Sheet1 Sheet2 LaFontaine Automotive Classic Cars Co. INCOME STATEMENT For the year ended December 31, 2023 UNADJUSTED DEBIT DEBIT CREDIT Sales revenue 9,000,000 0 0 Cost of sales Gross margin Expenses Advertising and promotion 6,000,000 3.000.000 0 0 0 CREDIT ADJUSTED 0 $9,000,000 0 6,000,000 3,000,000 850,000 0 0 0 0 850,000 Depreciation expense 210,000 20,202 0 230,202 Insurance expense 40,000 0 0 0 40,000 Interest expense 90,000 42,485 0 0 132,485 Rental expense 100,000 0 0 100,000 0 0 Legal, accounting, and other professional fees 35,000 0 0 0 0 35,000 Office and general expenses 95,000 0 0 0 0 95,000 Warranty expense 125,000 450,000 0 125,000 0 450,000 Expense due to lawsuits 325,000 0 0 300,000 0 25,000 Wage and salary expense 595,000 0 0 0 0 595,000 Total operating expenses 2,465,000 0 0 0 0 2,452,687 Income before taxes from operations 535,000 547,313 Other revenue warranty revenue 450,000 450,000 0 0 0 -- dividend revenue 15,000 0 0 0 0 15,000 Income before income tax expense 1,000,000 562,313 Income tax expense 200,000 0 0 0 0 200,000 Net income 800,000 362,313 Earnings per share $4.44 Earnings per share: BASIC FULLY DILUTED STATEMENT OF RETAINED EARNINGS UNADJUSTED For the year ended December 31, 2023 DEBIT DEBIT CREDIT CREDIT ADJUSTED Retained earnings, January 1, 2023 Net income Retained earnings, December 31, 2023 0 800,000 800,000 362,313 $362,313 STATEMENT OF FINANCIAL POSITION As at December 31, 2023 UNADJUSTED DEBIT DEBIT CREDIT CREDIT ADJUSTED Assets Current assets Cash* 4,700,000 125,000 0 125,000 0 4,700,000 Accounts receivable * 2,300,000 0 0 0 0 2,300,000 Inventory of automobiles * 6,660,000 0 0 0 0 6,660,000 Total current assets 13,660,000 0 0 0 0 13,660,000 Capital assets (net)* 2,790,000 0 0 0 0 2,790,000 Right of use asset (net) 0 404,045 404,045 0 0 808,090 Total assets 16,450,000 17,258,090 Liabilities and shareholder's equity Current liabilities Accounts payable * 22,000 0 0 0 0 22,000 Accrued liabilities 53,000 0 0 0 0 53,000 Tax payable 200,000 0 0 0 0 200,000 Liability due to lawsuits 325,000 300,000 0 0 0 25,000 Current portion of lease liability 0 0 0 0 0 Total current liabilities 600,000 300,000 Long-term liabilities Long-term bank loan* Convertible bond payable* Warranty liability Unearned warranty revenue Lease liability long term portion Total non-current liabilities Total liabilities 1,000,000 0 0 0 0 1,000,000 2,000,000 0 0 0 0 2,000,000 0 125,000 0 450,000 0 325,000 0 0 0 450,000 0 450,000 0 100,000 0 808,090 0 708,090 3,000,000 4,483,090 3,600,000 4,783,090 Shareholders' equity Preferred shares, 25,000 shares issued and o/s* Common shares, 180,000 shares issued and o/s * Contributed surplus - warrants * Retained earnings Total shareholder's equity account balances are correct $2,500,000.00 2,500,000 $9,300,000 0 0 0 9,300,000 250,000 0 0 0 0 250,000 800,000 0 0 0 0 362,313 12,850,000 12,412.313 16,450,000 17,195,403