Financial statements for McPhee Distillers Financial Accounting Case Study

Yearly Ledger Changes Income Statement
Account Year 0 Year 1 Year 2 Account Year 0 Year 1 Year 2
Cash 750,000 (727,500) 210,000 Revenue 2,437,500 2,312,500
Inventory 1,187,500 (775,000) COGS 1,687,500 1,950,000
PP&E 500,000 - Gross Profit 750,000 362,500
Accounts Payable 700,000 (487,500) Operating Expenses 490,000 440,000
Paid-in Capital 750,000 - - EBITDA 260,000 (77,500)
Revenue 2,437,500 2,312,500 Depreciation Expense 50,000 50,000
COGS 1,687,500 1,950,000 EBIT 210,000 (127,500)
Operating Expenses 490,000 440,000 Net Income 210,000 (127,500)
Depreciation Expense 50,000 50,000
Accumulated Depreciation (50,000) (50,000)




Balance Sheet Cash Flow Statement
Account Year 0 Year 1 Year 2 Account Year 0 Year 1 Year 2
Assets Net Income 210,000 (127,500)
Cash 750,000 22,500 232,500 Depreciation 50,000 50,000
Inventory 1,187,500 412,500 Change in Inventory (1,187,500) 775,000
PP&E 500,000 500,000 Change in Accounts Payable 700,000 (487,500)
Accumulated Depreciation (50,000) (100,000) Total Operating Cash Flow (227,500) 210,000
Total Assets 1,660,000 1,045,000
Purchase of PP&E (500,000) -
Liabilities and Equity Total Investing Cash Flows (500,000) -
Accounts Payable 700,000 212,500
Paid-In Capital 750,000 750,000 750,000 Increase in Paid-In Capital 750,000 - -
Retained Earnings 210,000 82,500 Total Financing Cash Flows 750,000 - -
Total Liabilities and Equity 750,000 1,660,000 1,045,000
Total Cash Flows 750,000 (727,500) 210,000
Beginning Cash 750,000 22,500
Ending Cash 750,000 22,500 232,500