Chemalit Chemicals

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CHEMALITE CHEMICALS

Answers:
1.Summary of Cash Transactions for six months ended June 30, 2003
Summary of cash transactions for the period of Jan-June 2003
DateTransactionDrCr

2-JanShares of common stock issued (375,000 at $1 each)$375,000 15-JanPayment of legal fees, charter costs & printing expenses$ 7,500.00 15-JunMachinery construction62500
24-JunRaw materials purchase75000
$375,000$ 145,000
Balance c/f$230,000

2.Income Statement ended June 30, 2003

CHEMALITE, INC
Income Statement
For the period ended June 30, 2003
$
Revenue
0
Expense
General and administrative expense $7,500.00
Depreciation expense 260.42
Amortisation expense 1,041.67
Total Expense 8,802.09
Net Income $(8,802.09)

The company was yet to make any sales revenue, while initial expenses were incurred during the first 6 months of operations. Hence for this period, the company made an net loss of $8,802.09

3.Financial Position June 30, 2003

CHEMALITE, INC
Balance Sheet
At June 30, 2003
Assets
Cash $230,000.00
Inventory 75,000.00
Property, Plant and Equipment$62,500.00
Less: Accumulated Depreciation260.4262,239.58

Patent
125,000.00
Less: Amortization expense (1041.67)123,958.33
Total assets $491,197.91

Liabilities 0

Stockholder's Equity
Contributed Capital 500,000.00
Retained Earnings (8,802.09)
Total Stockholder's equity 491,197.91

Total Liabilities and Stockholder's equity $491,197.91

CHEMALITE, INC
Cash Flow Statement
For the period ended June 30, 2003
Cash flows for operating activities
Cash paid to suppliers $ (75,000.00)
Cash paid for legal fees, charter & printing costs (7,500.00) Net cash flow from operating activities (82,500.00)
Cash flows for investing activities
Cash paid to purchase machinery (62,500.00)

Cash flows from financial activities
Cash received from shareholders 375,000.00

Cash at end of year $230,000.00

4.Financial Statements for stockholder’s for year 2003

CHEMALITE, INC
Balance Sheet
At December 31, 2003
Assets
Cash $ 113,000.00
Accounts Receivable 69,500.00
Inventory 55,000.00
Property, Plant and Equipment$ 212,500.00
Less: Accumulated Depreciation10,885.42 201,614.58
Patent 125,000.00
Less: Amortisation 25,000.00 100,000.00
Total Assets $ 539,114.58

Liabilities 0

Stockholder's Equity
Contributed Capital 500,000.00
Retained Earnings 39,114.58
Total Stockholder's equity 539,114.58

Total Liabilities and Stockholder's equity $ 539,114.58

CHEMALITE, INC
Income Statement
For the period ended December 31, 2003

Revenue $ 754,500.00
Expenses
Cost of Goods Sold $ 545,000.00
General and administrative expense 87,500.00
Research and development expense 23,750.00
Advertisement expense 22,500.00
Interest expense 750.00
Amortisation expense 25,000.00
Depreciation expense 10,885.42
Total Expense 715,385.42
Net Income $ 39,114.58

CHEMALITE, INC
Cash Flow Statement
For the period ended December 31, 2003
Cash flows for operating activities
Cash received from customers $ 685,000.00
Cash paid to suppliers and employees(600,000.00)
Cash paid for administrative expenses(87,500.00)
Cash paid for research...
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