Use the infomration provided below to the determine;
1. A balance sheet
2. An income statement
3. A cashflow statement either direct or indirect
>The chiness goverment would waive all taxes for the first 5 years and donate the land use for the first 10 years.
> Cost of building the facility, $2,000,000
> Machinery and equipment costs, $3,000,000
> Training and other set-up cost, $500,000
After shake-down, from discussion with marketing, maufacturing and accounting people, he estimated the following on an annual basis:
> Sales, $15,000,000 with apporximately 20% outstanding in receivable at the end of the year.
> Source material purchases. $8,000,000, of which, $1,500,000 will be unpaid at year end.
> Variable cost of goods manufacutred, (100% sourced materials) 50% of sales.
> Fixed cost of goods maufactured excluding depreciation charges for plant and equipment, $ 2,500,000, (all of which will be paid by year end).
Variable distribution costs, 15% ( all of which will be paid by year end).
> Administrative cost, $500,000, ( all of which will be paid by end year).
> No inventory finished goods is expected.
> Development budget is set at $1,000,000 to adapt the product mix to local demands.
> Tax account has noted that the building can be depreciated over 10 years, and the equipment over 3 years.
> Tax account has noted that due to the uncertainty of future benefit, accounting rules that state that the training and other start-up cost should be written off.
> Historically, bad debts in th area of the golbe are approximately 2% of sales.