DECISION CASE STUDY

ANALYZING A COMPANY AS AN INVESTMENT

A year out of college, you have KD 10,000 to invest. A friend has started GrandPrize Unlimited, Inc., and she asks you to invest in her company. You obtain the company's financial statements, which are summarized at the end of the first year as follows:

GrandPrize Unlimited, Inc. GrandPrize Unlimited, Inc. Income Statement Balance Sheet Year Ended Dec. 31, 2019 Dec. 31, 2019 Revenues..... .mmm KD120,000 Cash............... KD 7,000 Liabilities......... KD 56,000 Expenses......... 75.000 Other assets.... 99.000 Equity.. 50.000 Total liabilities Net income......... KD 45.000 Total assets...... KD106.000 and equity........ KD106.000Answer Sheet: Req. 1 - Net Income, total assets and total liabilities/equity each is 2 marks GrandPrize Unlimited, Inc. Income Statement Year Ended Dec. 31, 2019 Revenues..... ...#1 +9 Expenses....thi ? Net income........GrandPrize Unlimited, Inc. Balance Sheet Dec. 31, 2019 Cash........ 7,000 Liabilities......... Other assets.... Equity............ Total assets...... = Total liabilities & equity .... = Calculations: each 2 marks Revenues = Expenses = Other Assets = Liabilities = Equity =