Solution chemalite

CASO FINANZAS

1. Problem Set #2: Chemalite Case
15.515 Fall 2003
Session 1
1. Record the effects of Chema
lite’s 1991 events on the BSE worksheet
E
v
e
n
t
C
as
h
A
/
R
In
v
ent
or
y
P
at
en
t
C
ap
.
E
x
p
.
P
P
E
N
o
t
e
s
P
a
y
P
a
id in C
apit
a
l
R
E
R
E
E
x
plana
t
ion
P
1
37
5,
000

12
5,
000

500
,
0
00



P
2
(
7
,
500
)


7,
50
0


P
3
(
6
2,
500
)


6
2
,
500


P
4
(
7
5,
000
)


75
,
0
00

23
0,
000

-


7
5
,
0
0
0

12
5,
000

7,
50
0


6
2
,5
0
0


-




5
0
0
,
0
0
0



-



B
a
l
a
nc
e
S
h
e
e
t
T
1
(
2
3,
750
)


(
2
3,
750
)


R&
D E
x
pe
n
s
e
T
2
68
5,
000

69,
50
0

75
4,
500

R
e
v
e
nue
T
3
(
1
7
5
,
000
)
175
,
0
00

T
4
(
2
2,
500
)


(
2
2,
500
)


Ad
v
.
Ex
p
e
n
s
e
T
5
.1
(
3
5
0
,0
0
0
)
350
,
0
00

T
5
.
2
(
8
0,
000
)


(
8
0,
000
)


A
d
m
in E
x
p
ens
es
T
6
(
1
5
0
,
000
)
15
0,
000

T
7
.1
5
0
,0
0
0


5
0
,
000



T
7
.
2
(
5
0,
750
)


(
5
0,
000
)



(
7
5
0
)



In
te
r
e
s
t

E
x
p
e
n
s
e
O
1
(
545
,
0
00)

(
5
4
5
,
000
)
In
v
.

A
d
ju
s
t
m
e
n
t
O
2
(
2
5,
000
)


(
2
5,
000
)


A
m
o
r
t. E
x
p
e
n
s
e
O
3
(
1
0,
625
)


(
1
0,
625
)


D
e
p
r
.
E
x
pe
ns
e
O4 O5 To
t
a
l
11
3,
000

69,
50
0
55
,
0
00

10
0,
000

7,
50
0


20
1,
875

-




5
0
0
,
0
0
0



4
6
,8
7
5


B
a
la
n
c
e
S
h
e
e
t
Cash
Flo
w
ty
pe (O, I, F
)
FIIO OOOOOOIF
F
O
---

2. Problem Set #2: Chemalite Case
15.515 Fall 2003
Session 1
3. Balance Sheet (6/31/91):
Asse
t
s
Cas
h
230,
000

A
c
c
ount
s
Rec
e
iv
abl
e
-

In
v
e
nt
or
ie
s
75,
000

T
o
t
a
l Cur
r
e
nt
A
s
s
e
t
s
305,
000

P
r
oper
t
y
,
P
lant
,
&
E
q
ui
pm
ent
62,
5
00

O
t
her
(
C
api
t
al
iz
ed S
t
ar
t
-
up E
x
pens
es
)
7
,
5
00

P
a
t
e
nt
125,
000

T
o
t
a
l A
s
s
e
t
s
500,
000

L
ia
b
ilit
ie
s
a
n
d
S
t
o
c
k
h
o
ld
e
r
s
' E
q
u
it
y
Com
m
on S
t
oc
k
5
00,
0
00

R
e
t
a
in
e
d
e
a
r
n
in
g
s
-

T
o
t
a
l Liabil
it
ies
and S
E
500,
000

3. Problem Set #2: Chemalite Case
15.515 Fall 2003
Session 1
3. Income Statement (For
6 months June 30, 1991):
Rev
e
nue
-

Cos
t
s
and E
x
pens
es
A
d
v
e
r
t
is
in
g
-

Ad
mi
n
ist
r
a
t
io
n
-

M
a
nuf
a
c
t
ur
ing c
o
s
t
s
-

Raw m
a
t
e
r
ial
s
-

R&
D
-

In
t
e
r
e
s
t
-

Depr
ec
iat
ion
-

A
m
or
t
iz
a
t
ion of
pat
e
nt
-

-

Net
I
n
c
o
m
e
-

4. 15.515 Fall 2003
Session 1
3. Direct Statement of Cash
Flows (6 months ended June 30, 1991):
C
a
s
h
pr
ov
ided (
u
s
e
d)
by
oper
at
ing ac
t
iv
it
ies
Rec
e
iv
ed f
r
om
c
u
s
t
om
er
s
P
a
id f
o
r
i
n
v
ent
or
y
(
75,
000)

P
a
id f
o
r
adv
er
t
is
ing
-

P
a
id f
o
r
m
anuf
a
c
t
ur
in
g c
o
s
t
s
-

P
a
id f
o
r
adm
inis
t
r
at
io
n
-

P
a
id
f
o
r
i
n
te
r
e
s
t
-

P
a
id f
o
r
R&
D ex
pens
es
-

(
7
5,
000
)

C
a
s
h
pr
ov
ided (
u
s
e
d)
by
inv
e
s
t
in
g ac
t
iv
it
ies
S
t
ar
t
-
up ex
pens
es
(
7
,
5
00)

P
u
r
c
has
e of
P
P
&
E
(
62,
500)

(
7
0,
000
)

C
a
s
h
pr
ov
ided (
u
s
e
d)
by
f
inanc
in
g ac
t
iv
it
ies
C
a
sh
f
r
o
m
st
o
c
k i
s
su
a
n
ce
3
7
5
,
0
0
0

375,
000

In
c
r
eas
e
(
d
ec
r
e
as
e)
in c
a
s
h
bal
a
nc
e
230,
000

B
eginning c
a
s
h
balanc
e
-

E
nding c
a
s
h
balanc
e
230,
000


Problem Set #2: Chemalite Case

5. Problem Set #2: Chemalite Case
15.515 Fall 2003
Session 1
3. Balance Sheet (December 31, 1991):
A
sse
t
s
C
a
s
h
113,
000

A
c
c
o
u
n
ts
R
e
c
e
iv
a
b
le
6
9
,5
0
0

In
v
e
nt
or
ies
5
5,
000

T
o
ta
l C
u
r
r
e
n
t
A
s
s
e
ts
2
3
7
,
5
0
0

P
r
oper
t
y
,
P
lant
,
&
E
q
uipm
ent
2
01,
875

O
t
her
(
C
apit
aliz
ed S
t
ar
t
-
up E
x
pens
es
)
7
,
5
00

P
a
t
e
nt
100,
000

T
o
ta
l A
s
s
e
ts
5
4
6
,
8
7
5

Liabilit
ies
and S
t
oc
k
h
older
s
' E
quit
y
C
o
m
m
on S
t
oc
k
5
00,
000

R
e
t
a
ined ear
n
ings
46,
875

T
o
t
a
l Liabilit
ies
and S
E
546,
875

6. Problem Set #2: Chemalite Case
15.515 Fall 2003
Session 1
3. Income Statement (Six
months ended Dec
e
mber 31, 1991):
R
e
v
enue
754,
5
00

C
o
s
t
s
and E
x
pens
es
A
d
v
e
r
t
is
in
g
22,
500

A
d
m
ini
s
t
r
a
t
ion
80,
000

M
a
nuf
ac
t
u
r
ing c
o
s
t
s
3
50,
000

R
a
w
m
a
t
e
r
ial
s
1
95,
000

R
&
D
23,
750

In
t
e
r
e
s
t
7
5
0

D
epr
ec
ia
t
ion
10,
625

A
m
or
t
iz
a
t
ion of
pat
ent
25,
000

707,
6
25

N
e
t
I
n
c
o
m
e
46,
8
75

7. Problem Set #2: Chemalite Case
15.515 Fall 2003
Session 1
3. Direct Statement of Cash Flow
s (For 6 months ended Dec. 31, 1991):
Cas
h
pr
ov
ided (
u
s
e
d)
by
oper
a
t
ing ac
t
iv
it
ies
Rec
e
iv
ed f
r
om
c
u
s
t
om
er
s
6
85,
000

P
a
id
f
o
r
inv
ent
or
y
(
175,
000)

P
a
id
f
o
r
adv
e
r
t
is
in
g
(
22,
500)

P
a
id
f
o
r
m
anuf
ac
t
u
r
ing c
o
s
t
s
(
350,
000)

P
a
id
f
o
r
adm
inis
t
r
a
t
ion
(
80,
000)

P
a
id
f
o
r
int
e
r
e
s
t
(
750)

P
a
id
f
o
r
R&
D ex
pens
es
(
23,
750)

33,
000

Cas
h
pr
ov
ided (
u
s
e
d)
by
i
n
v
e
s
t
ing ac
t
iv
it
ies
S
t
ar
t
-
up ex
pens
es
-

P
u
r
c
has
e of
P
P
&
E
(
1
50,
000)

(
150,
000)

Cas
h
pr
ov
ided (
u
s
e
d)
by
f
inanc
in
g ac
t
iv
it
ies
Cas
h
f
r
om
s
t
oc
k
i
s
s
uanc
e
-

-

In
c
r
eas
e (
d
ec
r
eas
e)
i
n
c
a
s
h
bal
anc
e
(
117,
000)

B
egi
nni
ng c
a
s
h
balanc
e
230,
000

E
ndi
ng c
a
s
h
bal
anc
e
113,
000