Question
I need an income statement for Melchester Rovers for 20X1. All the information needed is below: Melchester Rovers was set up as a football club
I need an income statement for Melchester Rovers for 20X1. All the information needed is below:
Melchester Rovers was set up as a football club on 1 January 20X1. On that date it issued 200 million 1 shares to investors for cash.
During 20X1 the following took place (assume all transactions took place on 1 January)
Purchased a stadium for 80 million, with a 20 year expected lifespan.
Borrowed 50 million from a bank, repayable in 20X6. Interest is payable at 12% at the end of the year.
Signed 10 players for a total of 40 million on 4 year contracts, and 6 players for a total of 30 million on 5 year contracts.
Sold 45,000 season tickets to fans for 1,800 each. The season tickets last for three years.
Signed a 2 year sponsorship deal with an American car company for 60 million. The car company had paid 10 million by 31 December 20X6.
Paid player wages of 21 million
Paid other overheads of 4 million.
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