Adagio Limited Case

Adagio Limited Start-up

500,000 shares ; €1/share

Harry : 100,000 shares at €100,000

Fred: 25,000 shares at €50,000

Bill: 50,000 shares at €100,000

* 175,000 shares

Equipment: €85,000

Raw materials: €20,000

Credit bank: €125,000; 8% rate, 5 years 125,000/5=25,000 ;

* 8%*25,000= 2,000

Transaction | Cash | AccountsReceivable | RawMaterials | Equipments | | Loan | AcctsPayable(Fournisseurs) | Taxes Payable | Ordinary Shares | Share Premium | Retained Earnings |

OpeningBalance | 270 K | | 20 K | 85 K | =375 K | 125 K | | | 175 K | 75 K | 0 |

Sales | 1071.5 K | 105K | (314K) | | = 862.5 K | | | | | | 862.5 K |

Purchase | (310 K) | | 310 K | | = | | | | | | (112) |

Labour | (112) | | | | = | | | | | | |

Selling | (162) | | | | = | | 18 K | | | | (180 K) |

General andAdmin | (75 K) | | | | = | | | | | | (75 K) |

Principal | (25 K) | | | | = | (25 K) | | | | | 0 |

Interest | (2 K) | | | | = | | | | | | (2 K) |

Equipment | (75 K) | | | (75 K | = | | | | | | |

Raw MatsInventory | | | | | = | | | | | | |

Depreciation | | | | (20 K) | = | | | | | | (20 K) |

Taxes | (56.82 K) | | | | = | | | 85.23 K | | | (142.05 K) |

Dividends | (87.5 K) | | | | = | | | | | | (87.5 K) |

Closing Balance | 436.18 K | 105 K | 16 K | 140 K | = 697.18 K | 100 K | 18 K | 85.23 K | 175 K | 75 K | 243.95 K |

Sales:

175 V à €3.5 K€ 145V * €3.5K= €507.5 cash

30V * €3.5K= €105 credit

60C à 7K€ €420 cash

12DB à €12K €144 cash Cash: €1,071.5 K et Credit: € 105 K

Raw Mats:

Achat de raw mats € 310 K

Stock initial: 20K

Sales raw mats: X

= Stoack final = 16 K X= 314 K

Equipments : 75K + 85K = 160K ; /8 years 20 K per year for Eqpt Depreciation

Pre_tax income= 473.5 * 0.3 = 142.05 = TAXES 40%: 56.82 K payees...