Chemalite SolutionHBS

Chemalite, Inc. Income Statement from January 1, 2003 to June 30, 2003 Sales Cost of Sales Gross Profit Depreciation Expenses Operating Expense Net Income

$0 $0 $0 $0 ($7,500) ($7,500)

Chemalite, Inc. Cash Flows Statement from January 1, 2003 to June 30, 2003 Cash flows from Operating Activities Cash collections Cash payments for purchases Cash payments for operating expenses Interest and taxes Total cash payments Net cash provided by operating activities Cash flows from Investing Purchase of hard assets (machinery) Total Cash flows from investing Cash flows from Financing Sale of stock Total cash flow from financing Cash Summary Cash on January 1, 2003 Net Change in Cash Cash on June 30, 2003

to June 30, 2003

$0 ($75,000) ($7,500) $0 ($82,500) ($82,500)

($62,500) ($62,500)

$375,000 $375,000

$375,000 ($145,000) $230,000

Chemalite, Inc. Balance Sheet for June 30, 2003 Assets Current Assets Cash Accounts Receivable Inventory Total current assets Fixed Assets Equipment Patent Total fixed assets Intangible assets Total assets Liabilities and Shareholders Equity Liabilities Current Liabilities Accounts payable Taxes payable Total Current Liabilities Long-term liabilities Long-term loans Total liabilities Shareholders' Equity Common Stock Retained Earnings Total shareholders' equity Total liabilities and shareholders' equity

03

$230,000 $0 $75,000 $305,000

$62,500 $125,000 $187,500 $0 $492,500

$0 $0 $0

$0 $0

$500,000 ($7,500) $492,500 $492,500

Chemalite, Inc. Income Statement for the year ending Deceber 31, 2003 Sales Cost of Sales Materials Manufacturing Total COGS Gross Profit Gross Margin Depreciation Expense Operating Expense Operating Income Interest Expense Net Income before Taxes Income Taxes Net Income after Taxes

$754,500 ($195,000) ($350,000) ($545,000) $209,500 28% ($25,000) ($133,750) $50,750 ($750) $50,000 $50,000

Chemalite, Inc. Balance Sheet for the year ending Deceber 31, 2003 Assets Current Assets Cash Accounts Receivable Inventory Total current assets Fixed Assets Equipment Patent Total fixed assets Intangible assets Total assets Liabilities and Shareholders Equity Liabilities Current Liabilities Accounts payable Taxes payable Total Current Liabilities Long-term liabilities Long-term loans Total liabilities Shareholders' Equity Common Stock Retained Earnings Total shareholders' equity Total liabilities and shareholders' equity

ber 31, 2003

$113,000 $69,500 $55,000 $237,500

$212,500 $100,000 $312,500 $0 $550,000

$0 $0 $0

$0 $0

$500,000 $50,000 $550,000 $550,000

Chemalite, Inc. Cash Flows Statement for the year ending Deceber 31, 2003 Cash flows from Operating Activities Cash collections Cash payments for purchases Cash payments for operating expenses Interest Tax Total cash payments Net cash provided by operating activities Cash flows from Investing Purchase of hard assets (machinery) Total Cash flows from investing Cash flows from Financing Sale of stock Total cash flow from financing Cash Summary Net Change in Cash Cash on January 1, 2003 Cash on June 30, 2003

eceber 31, 2003

$685,000 ($600,000) ($133,750) ($750) $0 ($734,500) ($49,500)

($212,500) ($212,500)

$375,000 $375,000

$113,000 $0 $113,000