Brightside Bakeries opened its first location this year. The owner kept a list of everything that happened and needs year-end financial statements for the bank. All amounts are in $ thousands ($K).
- 1. Borrowed to buy ovens
- $200.0K at 8% interest
- 2. Ovens' useful life
- 10 years, straight-line
- 3. Sales, all on credit
- $500.0K
- Collected by year-end
- 84%
- 4. Flour, butter & packaging bought (cash)
- $260.0K
- Cost of what was sold (COGS)
- 40% of sales
- 5. Interest for the year
- Paid in cash
- 6. Dividend to the owner
- $30.0K
- Tax rate (paid in cash)
- 25%
Your assignment
Build the year: income statement first, then cash flow, then show the balance sheet balances. Everything starts from zero.