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Particulars Year 1 Year 2 Year 3

Sales 35,00,000 38,00,000 5,250,000


Less : Sales return
Net sales 3500000 38,00,000 5,250,000
Less : COGS
Purchases 6,64,000 8,00,000 10,00,000
Gross profit 2836000 30,00,000 42,50,000
Less : operating expenses
Salaries & wages 2,460,000 24,60,000 25,00,000
Advertising 1,50,000 180,000 1,00,000
Maintenance 40000 50,000 60,000
Depreciation 220000 220000
Office expenses 15,000 20,000 30,000
Miscellaneous 15,000 20,000 25,000
Telephone 10,000 12,000 15,000
Leased rent 4,20,000 4,20,000 4,20,000
Packaging cost 40,000 80,000 1,00,000
Total operating cost 3,370,000 3,242,000 3,250,000
EBIT -534000 -242,000 1,000,000
Less:Interest expense 1000000 1,000,000 1,000,000
Net profit before tax -1534000 -1,242,000 0
Less: tax (30%)
Net profit -2,042,000 0
Particulars year 1 year 1 year 2 year2 year3 year3
Assets
Fixed assets
Machinery 10000000 10000000 10000000
Less : Depreciation expenses 500000 1000000 1500000
9500000 9000000 8500000
Building 4000000 4000000 4000000
Facility 3000000 3000000 3000000
Office unit 500000 500000 500000
Furniture 500000 500000 500000
Less : depreciation expenses 20000 40000 60000
480000 460000 440000
Current assets
Inventory 928800
Cash 3000000
Total Assests 21408800

Liabilities and owner’s equity


Current liabilities 10000000
Long term debt 10000000
Total liabilities 20000000
Retained earning -2,334,000
Account payable 20,00,000
Outstanding salaries and wages 1,00,000
Leased contract 1,00,000
current borrowing 1542800
Total liabilities & Owner’s Equity