Chemalite, Inc (B)

Problem come out 2 Chemalite illustration 1. present the effects of Chemalites 1991 events on the BSE worksheet specie Flow reference (O, I, F) Event specie A/R 375,000 F P1 (7,500) I P2 P3 (62,500) I (75,000) O P4 230,000 Inventory Patent Cap. Exp. PPE 125,000 7,500 62,500 125,000 7,500 62,500 Notes Pay paid in capital letter RE 500,000 RE Explanation 75,000 75,000 500,000 Balance sheet O O O O O O I F T1 T2 T3 T4 T5. 1 T5. 2 T6 T7. 1 T7. 2 O1 O2 O3 O4 O5 tally 23,750) 685,000 69,500 (175,000) (22,500) (350,000) (80,000) (150,000) 50,000 (50,750) (23,750) R&D set down 754,500 Revenue 175,000 (22,500) Adv. Expense 350,000 (80,000) Admin Expenses 150,000 50,000 (50,000) F (545,000) (25,000) (10,625) O (750) (545,000) (25,000) (10,625) 500,000 Interest Expense Inv. modification Amort. Expense Depr. Expense 113,000 69,500 55,000 100,000 7,500 201,875 46,875 Balance Sheet 15. 515 Fall 2003 posing 1 Problem Set 2 Chemalite grounds 3. Balance Sheet (6/31/91)Assets Cash Ac counts Receivable Inventories fare Current Assets Property, Plant, & Equipment Other (Capitalized Start-up Expenses) Patent Total Assets Liabilities and Stockholders Equity Common Stock Retained earnings Total Liabilities and SE 230,000 75,000 305,000 62,500 7,500 125,000 500,000 500,000 500,000 15. 515 Fall 2003 Session 1 Problem Set 2 Chemalite pillow slip 3. Income Statement (For 6 months June 30, 1991) Revenue Costs and Expenses Advertising formation Manufacturing cost Raw materials R Interest Depreciation amortization of patent sack up Income 15. 515 Fall 2003 Session 1 Problem Set 2 Chemalite Case 3. Direct Statement of Cash Flows (6 months terminate June 30, 1991) Cash provided (used) by operational activities Received from customers Paid for inventory Paid for advertising Paid for manufacturing cost Paid for administration Paid for sake Paid for R expenses Cash provided (used) by investing activities Start-up expenses acquire of PP (75,000) (75,000) (7,500) (62,500) (70,000) Cash provided (used) by financing activities Cash from stock proceeds 75,000 375,000 Increase (decrease) in cash agreement stemma cash balance Ending cash balance 230,000 230,000 15. 515 Fall 2003 Session 1 Problem Set 2 Chemalite Case 3. Balance Sheet (December 31, 1991) Assets Cash Accounts Receivable Inventories Total Current Assets Property, Plant, & Equipment Other (Capitalized Start-up Expenses) Patent Total Assets Liabilities and Stockholders Equity Common Stock Retained earnings Total Liabilities and SE 113,000 69,500 55,000 237,500 201,875 7,500 100,000 546,875 00,000 46,875 546,875 15. 515 Fall 2003 Session 1 Problem Set 2 Chemalite Case 3. Income Statement (Six months ended December 31, 1991) Revenue Costs and Expenses Advertising Administration Manufacturing costs Raw materials R&D Interest Depreciation Amortization of patent 754,500 22,500 80,000 350,000 195,000 23,750 750 10,625 25,000 707,625 Net Income 46,875 15. 515 Fall 2003 Session 1 Problem Set 2 Che malite Case 3. Direct Statement of Cash Flows (For 6 months ended Dec. 1, 1991) Cash provided (used) by operating activities Received from customers Paid for inventory Paid for advertising Paid for manufacturing costs Paid for administration Paid for interest Paid for R&D expenses Cash provided (used) by investing activities Start-up expenses Purchase of PP&E 685,000 (175,000) (22,500) (350,000) (80,000) (750) (23,750) 33,000 (150,000) (150,000) Cash provided (used) by financing activities Cash from stock issuance Increase (decrease) in cash balance Beginning cash balance Ending cash balance (117,000) 230,000 113,000 15. 515 Fall 2003 Session 1