Chapter 10
The Statement of Cash Flow
497
AP-14A (
2
3
6
)
The balance sheet and income statement for Demgo Inc. are presented below.
Demgo Inc.
Balance Sheet
As at December 31
2016
2015
Assets
Cash
$20,140
$21,000
Accounts Receivable
17,000
19,000
Inventory
21,000
15,000
Total Current Assets
58,140
55,000
Property, Plant & Equipment
Land
110,000
60,000
Machinery
100,000
140,000
Less: Accumulated Depreciation
(40,500)
(60,000)
Total Assets
$227,640
$195,000
Liabilities
Accounts Payable
$29,000
$25,000
Current Portion of Bank Loan
22,000
22,000
Current Liabilities
51,000
47,000
Non-Current Portion of Bank Loan
70,000
65,000
Total Liabilities
121,000
112,000
Shareholders’ Equity
Common Shares
85,000
70,000
Retained Earnings
21,640
13,000
Shareholders’ Equity
106,640
83,000
Liabilities and Shareholders’ Equity
$227,640
$195,000
Demgo Inc.
Income Statement
For the Year Ended December 31, 2016
Sales
$130,000
Cost of Goods Sold
72,000
Gross Profit
58,000
Expenses
Depreciation Expense
20,500
Other Operating Expenses
14,000
Total Expenses
34,500
Operating Income
23,500
Other Revenue
Gain on Sale of Machinery
1,700
Operating Income before Tax
25,200
Income Tax Expense
7,560
Net Income (Loss)
$17,640
