Bike-With-Us Corporation, a specialty bicycle parts (attachment) - 75011

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  • Posted on: Fri 19 Sep, 2014
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1.         Bike-With-Us Corporation, a specialty bicycle parts replacement venture, was started last year by two former professional bicycle riders who had substantial competitive racing experience including competing in the Tour de France.  The two entrepreneurs borrowed $50,000 from members of their families and each put up $30,000 in equity capital.  Retail space was rented and $60,000 was spent for fixtures and store equipment.  Following are the abbreviated income statement and balance sheet information for the Bike-With-Us Corporation after one complete year of operation.



Sales                            $325,000

            Operating Costs            285,000

            Depreciation                    10,000

            Interest                              5,000

            Taxes                                 6,000


            Cash                                $1,000

            Receivables                     30,000

            Inventories                      50,000

            Fixed Assets, Net           50,000

            Payables                          11,000

            Accruals                          10,000

            Long-Term Loan             50,000

            Common Equity              60,000


A.     Prepare an income statement and a balance sheet for the Bike-With-Us Corporation using only the information provided above.

Solution Description


Income Statement

Sales                         $325,000

Less: Opr. Costs         285,000

               EBITDA         &nbs

Bike-With-Us Corporation, a specialty bicycle parts  (attachment).doc
Bike-With-Us Co...