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Jenga Inc Exercise

Accounting Fundamentals Course Presentation

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Hue Pham
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91 views3 pages

Jenga Inc Exercise

Accounting Fundamentals Course Presentation

Uploaded by

Hue Pham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Jenga Inc Exercise Strictly Confidential

Table of Contents
#VALUE!

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.


All rights reserved.  The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.  
No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any form by any means, including photocopying, recording, or other electronic or mechanical methods,
© Corporate Finance Institute. All rights reserved. 
Jenga Inc Exercise 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%
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
Inventory 60 80
Account receivable 80 150

Total current assets 636.20 649.60

Non-current assets
PP&E 810 720

Total assets 1,446.2 1,369.6

Liabilities and shareholders' equity


Current liabilities:
Account payable 30 50

Non-current liabilities:
Lending 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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