INPUT DATA INTO THE YELLOW CELLS

ASSETS Beginning balance LIABILITIES AND EQUITY

1.Cash and cash equivalents 300 1.Short-term loans
2.Receivable from customers 0 2.Payable to suppliers
3.Inventories 200 3. Long-term loans
4.Historical cost of Fixed assets 800 4. Owner's equity
Accumulated depreciation and amortization -100
TOTAL ASSETS 1200 TOTAL LIABILITIES&EQUITY
1. The total amount from sales (NOT SUBJECT TO SCT) excluding VAT each month
*The total amount from sales (SUBJECT TO SCT) excluding VAT each month
* The percentage of the total amount paid by the customers during the month of sales
* The remaining paid after i month. And i equals
2. Total amount payable to domestic suppliers excluding VAT
* The percentage of the total amount paid by the customers during the month of purchases
* The remaining paid after i month. And i equals
3. The amount of basis for calculating import duty which is NOT SUBJECT TO SCT)
* The percentage of the basis paid during the month of purchases
* The remaining paid after i month. And i equals
4.Direct costs (excluding raw materials and depreciation)
5.Indirect costs attributed to selling expenses
Attributed to general & administrative expenses.
6. Depreciation of fixed assets attributed to direct cost
*Attributed to selling expenses
*Attributed to general and administrative expenses
7. Outside purchasing services cost (excluding VAT)- attributed to selling expenses
Attributed to general & administrative expenses.
* Paid in the first month
* Paid in the second month
* Paid in the third month
8. Inventories at the end of the quarter
9. Monthly rate of the short-term loan
* Paid in the first month
* Paid in the second month
* Paid in the third month
10. Annual rate of the long-term loan
* Paid in the first month
* Paid in the second month
* Paid in the third month
11. Payment of short term loan principal at the end of the month
The month when it is paid
12. Account receivable from beginning period is paid
* The month when it is paid
13. Account payable from beginning period is paid
* The month when it is paid
14. Short term investment
* Paid in the first month
* Paid in the second month
* Paid in the third month
15. Withdrawals of the short term investment
* Collected in the first month
* Collected in the second month
* Collected in the third month
16. Disposal of a fixed asset (excluding VAT) at the end of the period
* Collected in the first month
* Collected in the second month
* Collected in the third month
Net book value
The historical cost
Is the fixed asset subject to VAT? (Yes=1, No=0)
17.VAT rate (credit method)
*Percentage of VAT from importation paid in the month of importation
*the remaining is paid after i month, and i equals
*Percentage of VAT payable paid in the month of calculation
*the remaining is paid after i month, and i equals
18.SCT rate
* The amount of SCT calculated from raw material purchases is allocated to goods sold.
* The percentage of SCT paid in the month of calculation
* the remaining is paid after i month, and i equals
19.Import tariff
* The amount of import duties paid in the month of importation
* the remaining is paid after i month, and i equals
20. CIT rate
* Paid in the first month
* Paid in the second month
* Paid in the third month
21. Another tax attributed to general & administrative expenses
* The month when it is paid
22. Capital contributions by fixed assets from shareholders at the end of the period
Beginning balance
200
0
200
800

1200
500
300
60%
1
700
50%
1
0
0%
0
40
8
12
12
8
0
10
0
11
11
11
150
1%
2
2
2
15%
0
0
7.5
15
3
0
0
0
0
 100
100
0
0
95
0
95
0
19
0
0
19
18
50
0
10%
0%

0%
1
50%
50
0%
1
0%
0%
1
20%
0

10
2
0
3.2 The Income Statement of X

1. Sales 2100 (500+300/(1+50%))*3

2. Deductions 0
Sales discounts
Sales rebates
Sales Returns
3. Net sales 2100
4.Costs of goods sold 2156 (Total amount payable to domestic suppliers ex
5. Gross profit/loss -56
6.Financial income 0
7. Financial expenses 18.5 Short term loan(200)*Monthly rate of shortterm

Short term
loan(200)*Monthly
rate of shortterm
loan(1%)*3 + Long-
term
loans(200)*Annual
rate of
In which: Loan interest expenses 13.5 longterm(15%)*3/12
8. Selling expenses 78 (Indirect costs attributed to selling expenses+D
9. General and administrative expenses 46 Indirect cost Attributed to general & administra
10.Net operating profit/loss -198.5
11. Other income 19 16. Disposal of a fixed asset (excluding VAT)
12. Other expenses 18 Net book value
13. Other profit/loss 1
14. Profit/loss before tax -197.5
15.Corporate income tax 0
16.Profit/loss after tax -197.5
 (The total amount from sales (NOT SUBJECT TO SCT) excluding VAT each month + The total amount from sa

unt payable to domestic suppliers excluding VAT(700)-50+0+Direct Cost(40)+ Depreciation(12))*3+Invetory(200) - End of

loan(200)*Monthly rate of shortterm loan(1%)*3 + Long-term loans(200)*Annual rate of longterm(15%)*3/12+Short term i

osts attributed to selling expenses+Depreciation of fixed assets attributed to direct cost to selling expense + Outside purchasin
st Attributed to general & administrative expenses.+ Depreciation G&A expense + Outside purchasing services cost G&A ex

al of a fixed asset (excluding VAT) at the end of the period

onth + The total amount from sales (SUBJECT TO SCT) excluding VAT each month /(1+50%))*3

n(12))*3+Invetory(200) - End of the inventory(150)

ngterm(15%)*3/12+Short term investment(100) - withdraw(95)

ing expense + Outside purchasing services cost (excluding VAT)- attributed to selling expenses)x3
urchasing services cost G&A expense)x3 + 21. Another tax attributed to general & administrative expenses
istrative expenses
3.1 Taxes
Output VAT amount each month (the 1st and the 2nd month) 80
Deducted input VAT amount 71
VAT amount payable (the 1st and the 2nd month) 9
Output VAT amount (the 3rd month) 80
Deducted input VAT amount 71
VAT amount payable (the 3rd month) 9
Output SCT amount each month 100
Deducted input SCT amount 50
SCT amount payable 50
Profit/(loss) before tax -197.5
CIT
0
3.3 Cash flows

Items
Month 1 2 3
I.Cash inflows from: 528 975 899
1.Sales in the month m 528 528 528
2.Sales in the month m+i 352 352 352
3.Withdrawal of short-term investment 0 95 0 0
4. Disposal of fixed assets 0 0 19 0
5.Decrease in receivables from customers 0 0 0
II.Cash outflows from: 558 912 924.5
1. Raw material purchases (month m) 385 385 385
Raw material purchases (month m+i) 385 385 385
2. The imported raw material (month m) 0 0 0
The imported raw material (month m+i) 0 0 0
3.Direct costs 40 40 40
4.Indirect costs 20 20 20
5.Outside purchasing services 11 11 11 0
6.Short-term loan interest 2 2 2 0
7.Long-term loan interest 0 0 7.5 0
8. Short-term investment 100 0 0 0
9.Import duty payment (month m) 0 0 0
Import duty payment (month m+i) 0 0 0
10.VAT from importation (month m) 0 0 0
VAT from importation (month m+i) 0 0
11.VAT amount payable (month m) 0 0 0
VAT amount payable (month m+i) 9 9 9
12.SCT amount payable (month m) 0 0 0
SCT amount payable (month m+i) 50 50 50
13.CIT 0 0 0 0
14.Other taxes 0 10 0 0
15. Payment of short-term loan principal 0 0 15
16. Decrease in payable to suppliers 0 0 0
Increases/Decreases in cash -30 63 -25.5
Beginning cash and cash equivalents 300 270 333
Ending cash and cash equivalents 270 333 307.5
3.4The Balance Sheet of X
ASSETS Beginning balance
A. CURRENT ASSETS 500
I.Cash and cash equivalents 300
1. Cash 300
2. Cash equivalents
II.Short-term investments 0
1. Short-term Investments
2. Provision for devaluation of short-term investments
III. Accounts receivable 0
1. Receivable from customers 0
2. Prepayments to suppliers
3. Short-term inter-company receivables
4. Receivables according to the progress construction contracts
5. Other receivables
6. Provisions for bad debts
IV.Inventories 200
1. Inventories 200
2. Provisions for devaluation of inventories
V. Other current assets 0
1. Short-term prepaid expenses
2. VAT to be deducted
3. Taxes and statutory obligations
4. Other current assets
B.LONG TERM ASSETS 700
I. Long-term receivables 0
1. Long-term receivable from customers
2. Capital from subsidiaries
3. Long-term inter-company receivable
4. Other long-term receivables
5. Provisions for bad long-term receivables
II. Fixed assets 700
1. Tangible fixed asset 700
Historical costs 800
Accumulated depreciation -100
2. Financial leasehold assets 0
Historical costs
Accumulated depreciation
3. Intangible fixed asset 0
Initial costs
Accumulated amortization
4. Construction-in-progress
III. Investment property 0
Historical costs
Accumulated depreciation
IV.Long-term investments 0
1. Investments in affiliates
2. Investment in associates, joint-ventures
3. Other long-term investments
4. Provisions for devaluation of long-term investments
V. Other long-term assets 0
1. Long-term prepaid expenses
2. Deferred income tax
3. Other long-term assets
TOTAL ASSETS 1200
LIABILITIES AND OWNERS' EQUITY ĐK
A.LIABILITIES 400
I. Current liabilities 200
1.Short-term debts and loans 200
2. Payable to suppliers 0
3. Advances from customers
4. Taxes and other obligations to the State Budget
5. Payable to employees
6. Accrued expenses
7. Inter-company payables
8. Payable according to the progress construction contracts
9. Other payables
10. Provisions for short-term payables
II. Long-term liabilities 200
1. Long-term accounts payable to suppliers
2. Long-term inter-company payables
3. Other long-term payable
4. Long-term debts and loans 200
5.Deferred income tax payables
6. Provisions for unemployment allowance
7. Provisions for long-term payables
B.OWNERS' EQUITY 800
I.Basic owners' equity 800
1.Capital 800
2. Share premiums
3. Other sources of capital
4. Treasury stocks
5. Differences on asset revaluation
6. Foreign exchange differences
7. Business promotion fund
8. Financial reserved fund
9. Other funds
10.Retained earnings
11.Construction investment fund
II. Other sources and fund 0
1. Bonus and welfare fund
2. Sources of expenditure
3. Fund to form fixed assets
TOTAL LIABILITIES AND OWNERS' EQUITY 1200
Ending balance
809.5
307.5
307.5

352
352
0

150
150

0
0

622
0

622
622
750
-128
0

0
 0

1431.5
CK
829
629
185
385

59

200

200

602.5
602.5
800
 -197.5

1431.5
CASH FLOWS STATEMENT (Direct method)
I. Cash flows from operating activities
1. Gains from sales of goods and service provisions and other gains 2288
2. Payments to suppliers -1958
3. Payments to employees -180
4. Loan interests already paid -13.5
5. Payments for corporate income tax 0
6. Other gains
7. Other disbursements -128
Net cash flows from operating activities 8.5
II. Cash flows from investing activities
1. Purchases and construction of fixed assets and other long-term assets
2. Gains from disposal and liquidation of fixed assets and other long-term assets 19
3. Loan given and purchases of debt instruments of other entities
4. Recovery of loan given and disposals of debt instruments of other entities
5. Investments into other entities -100
6. Withdrawals of investments in other entities 95
7. Receipts of loan interests, dividend and profit shared
Net cash flows from investing activities 14
III.Cash flows from financing activities
1. Gains from stock issuance and capital contributions from shareholders
2. Repayments for capital contributions and repurchases of stocks already issued
3. Short-term and long-term loan received
4. Loan principal amounts repaid -15
5. Payments for financial leasehold assets
6. Dividend and profit already paid to the owners
Net cash flows from financing activities -15
Net cash flows during the year 7.5
Cash and cash equivalent at the beginning of the period 300
Effects of fluctuations in foreign exchange rates
Cash and cash equivalent at the end of the period 307.5

CASH FLOWS STATEMENT (Indirect method)

I. Cash flows from operating activities
1. Profit/ (loss) before tax -197.5
2. Adjustments
Depreciation of fixed asset 60
Provisions
Gain/ (loss) from foreign exchange differences
Gain/ (loss) from investing activities 4
Loan interest expenses 13.5
3. Operating profit before changes of working capital -120
Increase/ (decrease) of accounts receivable -352
Increase/ (decrease) of inventories 50
Increase/ (decrease) of accounts payable 444
Increase/ (decrease) of prepaid expenses
Loan interests already paid -13.5
Corporate income tax already paid 0
Other gains
Other disbursements 0
Net cash flows from operating activities 8.5
(Other parts are the same as those of the direct method)