Income Statement Year 1

Assumption Table of Income Statement Year 1

Income Statement Year 2

Assumption Table of Income Statement Year 2

Income Statement Year 3

Assumption Table of Income Statement Year 3

Cash Flow Year 1

Cash Flow Year 2

Cash Flow Year 3

Balance Sheet

Only the $50,000 equipment is treated as a long-term asset

– The remaining $45,500 of startup costs ($5k + $5k + $10k + $25k + $0.5k) are treated as immediately expensed (common for organization costs, initial marketing, training, etc.).

– Starting owner’s equity = $95,500 (the amount required to fund startup costs).

– All revenue and operating expenses are cash → no receivables/payables, no inventory. – Income tax is accrued at 12% but not paid within the projected years → it accumulates as a liability.