Manutech Ltd
Income Statement
Year Ended December 31
		2019		2018
Net sales		$ 1,470,000		$ 1,200,000
Variable Costs		882,000		720,000
Contribution Margin		$ 588,000		$ 480,000
Fixed Costs		177,000		114,000
Operating income (EBIT)		$ 411,000		$ 366,000
Interest expense		56,200		53,600
Earnings before taxes (EBT)		$ 354,800		$ 312,400
Income tax expense		106,440		93,720
Earnings after taxes (EAT)		$ 248,360		$ 218,680
Manutech Ltd
Statement of Financial Position
Year Ended December 31
		2019		2018
Assets
Current Assets
	Cash	$ 8,360		$ 79,500
	Accounts Receivable	150,000		105,000
	Merchandise Inventory	112,000		90,000
Total Current Assets		$ 270,360		$ 274,500
Property, Plant and Equipment		1,555,000		1,255,000
Accumulated Depreciation		(455,000)		(290,000)
	Property, Plant and Equiment (net)	$ 1,100,000		$ 965,000
Intangible Assets		120,000		120,000
Total Assets		$ 1,490,360		$ 1,359,500
Liabilities & Shareholder's Equity
Current Liabilities
	Accounts Payable	$ 65,000		$ 72,500
	Accrued Liabilities	15,000		20,000
	Bank Loan	85,000		-
Total Current Liabilities		$ 165,000		$ 92,500
Mortage Payable		650,000		670,000
Total Liaibilities		$ 815,000		$ 762,500
Shareholder's Equity
	Common Shares (10,000 issued)	100,000		100,000
	Retained Earnings	575,360		497,000
Total Shareholder's Equity		$ 675,360		$ 597,000
Total Liab & Shareholder's Equity		$ 1,490,360		$ 1,359,500

You also need to create the Statement of Cash Flows for 2019.

• Of the fixed costs for 2019, depreciation (the only non-cash item in fixed costs) amounts to $165,000.
• The Property, Plant and Equipment account reflects the purchase of a new piece of manufacturing machinery, purchased at a cost of $300,000 There.were no other purchases or sales of Property, Plant and Equipment.
• Although Bank Loan shows up in the current liabilities section, it should not be considered a current liability for Statement of Cash Flow purposes. It is a method of financing the balance sheet.