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Chemalite Transaction Analysis: Assets, Liabilities & Owners' Equity

Chemalite generated $75,450 in revenue and $45,375 in net income in 2001. As of December 31, 2001, Chemalite had $113,000 in cash, $69,500 in receivables, $55,000 in inventories, and $202,875 in machinery for total assets of $545,375. Liabilities were $0 and owners' equity included $500,000 in common stock and $45,375 in retained earnings for total owners' equity of $545,375. In 2001, Chemalite used $49,500 in operations, $212,500 for machinery purchases, and generated $375,000 from issuing common stock.

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Farhad Kabir
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70 views6 pages

Chemalite Transaction Analysis: Assets, Liabilities & Owners' Equity

Chemalite generated $75,450 in revenue and $45,375 in net income in 2001. As of December 31, 2001, Chemalite had $113,000 in cash, $69,500 in receivables, $55,000 in inventories, and $202,875 in machinery for total assets of $545,375. Liabilities were $0 and owners' equity included $500,000 in common stock and $45,375 in retained earnings for total owners' equity of $545,375. In 2001, Chemalite used $49,500 in operations, $212,500 for machinery purchases, and generated $375,000 from issuing common stock.

Uploaded by

Farhad Kabir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Md.

Farhad Kabir
7084590528
MBA 2023 Core C

CHEMALITE
TRANSACTION ANALYSIS

Assets, Liabilities & Owners’ Equity

Cash Paid-in Capital


BB = 0 BB = 0

$375000 $375000

EB=$375000 EB=$375000

Cash Prepaid Rent


BB=$375000 BB=0
$7500
$7500

EB=$367500 EB=$7500

Cash PP&E
BB=$367500 BB=0

$62500 $62500

EB=$62500
EB=$305000

Cash Inventory
BB=$305000 BB=0

$75000 $75000

EB=$230000 EB=$75000
Md. Farhad Kabir
7084590528
MBA 2023 Core C

CHEMALITE
TRANSACTION ANALYSIS

Revenues & Expenses

Cash R&D Expense


BB=$230000 BB=0

$23750 $23750

EB=$206250 EB=$23750

Cash Revenue
BB=$206250 BB=0

$685000 $754500
EB=$891250
EB=$75450
0
AR
BB=0
$69500
EB=$69500

Cash Inventory
BB=$891250 BB=$75000

$175000 $175000

EB=$716250 EB=$25000
0

Cash Advertising Expense


BB=$71625 BB=0
0
$22500 $22500

2
Md. Farhad Kabir
7084590528
MBA 2023 Core C

EB=$69375 EB=$22500
0

Cash Manufacturing Expense


BB=$69375 BB=0
0
$430000 $430000
EB=$26375 EB=$43000
0 0

Cash PP&E
BB=$26375 BB=$62500
0
$150000 $150000
EB=$11375 EB=$21250
0 0

Cash Interest Expense


BB=$11375 BB=0
0
$750 $750
EB=$11375 EB=$750
0

Inventory Material Expense


BB=$25000 BB=0
0
$195000 $195000
EB=$55000 EB=$19500
0

3
Md. Farhad Kabir
7084590528
MBA 2023 Core C

PP&E Depreciation Expense


BB=$21250 BB=0
0
$10625 $10625
EB=$20187 EB=$10625
5

Patent Amortization Expense


BB=$12500 BB=0
0
$25000 $25000
EB=$10000 EB=$25000
0

Prepaid rent Rental Expense


BB=$7500 BB=0
$1500 $1500
EB=$6000 EB=$1500

4
Md. Farhad Kabir
7084590528
MBA 2023 Core C

CHEMALITE
Income Statement for 2001

Sales $754500
Expenses:
Manufacturing costs $430000
Advertising $22500
Materials $195000
Interest $750
Research & development $23750
Depreciation $10625
Amortization of patent $25000
Rent $1500

Net Income $45375

Balance Sheet at December 31, 2001


Assets: Liabilities & Owners’ Equity:
Cash $113000 Liabilities: $0
Receivables $69500
Inventories $55000
Pre-paid rent $6000 Owners’ Equity:
Machinery $201875 Common stock 500000
Patent $100000 Retained earnings 45375
Total Owners’ Equity 545375

Total $545375 Total $545375

5
Md. Farhad Kabir
7084590528
MBA 2023 Core C

CHEMALITE
Statement of Cash Flows for 2001

Cash from Operations


Cash Received from:
Customers $ 685000
Cash Paid for:
Manufacturing $ 430000
Advertising $ 22500
Materials $ 250000
Interest $ 750
Research & Development $ 23750
Rent $ 7500
Net Cash Used in Operations $ (49500)

Cash from Investments


Acquisition of Machinery $212500
Net Cash Used in Investing $(212500)

Cash from Financing


Issue Common Stock $375000
Borrowing $50000
Loan Repayment $(50000)
Net Cash from Financing $375000

Net Cash Flows $113000


Cash Beginning of the Year $0
Cash End of the Year $113000

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