B D E F H 15,438 (50) CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 15,388 4,723 10,665 1 CAPTAIN JET INC. 2 INCOME STATEMENT 3 FOR THE YEAR ENDED DECEMBER 31, 2014 4 Sales Revenue 5 Less: Sales Return 6 Net Sales 7 Cost of Goods Sold 8 Gross Profit 9 Utilities Expenses 10 Salary and Wages Expenses 11 Rent Expenses 12 Depreciation Expenses 13 Interest Expenses 14 Supplies Expenses 15 Bad Debt Expenses 16 Total Operating Expenses 17 Earnings before Income Taxes 18 Income Tax Expenses 19 Earnings after Income Taxes 20 21 Retained Earnings, Beginnin Net Income/Loss Dividends Payment Retained Earnings, End of th 19,031 333 (100) 19,264 1,519 5,688 313 1,781 788 50 163 10,300 364 31 333 M CAPTAIN JET INC BALANCE SHEET 31 Dec 13 10,500 7,055 5,052 68 SOO 5,150 6,850 5,000 68 23,307 17,130 0 0 31 Dec 14 Current Assets Cash Accounts Receivable Inventories Prepaid insurance Prepaid Rent Total Current Assets Non Current Assets Long term investments Investments in equity Securities Land held for future development Property, Plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other identifiable Intangible Assets Total Non-Current Assets Total Assets 0 6.375 5,585 0 6,375 5,655 0 47,000 (23.438) 48.875 (25,219) 1,000 9,500 6,000 52,219 75,526 1,000 9.500 6,000 52,125 69.255 0 0 4.188 6,553 188 225 1,500 1,086 825 155 10,568 188 1 500 1,055 825 7,755 13,750 Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non Current Liabilities Total Liabilities Stockholders' Equity Common Stock ($10 par, 11,000 and 10,000 shares) Preferred Stock (5% dividend, $100 par values, 1050 and 1000 sh Paid in capital - Common Stock Pald.in capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 15,000 0 0 15,000 25,668 0 13,750 13,125 13,750 21.SOS 1,250 19.264 625 (1,594) 49,858 75,526 12,500 12,500 3,438 1,250 19,031 625 (1.594) 47,750 69,255 Provide projected Income Statement, Retained Earnings statement and Projected Balance Sheet on the right using the following assumptions: 1 sales growth is 10%; sales return, as a percentage of sales revenue, does not change 2 Gross profit margin is the same as 2014 profit margin 3 Depreciation expense/Prior PPE (gross) = 4% 4 Interest expense/Prior year long-term debt =6% 5 All other expenses (insurance, supplies, utilities, bad debt and rent) grow at the same rate as sales growth. 6 Income tax expense/ pre-tax income = 12% 7 A/R turnover is the same as that calculated for year 2014 8 A/P turnover is the same as that calculated for year 2014 9 Inventory turnover is the same as that calculated for year 2014 10 There is no change in current assets other than Cash, A/R and inventory 11 Capital expenditure/Sales -7% 12 Assume no change in long-term assets except for PP&E. 13 Assume no change in all liabilities, excpet for A/P 14 Assume no change in shareholders' Equity except for Retained Earnings 15 No dividend is paid on common stock and 5% dividend is paid on preferred stock 5 3 L M N P CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Sales Revenue Less: Sales Return Net Sales Cost of Goods Sold Gross Profit Utilities Expenses Salary and Wages Expenses Rent Expenses Depreciation Expenses Interest Expenses Supplies Expenses Bad Debt Expenses Total operating Expenses Earnings before Income Taxes Income Tax Expenses Earnings after Income Taxes CAPTAIN JET INC. Balance Sheet FOR THE YEAR ENDED DECEMBER 31, 2015 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in equity securities Land held for future development Property, Plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable Intangible Assets Total Non-Current Assets Total Assets Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend) Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Retained Earnings, Beginning of the year Net Income/Loss Dividends Payment Retained Earnings, End of the year B D E F H 15,438 (50) CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 15,388 4,723 10,665 1 CAPTAIN JET INC. 2 INCOME STATEMENT 3 FOR THE YEAR ENDED DECEMBER 31, 2014 4 Sales Revenue 5 Less: Sales Return 6 Net Sales 7 Cost of Goods Sold 8 Gross Profit 9 Utilities Expenses 10 Salary and Wages Expenses 11 Rent Expenses 12 Depreciation Expenses 13 Interest Expenses 14 Supplies Expenses 15 Bad Debt Expenses 16 Total Operating Expenses 17 Earnings before Income Taxes 18 Income Tax Expenses 19 Earnings after Income Taxes 20 21 Retained Earnings, Beginnin Net Income/Loss Dividends Payment Retained Earnings, End of th 19,031 333 (100) 19,264 1,519 5,688 313 1,781 788 50 163 10,300 364 31 333 M CAPTAIN JET INC BALANCE SHEET 31 Dec 13 10,500 7,055 5,052 68 SOO 5,150 6,850 5,000 68 23,307 17,130 0 0 31 Dec 14 Current Assets Cash Accounts Receivable Inventories Prepaid insurance Prepaid Rent Total Current Assets Non Current Assets Long term investments Investments in equity Securities Land held for future development Property, Plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other identifiable Intangible Assets Total Non-Current Assets Total Assets 0 6.375 5,585 0 6,375 5,655 0 47,000 (23.438) 48.875 (25,219) 1,000 9,500 6,000 52,219 75,526 1,000 9.500 6,000 52,125 69.255 0 0 4.188 6,553 188 225 1,500 1,086 825 155 10,568 188 1 500 1,055 825 7,755 13,750 Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non Current Liabilities Total Liabilities Stockholders' Equity Common Stock ($10 par, 11,000 and 10,000 shares) Preferred Stock (5% dividend, $100 par values, 1050 and 1000 sh Paid in capital - Common Stock Pald.in capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity 15,000 0 0 15,000 25,668 0 13,750 13,125 13,750 21.SOS 1,250 19.264 625 (1,594) 49,858 75,526 12,500 12,500 3,438 1,250 19,031 625 (1.594) 47,750 69,255 Provide projected Income Statement, Retained Earnings statement and Projected Balance Sheet on the right using the following assumptions: 1 sales growth is 10%; sales return, as a percentage of sales revenue, does not change 2 Gross profit margin is the same as 2014 profit margin 3 Depreciation expense/Prior PPE (gross) = 4% 4 Interest expense/Prior year long-term debt =6% 5 All other expenses (insurance, supplies, utilities, bad debt and rent) grow at the same rate as sales growth. 6 Income tax expense/ pre-tax income = 12% 7 A/R turnover is the same as that calculated for year 2014 8 A/P turnover is the same as that calculated for year 2014 9 Inventory turnover is the same as that calculated for year 2014 10 There is no change in current assets other than Cash, A/R and inventory 11 Capital expenditure/Sales -7% 12 Assume no change in long-term assets except for PP&E. 13 Assume no change in all liabilities, excpet for A/P 14 Assume no change in shareholders' Equity except for Retained Earnings 15 No dividend is paid on common stock and 5% dividend is paid on preferred stock 5 3 L M N P CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Sales Revenue Less: Sales Return Net Sales Cost of Goods Sold Gross Profit Utilities Expenses Salary and Wages Expenses Rent Expenses Depreciation Expenses Interest Expenses Supplies Expenses Bad Debt Expenses Total operating Expenses Earnings before Income Taxes Income Tax Expenses Earnings after Income Taxes CAPTAIN JET INC. Balance Sheet FOR THE YEAR ENDED DECEMBER 31, 2015 Current Assets Cash Accounts Receivable Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in equity securities Land held for future development Property, Plant, and Equipment Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable Intangible Assets Total Non-Current Assets Total Assets Current Liabilities Accounts payable Salary and Wages Payable Interest Payable Unearned Revenue Income Tax payable Property taxes payable Utilities payable Total Current Liabilities Non-Current Liabilities Notes payable Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock (5% dividend) Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity CAPTAIN JET INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015 Retained Earnings, Beginning of the year Net Income/Loss Dividends Payment Retained Earnings, End of the year