Water and Power Co Income Statement January 1 - December 31, Year 2 Water and Power Co Balance Sheet December 31, Year 2 Year 1 $9,350,000 $8,500,000 6,970,000 1,530,000 297,500 1,232,500 212,500 1,020,000 408,000 $612,000 $367,200 $244,800 Year 2 Year 2 $629,850 2,099,500 3,674,125 6,403,475 4,094,025 $10,497,500 Year 1 $484,500 1,615,000 2,826,250 4,925,750 3,149,250 $8,075,000 Cash and cash equivalents Receivables Inventory Sales Expenses1 7,480,000 1,870,000 327,250 1,542,750 280,500 1,262,250 504,900 $757,350 $454,410 $302,940 EBITDA Depreciation and amortization expense Current assets EBIT Net fixed assets Total assets Liabilities and Equity: Accounts payable Accruals Notes payable Interest expense EBT Tax expense (40%) Net income Common dividends Addition to retained earnings 1Excludes depreciation and amortization 1,023,506 2,204,475 4,802,606 2,020,769 6,823,375 734,825 2,939,300 3,674,12!5 $10,497,500 734,825 7.98% $1,574,625 $1,211,250 787,313 1,695,750 3,694,313 1,554,438 5,248,750 565,250 2,261,000 2,826,250 $8,075,000 Total current liabilities Long-term debt Total liabilities Common stock ($1 par) Retained earnings Total equity Total debt and equity Shares outstanding Weighted average cost of capital 565,250 7.30%