Question

Company T is a imaginary startup company that has developed an application and is now starting their business and are starting to sell their application to the consumers. Based on the information that is given produce statement of profit or loss and cash flow statement for the next three years as well as balance sheet after year 3.

		€
Owners equity		50 000
Loan		550 000
Development cost		50 000
Labor cost (per year)		200 200
Rent (per year)		12 000
Maintenance (per year)		4 000
Marketing costs (per year)		260 000
Office equipment		3000
Product Price		5
		Year 1 (products)	Year 2 (products)	Year 3 (products)
Expected sales		100 000	200 000	300 000

Answer 1

Solution
	Statement of profit and loss
		Year 1	Year 2	Year3
	Expected sales	100000	200000	300000
	Sales price	5	5	5
	Revenue	500000	1000000	1500000
	Less expenses
	Labor cost	200200	200200	200200
	Rent	12000	12000	12000
	Maintenance	4000	4000	4000
	Maketing cost	260000	260000	260000
	Total expense	476200	476200	476200
	Net profit	23800	523800	1023800
	Balance sheet
		Current	3 Years after
	Liablity and equity
	Owners equity	50000	50000
	Retain earnings	0	1571400
	Loan	550000	550000
	Total	600000	2171400
	Assets
	Development cost	50000	50000
	Office equipment	3000	3000
	Current assets (Bal. figure)	547000	2118400
	Total	600000	2171400