PRETTY ME FINANCIAL STATEMENTS Assets Liabilities and equity Current assets Current liabilities Cash Accounts payable (Suppliers) 25,000 Initial Investment 1,000,000 Accounts payable (Distribution) 7,200 Cash Income 645,000 Accounts payable (Advertising) 10,000 Salaries -200,000 Building purchase -400,000 Long-term liabilities Office equipment -20,000 Computer -10,000 Mortgage 373,333 Suppliers -155,000 Operating machine loan 300,000 License -5,000 Advertising -40,000 Distribution -36,000 Principal -126,667 Rent -360,000 Interest rate¹ -54,533 Cash at end of period 237,800 Prepaid expenses (rent) 288,000 Prepaid expenses (license) 2,500 Payments receivable (clients) 55,000 Inventory 25,000 Fixed assets Computers 10,000 Equit y Office equipment 20,000 Building purchase 800,000 Equity 1,000,000 Operating machine 400,000 Accumulated retained earnings 122,767 Total assets 1,838,300 Total liabilities and equit y 1,838,300 Interest rate¹ Principal Mortgage 400,000 Interest rate Mortgage 0.5% number of payments 180 Interest rate Loan 8% Principal Loan 400,000 number of payments - loan 4 Principal payment 2222.222222 Mortgage Principal Principal paid Interest 1 400,000 2222.222 2000.00 2 397,778 2222.222 1988.89 3 395,556 2222.222 1977.78 4 393,333 2222.222 1966.67 5 391,111 2222.222 1955.56 6 388,889 2222.222 1944.44 7 386,667 2222.222 1933.33 8 384,444 2222.222 1922.22 9 382,222 2222.222 1911.11 10 380,000 2222.222 1900.00 11 377,778 2222.222 1888.89 12 375,556 2222.222 1877.78 Total 26,667 23266.67 Loan Principal Principal paid Interest 1 400,000 100,000 8,000 Total 100,000 8,000 Total: Loan + Mortgage 126,667 31,266.67 Profit and loss for the period Sales 700,000 Salaries -200,000 Suppliers -180,000 Distribution -43,200 Rent -72,000 Advertising -50,000 Interest rate -54533 License -2500 Inventory 25,000 Profit 122,767 Dividends 0 Retained earnings 122,767