Balance sheet ($ millions)

Cash $50

Other current assets $100

Long term assets, $120

net Total assets $270

Noninterest bearing short term debt $60

Short term debt (10%) 10

Senior long-term debt 0

Subordinated debt Equity 0

Total Liabilities & Equity $270

Interest Coverage

Net Operating Income $30

Interest Expense

Short term debt $1

Senior long term debt $0

- Subordinated debt $0

Total $1

NOI/Interest expense $30

Effective tax rate 30 %

Depreciation $20

1. Create a basic income statement (starting from operating income to net income).