Financial Management solution to problem 2-2 B

SABINE Mfg Co
Balance Sheet
December 31, 2003

Assets

CA                                                                             CL

A/C Recieveable   $ 150,000                                      Notes Payable    $ 90,000
Inventory                  110,000                                     A/c Payable           90,000  $               180,000   
Cash                            90,000      $ 350,000               Long term Debt                                   160,000
                                                                                                                               $                340,000

FA                                                                              Equity

Macine & Equipment $ 700,000                               Common Stock                                  $320,000
Acc Depreciation           236,000  $464,000               Retained Earning
                                                                                     Prior Year                                          110,000
                                                                                     Current year                                         70,000



Total                                              $814000               Total:                                                  $814,000

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SAbine Mfg Co
Income Statement
December 31, 2003


Net Sales                                                              $  900,000
Cost of Goods Sold                                                  550,000

Grand Profit                                                             350,000

EBITDA                                                                   (280,000)
(Operating Expense)
Earning After Tax(EAT)                                       $ 70,0000