Table 12
Balance Sheet & Income Statement for Start-up Firm
Years 1-10 of Operation
|
Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
CURRENT ASSETS |
||||||||||
|
CASH |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
|
RECEIVABLES |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
|
INVENTORIES |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
|
OTHER CURRENT ASSETS |
0 |
77,778 |
155,556 |
233,333 |
311,111 |
388,889 |
466,667 |
544,444 |
622,222 |
700,000 |
|
TOTAL CURRENT ASSETS |
5,300,000 |
5,377,778 |
5,455,556 |
5,533,333 |
5,611,111 |
5,688,889 |
5,766,667 |
5,844,444 |
5,922,222 |
6,000,000 |
|
PLANT & EQUIPMENT |
||||||||||
|
Depreciable Assets |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
|
Depreciation |
(185,000) |
(370,000) |
(555,000) |
(740,000) |
(925,000) |
(1,300,000) |
(1,675,000) |
(2,050,000) |
(2,425,000) |
(2,800,000) |
|
Net Depreciable Assets |
5,415,000 |
5,230,000 |
5,045,000 |
4,860,000 |
4,675,000 |
4,300,000 |
3,925,000 |
3,550,000 |
3,175,000 |
2,800,000 |
|
Land |
200,000 |
200,000 |
200,000 |
200,000 |
200,000 |
200,000 |
200,000 |
200,000 |
200,000 |
200,000 |
|
Net Depreciable Assets + Land |
5,615,000 |
5,430,000 |
5,245,000 |
5,060,000 |
4,875,000 |
4,500,000 |
4,125,000 |
3,750,000 |
3,375,000 |
3,000,000 |
|
Other Assets |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
Total Fixed Assets |
6,615,000 |
6,430,000 |
6,245,000 |
6,060,000 |
5,875,000 |
5,500,000 |
5,125,000 |
4,750,000 |
4,375,000 |
4,000,000 |
|
TOTAL ASSETS |
11,915,000 |
11,807,778 |
11,700,556 |
11,593,333 |
11,486,111 |
11,188,889 |
10,891,667 |
10,594,444 |
10,297,222 |
10,000,000 |
|
CURRENT LIABILITIES |
||||||||||
|
Accounts Payable |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
|
Short-term loans |
1,407,400 |
1,266,667 |
1,233,333 |
1,200,000 |
1,166,667 |
1,133,333 |
1,100,000 |
1,066,667 |
1,033,333 |
1,000,000 |
|
Other Current Liabilities |
900,000 |
900,000 |
900,000 |
900,000 |
900,000 |
900,000 |
900,000 |
900,000 |
900,000 |
900,000 |
|
Total Current Liabilities |
3,507,400 |
3,366,667 |
3,333,333 |
3,300,000 |
3,266,667 |
3,233,333 |
3,200,000 |
3,166,667 |
3,133,333 |
3,100,000 |
|
LONG -TERM DEBT |
6,807,600 |
6,418,889 |
5,922,778 |
5,426,667 |
4,930,555 |
4,244,444 |
3,558,333 |
2,872,222 |
2,186,111 |
1,500,000 |
|
OTHER NON-CURRENT LIABILITIES |
400,000 |
400,000 |
400,000 |
400,000 |
400,000 |
400,000 |
400,000 |
400,000 |
400,000 |
400,000 |
|
TOTAL LIABILITIES |
10,715,000 |
10,185,556 |
9,656,111 |
9,126,667 |
8,597,222 |
7,877,778 |
7,158,333 |
6,438,889 |
5,719,444 |
5,000,000 |
|
EQUITY |
||||||||||
|
Shares, Paid-in Capital |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
|
Retained Earnings |
0 |
422,222 |
844,444 |
1,266,667 |
1,688,889 |
2,111,111 |
2,533,333 |
2,955,556 |
3,377,778 |
3,800,000 |
|
TOTAL EQUITY |
1,200,000 |
1,622,222 |
2,044,444 |
2,466,667 |
2,888,889 |
3,311,111 |
3,733,333 |
4,155,556 |
4,577,778 |
5,000,000 |
|
TOTAL LIABILITIES & EQUITY |
11,915,000 |
11,807,778 |
11,700,556 |
11,593,333 |
11,486,111 |
11,188,889 |
10,891,667 |
10,594,444 |
10,297,222 |
10,000,000 |
|
INCOME STATEMENT |
||||||||||
|
SALES |
14,000,000 |
15,000,000 |
15,000,000 |
15,000,000 |
15,000,000 |
15,000,000 |
15,000,000 |
15,000,000 |
15,000,000 |
15,000,000 |
|
COST OF GOODS |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
|
GROSS PROFIT |
4,500,000 |
5,500,000 |
5,500,000 |
5,500,000 |
5,500,000 |
5,500,000 |
5,500,000 |
5,500,000 |
5,500,000 |
5,500,000 |
|
GENERAL EXPENDITURES |
4,500,000 |
4,500,000 |
4,500,000 |
4,500,000 |
4,500,000 |
4,500,000 |
4,500,000 |
4,500,000 |
4,500,000 |
4,500,000 |
|
INCOME BEFORE ALL TAXES |
0 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1,000,000 |
|
DETAIL |
||||||||||
|
INVENTORY |
||||||||||
|
Raw Materials |
360,000 |
360,000 |
360,000 |
360,000 |
360,000 |
360,000 |
360,000 |
360,000 |
360,000 |
360,000 |
|
Goods in Process |
240,000 |
240,000 |
240,000 |
240,000 |
240,000 |
240,000 |
240,000 |
240,000 |
240,000 |
240,000 |
|
Finished Goods & Resale |
1,680,000 |
1,680,000 |
1,680,000 |
1,680,000 |
1,680,000 |
1,680,000 |
1,680,000 |
1,680,000 |
1,680,000 |
1,680,000 |
|
Supplies |
120,000 |
120,000 |
120,000 |
120,000 |
120,000 |
120,000 |
120,000 |
120,000 |
120,000 |
120,000 |
|
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
2,400,000 |
|
|
DEPRECIABLE ASSETS |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
5,600,000 |
|||||
|
Buildings |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
|
Depreciation |
0 |
0 |
0 |
0 |
0 |
(190,000) |
(380,000) |
(570,000) |
(760,000) |
(950,000) |
|
Net Buildings |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,900,000 |
1,710,000 |
1,520,000 |
1,330,000 |
1,140,000 |
950,000 |
|
Personal Property |
3,700,000 |
3,700,000 |
3,700,000 |
3,700,000 |
3,700,000 |
3,700,000 |
3,700,000 |
3,700,000 |
3,700,000 |
3,700,000 |
|
Depreciation |
(185,000) |
(370,000) |
(555,000) |
(740,000) |
(925,000) |
(1,110,000) |
(1,295,000) |
(1,480,000) |
(1,665,000) |
(1,850,000) |
|
Net Personal Property |
3,515,000 |
3,330,000 |
3,145,000 |
2,960,000 |
2,775,000 |
2,590,000 |
2,405,000 |
2,220,000 |
2,035,000 |
1,850,000 |
|
Total Net Depreciable Assets |
5,415,000 |
5,230,000 |
5,045,000 |
4,860,000 |
4,675,000 |
4,300,000 |
3,925,000 |
3,550,000 |
3,175,000 |
2,800,000 |
|
PERSONAL PROPERTY |
||||||||||
|
Manufacturing Machinery & Equipment |
3,059,105 |
2,898,099 |
2,737,094 |
2,576,088 |
2,415,083 |
2,254,077 |
2,093,072 |
1,932,066 |
1,771,061 |
1,610,000 |
|
Non-Manufacturing Machinery & Equipment |
228,124 |
216,117 |
204,111 |
192,104 |
180,098 |
168,091 |
156,085 |
144,078 |
132,072 |
120,000 |
|
Computer |
94,905 |
89,910 |
84,915 |
79,920 |
74,925 |
69,930 |
64,935 |
59,940 |
54,945 |
50,000 |
|
Furniture & Fixtures |
132,867 |
125,874 |
118,881 |
111,888 |
104,895 |
97,902 |
90,909 |
83,916 |
76,923 |
70,000 |
|
Total Personal Property |
3,515,000 |
3,330,000 |
3,145,000 |
2,960,000 |
2,775,000 |
2,590,000 |
2,405,000 |
2,220,000 |
2,035,000 |
1,850,000 |