The The Stockholders of Chemalite of Chemalite Essay Sample

The affiliated study highlights the Corporation’s fiscal activities and consequences for the period stoping December 31. 2003.

Executive Summary
•For the six months stoping December 31. 2003 Chemalite had gross revenues of $ 754. 500 with $ 69. 500 uncollected at twelvemonth terminal. •Ended 2003 with a hard currency balance of $ 113. 000
•Net income for 2003 $ 58. 750

The followers is an appraisal of each of the three major fiscal studies: statement of hard currency flows. income statement and balance sheet.

Statement of Cash Flows
Prior to get downing operations in July 2003 the undermentioned hard currency inflows/outflows were completed: •Cash Inflows:
oStock issued – 375. 000 portions at $ 1. 00 a portion for a entire hard currency influx of $ 375. 000 •Cash escapes:
oIncorporation costs of $ 7500
oMachinery costs of $ 62. 500
oInventory costs of $ 75. 000
?Resulting in a net hard currency spending of $ 145. 000
From the period of July 1 to December 31. 2003 the undermentioned hard currency inflows/outflows occurred: •Cash Inflows:
oCash collected from Customers of $ 685. 000
•Cash Escapes:
oInventory costs of $ 175. 000
oAdvertising costs of $ 22. 500
oManufacturing costs of $ 350. 000
oAdmin costs of $ 80. 000
oEquipment costs of $ 150. 000
oInterest on loan $ 750
oPrototype cost of $ 23. 750
?Resulting in a net hard currency spending of $ 802. 000
While there was $ 947. 000 in hard currency spendings throughout 2003 to acquire Chemalite established and running. at December 31. 2003 Chemalite had a hard currency balance of $ 113. 000. Equipment costs account for $ 212. 500 of the $ 947. 000 in hard currency spendings. It would be expected traveling frontward this cost would be significantly reduced to maintenance costs on the current equipment. Manufacturing costs of $ 350. 000 appear to be a spot on the high side. but as operations continue the fabrication procedure could be stream lined to cut down costs.

Income Statement
•Total gross of $ 754. 500
•Cost of goods sold $ 545. 000
•Gross income ( before operating disbursals ) $ 209. 500
•Operating Expenses $ 150. 750
•Resulting in a net income of $ 58. 750

Chemalite ended 2003 with a net income of $ 58. 750 which is about eight per centum of gross revenues. Overall an impressive border when sing the immatureness of the company.

Balance Sheet
•Total Assets of $ 558. 750
•Total Liabilities of $ 0
•Total Stockholders Equity of $ 558. 750

Chemalite has $ 558. 750 in entire assets with $ 113. 000 of that being hard currency. As of December 31. 2003 Chemalite does non hold any liabilities. intending it does hold any debt.