APPENDIX 2.1 NEW TECH (C): FINANCIAL
STATEMENTS
I
NCOME STATEMENTS
The income statement shows New Tech’s actual performance for 2000.
New Tech Distributors Corp. Income Statements
($000) 2000 Actual
Sales revenue 3,000
Cost of goods sold
Purchases 610
Freight 60
Labor 380
Depreciation and amortization 110
Utilities, insurance, etc. 25
Total cost of goods sold 1,185
Gross margin 1,815
Selling expenses
Salaries 620
Commissions 60
Travel 60
Advertising 70
Depreciation and amortization 30
Special promotional program 17
Total selling expenses 857
Administrative expenses
Salaries 395
Leasing 50
Depreciation and amortization 60
Research and development 50
Total administrative expenses 555
Total operating costs 1,412
Operating income 403
Interest income 5
Interest charges 95
Income before taxes 313
Income taxes 109
Income after taxes 204
Alternatives in Venture Financing—Debt Capital 79
New Tech Distributors Corp. Statements of Retained Earnings
($000) 2000 Actual
Retained earnings (beginning of year) 500
Net earnings for the year 204
Subtotal 704
Dividends 50
Retained earnings (end of year) 654
BALANCE SHEETS
The balance sheet shows New Tech’s financial structure at the end of
2000.
New Tech Distributors Corp. Balance Sheets
($000) 2000 Actual
Assets
Current assets
Cash 20
Marketable securities 100
Prepaid expenses 60
Accounts receivable 450
Inventory 350
Other assets 70
Supplies, etc. 84
Total current assets 1,134
Capital assets
Gross capital assets 1,775
Accumulated depreciation 560
Total net capital assets 1,215
Goodwill 45
Other assets 5
Total assets 2,399
Current liabilities
Accounts payable 550
Term loan 125
Working capital loan 50
Accruals 60
Current portion of long-term debt 30
80 Alternatives in Venture Financing—Debt Capital
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