Problem 2

Requirement No. 2
Balance Sheet
Year Beg Cost Interest Amort End
2007 - 525 100 625
2008 625 525 100 1,250
2009 1,250 156.25 1,094
2010 1,094 156.25 938
2011 938 156.25 781
2012 781 156.25 625
2013 625 156.25 469
2014 469 156.25 313
2015 313 156.25 156
2016 156 156.25 -
Income Statement
Year Revenue Cost Amort Int Exp NI effect
2007 525 500 25
2008 525 500 25
2009 120 10 156 100 (146)
2010 150 10 156 100 (116)
2011 170 10 156 4
2012 200 10 156 34
2013 210 10 156 44
2014 220 10 156 54
2015 230 10 156 64
2016 240 10 156 74
Cash Flows
Year Receipts Net CF
Cost Int/Loan
2007 1,000 500 100 400
2008 500 100 (600)
2009 120 10 100 10
2010 150 10 1,100 (960)
2011 170 10 160
2012 200 10 190
2013 210 10 200
2014 220 10 210
2015 230 10 220
2016 240 10 230
Intangible Asset - License
Disb