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    Jenga Inc Solution Year 1 Year 2: © Corporate Finance Institute

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    Pirvu
    The document provides financial statements and calculations for Jenga Inc. for years 1 and 2. It includes an income statement, balance sheet, and calculations for revenues, expenses, taxes, retained earnings, and dividends for both years.

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    © All Rights Reserved
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    Jenga Inc Solution Year 1 Year 2: © Corporate Finance Institute

    Uploaded by

    Pirvu
    826 views2 pages
    The document provides financial statements and calculations for Jenga Inc. for years 1 and 2. It includes an income statement, balance sheet, and calculations for revenues, expenses, taxes, retained earnings, and dividends for both years.

    Original Title

    Jenga+Inc+Solution

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    The document provides financial statements and calculations for Jenga Inc. for years 1 and 2. It includes an income statement, balance sheet, and calculations for revenues, expenses, taxes, retained earnings, and dividends for both years.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    826 views2 pages

    Jenga Inc Solution Year 1 Year 2: © Corporate Finance Institute

    Uploaded by

    Pirvu
    The document provides financial statements and calculations for Jenga Inc. for years 1 and 2. It includes an income statement, balance sheet, and calculations for revenues, expenses, taxes, retained earnings, and dividends for both years.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    © Corporate Finance Institute

    Jenga Inc Solution Year 1 Year 2


    Jenga Inc engages in the following transactions:

    Issues common shares 1,000


    Borrows 400
    Repays loan 100
    Pays interest 24 18

    Buys property and plant (estimated useful life is 10 years) 900

    Buys inventory 350 400


    Cash paid for inventory 320 380

    Sells inventory 510 550


    Cash received from sales 430 480

    Inventory left at year end 60 80

    Pays expenses 40 50
    Pays tax at 30% 19.8 3.6
    Pays a dividend 30 5

    Requirements:

    1. Produce a balance sheet and income statement for Jenga Inc for Years 1 and 2.

    2. Produce the financial statements for Year 2.

    Income Statement
    Revenues 510 550
    Cost of sales (290) (380)
    Gross profit 220 170

    Expenses (40) (50)


    Depreciation (90) (90)
    Operating profit (EBIT) 90 30

    Finance costs (24) (18)


    Profit before taxes 66 12

    Tax at 30% (19.8) (3.6)


    Net income 46 8

    Dividend (30) (5)


    Retained earnings 16.2 3.4

    Balance Sheet
    Assets
    Current assets:
    Cash 496.2 419.6
    Receivables 80 150
    Inventory 60 80
    Other
    Total current assets 636.2 649.6

    Non-current assets
    Property, plant and equipment 810 720
    Other
    Total assets 1,446.2 1,369.6

    Liabilities and shareholders' equity


    Current liabilities:
    Accounts payable 30 50

    Non-current liabilities:
    Long term borrowing 400 300

    Shareholder's equity:
    Common shares 1,000 1,000
    Retained earnings 16.2 19.6
    Total liabilities and shareholders' equity 1,446.2 1,369.6

    Balance Sheet Check 0.0 0.0

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