from operating activities

Revenue 2181250 31-Dec-05 31-Dec-06 PBT 163600

Cost of merchandise sold 1110600 Current assets Depreciation (+) 20000
Gross margin 1070650 Cash 47950 45600 -2350 Interest (+) 9000
Operating expenses: Accounts receivable 655000 700000 45000 Operating profit before working capital changes 192600
Rent 120600 Inventory 234700 250000 15300 Adjustment for changes in working capital
Utilities 60350 Total current assets 937650 995600 57950 less: Increase in AR (-) (45000)
Phone 6100 Equipment 160000 190000 30000 less: Increase in inventory (-) (15300)
Salary & Wages 650000 Total assets 1097650 1185600 87950 add:Increase in AP (+) 20000
Depreciation 20000 less: Decrease in utilities payable (-) (750)
Marketing 41000 Current Liabilities add: Increase in salaries & wages payable (+) 250
Total 898050 Accounts payables 510000 530000 20000 Cash generated from operating activities 151800
Operating income 172600 Unitilities payables 19000 18250 -750 Income tax paid 57150
Interest expense 9000 Salaries & wages payables 9750 10000 250 Net cash from operating activities 94650
Income before tax 163600 Income tax payables 7100 7250 150 Cash from investing activities
Income tax expense 57300 Total current assets 545850 565500 19650 Purchase of equipment (-) 75000
Net income 106300 Non-current Liabilities Sale of equipment (+) 25000
Loan payables 172000 154000 -18000 Net cash from/ (used in) investing activities (50000)
Total liabilities 717850 719500 1650 Cash from financing activities
Owners' equity Decrease in loan (-) 18000
Capital stock 240000 240000 0 Interest paid (-) 9000
Retained earnings 139800 226100 86300 Dividend paid (-) 20000
Total liabilities & owners' equity 379800 1185600 805800 Net cash from/ (used in) financing activities (47000)
Grand total (2350)

Opening 47950
Flow (2350)
Closing 45600