Magic GMBA

$3$

$$Corporation

$?$

$?$

Income Statements

$$For the Years Ended December

$3$

$1$

$,$

$2$

$0$

$2$

$0$

$$and

$2$

$0$

$1$

$9$

$$

$$

$2$

$0$

$2$

$0$

$2$

$0$

$1$

$9$

$$ $ $

Operating revenues

$-$

$$Note

$1$

$1$

$,$

$0$

$4$

$6$

$,$

$4$

$0$

$0$

$9$

$7$

$2$

$,$

$0$

$0$

$0$

$$

Less: Cost of goods sold

$4$

$8$

$4$

$,$

$0$

$0$

$0$

$4$

$8$

$0$

$,$

$0$

$0$

$0$

$$

Gross Profit

$5$

$6$

$2$

$,$

$4$

$0$

$0$

$4$

$9$

$2$

$,$

$0$

$0$

$0$

$$

Operating expenses

$$Selling and administrative expenses

$1$

$8$

$4$

$,$

$0$

$0$

$0$

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$

$$Depreciation expense

$4$

$0$

$,$

$0$

$0$

$0$

$4$

$0$

$,$

$0$

$0$

$0$

$$

Other expense

$8$

$0$

$,$

$0$

$0$

$0$

$6$

$4$

$,$

$0$

$0$

$0$

$$

$$Bad debt expense

$4$

$,$

$0$

$0$

$0$

$3$

$,$

$6$

$0$

$0$

$$

$$Rent expense

$8$

$0$

$,$

$0$

$0$

$0$

$8$

$0$

$,$

$0$

$0$

$0$

$$

Operating expenses

$3$

$8$

$8$

$,$

$0$

$0$

$0$

$3$

$8$

$7$

$,$

$6$

$0$

$0$

$$

Net income from operations

$1$

$7$

$4$

$,$

$4$

$0$

$0$

$1$

$0$

$4$

$,$

$4$

$0$

$0$

$$

Inventory loss

$($

$4$

$0$

$,$

$0$

$0$

$0$

$)$

$$

Interest expense

$($

$3$

$5$

$,$

$7$

$3$

$6$

$)$

$($

$3$

$5$

$,$

$3$

$9$

$2$

$)$

Income before tax

$9$

$8$

$,$

$6$

$6$

$4$

$6$

$9$

$,$

$0$

$0$

$8$

$$

Income tax expense

$($

$4$

$0$

$,$

$0$

$0$

$0$

$)$

$($

$2$

$4$

$,$

$0$

$0$

$0$

$)$

Net income

$5$

$8$

$,$

$6$

$6$

$4$

$4$

$5$

$,$

$0$

$0$

$8$

$$

Note

$1$

: Operating revenue includes $

$8$

$4$

$,$

$6$

$0$

$0$

$$gain on disposal of plant assets and other similar items.Magic GMBA

$3$

$$Corporation

$?$

$?$

$$Balance Sheets

$$December

$3$

$1$

$,$

$2$

$0$

$2$

$0$

$,$

$$and

$2$

$0$

$1$

$9$

ASSETS

$2$

$0$

$2$

$0$

$2$

$0$

$1$

$9$

$$ $ $

Cash

$1$

$1$

$3$

$,$

$8$

$8$

$0$

$4$

$6$

$9$

$,$

$4$

$0$

$8$

$$

$$Accounts receivable

$3$

$6$

$0$

$,$

$0$

$0$

$0$

$2$

$8$

$0$

$,$

$0$

$0$

$0$

$$

Less: Allowance for bad debts

$($

$4$

$,$

$8$

$0$

$0$

$)$

$($

$4$

$,$

$4$

$0$

$0$

$)$

Inventory

$4$

$4$

$0$

$,$

$0$

$0$

$0$

$3$

$6$

$0$

$,$

$0$

$0$

$0$

$$

$$

Total current assets

$9$

$0$

$9$

$,$

$0$

$8$

$0$

$1$

$,$

$1$

$0$

$5$

$,$

$0$

$0$

$8$

$$

Long term investment

$9$

$5$

$,$

$6$

$0$

$0$

$8$

$7$

$,$

$2$

$0$

$0$

$$

Property, plant, and equipment

$7$

$5$

$2$

$,$

$0$

$0$

$0$

$4$

$0$

$0$

$,$

$0$

$0$

$0$

$$

Less: Accumulated depreciation

$($

$1$

$5$

$2$

$,$

$0$

$0$

$0$

$)$

$($

$1$

$6$

$0$

$,$

$0$

$0$

$0$

$)$

Goodwill

$1$

$2$

$0$

$,$

$0$

$0$

$0$

$$

$$

Total assets

$1$

$,$

$7$

$2$

$4$

$,$

$6$

$8$

$0$

$1$

$,$

$4$

$3$

$2$

$,$

$2$

$0$

$8$

$$

LIABI