Question

Build an income statement, balance sheet, and cash flow statement on excel sheets with the following info:

• Sales 50
• short term assets 20
• Depreciation 5
• COGS 20
• Goodwill 5
• Net borrowings -10
• EBIT 30
• Long term debt 50
• sale/purchase stock   10
• Interest 10
• Plant & equipment 40
• # shares of stock    3
• Taxes 5
• short term liabilities 15

(Assume all numbers in millions )

Answer 1

Assumptions

1.Assumed this is the first year of commencement of bussiness

2.The details to update in cash flow statement has not provided as like Opening cash balance which taken as zero

3.Out of $ 50 million sales, $ 35 millions are considered as cash sales and updated cash flow statement accordingly

4.Based on the details provided the Cash flow statement has provided accordingly

XYZ Ltd			Balance Sheet
			For the Years Ending [Dec 31, 2017 and Dec 31, 2018]
		$ Millions
Assets		2018	2017
Current Assets
	Cash	-
	Accounts receivable
	Inventory	10
	Prepaid expenses
	Short-term Assets	20
	Total current assets	30	-
Fixed (Long-Term) Assets
	Long-term investments
	Property, plant, and equipment	40
	(Less accumulated depreciation)
	Intangible assets	5
	Total fixed assets	45	-
Other Assets
	Deferred income tax
	Other
	Total Other Assets	-	-
Total Assets		75	-
Liabilities and Owner's Equity
Current Liabilities
	Accounts payable
	Short-term loans	15
	Income taxes payable
	Accrued salaries and wages
	Unearned revenue
	Current portion of long-term debt
	Total current liabilities	15	-
Long-Term Liabilities
	Long-term debt	50
	Net Borrowings	10
	Total long-term liabilities	60	-
Owner's Equity
	Owner's investment
	Retained earnings
	Other
	Total owner's equity	-	-
Total Liabilities and Owner's Equity		75	-
			{42}
Common Financial Ratios
Debt Ratio (Total Liabilities / Total Assets)		1.00
Current Ratio (Current Assets / Current Liabilities)		2.00
Working Capital (Current Assets - Current Liabilities)		15	-
Assets-to-Equity Ratio (Total Assets / Owner's Equity)
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity)

XYZ Ltd			Income Statement
			For the Years Ending [Dec 31, 2017 and Dec 31, 2018]
		$ Millions
Revenue		2018	2017
	Sales revenue	50
	(Less sales returns and allowances)
	Service revenue
	Interest revenue
	Other revenue
Total Revenues		50	-
			[42]
Expenses
	Advertising
	Bad debt
	Commissions
	Cost of goods sold	20
	Depreciation	5
	Employee benefits
	Furniture and equipment
	Insurance
	Interest expense
	Maintenance and repairs
	Office supplies
	Payroll taxes
	Rent
	Research and development
	Salaries and wages
	Software
	Travel
	Utilities
	Web hosting and domains
	Other
Total Expenses		25	-
	EBIT	25	-
	Interest Expense	10
	Income tax expense	5
Income from Continuing Operations		10	-
Shares Stock		3
Earnings per share		3.33

XYZ Ltd
Cash Flow Statement
	For the Year Ending	12/31/2018
	Cash at Beginning of Year	0
		$ Millions
Operations
Cash receipts from
	Customers	35
	Other Operations
Cash paid for
	Inventory purchases	(20)
	General operating and administrative expenses
	Wage expenses
	Interest	(10)
	Income taxes	(5)
Net Cash Flow from Operations		0
Investing Activities
Cash receipts from
	Sale of property and equipment
	Collection of principal on loans	50
	Sale of investment securities
Cash paid for
	Purchase of property and equipment	(40)
	Making loans to other entities
	Purchase of investment securities	(20)
Net Cash Flow from Investing Activities		(10)
Financing Activities
Cash receipts from
	Issuance of stock
	Borrowing	10
Cash paid for
	Repurchase of stock (treasury stock)
	Repayment of loans
	Dividends
Net Cash Flow from Financing Activities		10
Net Increase in Cash		0
	Cash at End of Year	-