Question

RD Please
1. Construct a simple cash flow statement, a balance sheet, and an income statement for XYZ Corporation after 12 months of operations, assuming the following details:
•     A paid-in capital of $200,000
•     Monthly revenue of $150,000
•     Cost of goods at $50,000 per month
•     Overhead of $60,000 per month
•     An average A/R of 60 days (2 months)
•     Average A/P of 30 days (1 month), with a one-time $300,000 investment in plant and equipment financed by a $250,000 12-year promissory note with 10% interest and $50,000 non-interest bearing promissory note payable in 2 years

2. You are the Chief Financial Officer (CFO) of this struggling airline, which faces labor problems, cash flow difficulties, and competition from low-cost carriers. The financial details are:
•     Revenue last year was $400 million
•     Operating costs were $300 million (20% marketing, 25% fuel, and 55% labor)
•     Gross profit was $100 million
•     General management and administration G&A was $100 million
•     Cost of debt was $90 million
•     Net operating loss was $90 million
The company has a cash balance of $40 million and $70 million as untapped reserves of debt. The company has assets of $1 billion ($100 million airport facilities, $600 million aircraft, and $300 million in the value of routes and gate slots). Debts are $900 million ($100 million in long-term debt secured by the value of aircraft, and $800 million in unsecured debt for generic corporate purposes). Assume that no AR or AP for the purposes of this project that ownership could be converted to leases for no additional operating cost and that up to $50 million in airport assets could be sold without reducing airline operations. Although routes/gates can be sold, this will have a corresponding effect on revenue. For example a 10% reduction in gates equals a 10% reduction in revenue. The company has 40 million outstanding shares and anticipates a loss of $2.25 per share.
This year revenues will increase by 5% due to new routes. Operational costs will increase by 20% due to higher fuel and labor costs. G&A costs will increase by 3% with an increase in the cost of living. Debt cost will increase by $10 million due to higher short-term interest rates.
Revise the income and balance sheets for the next year based on the figures.
Using the chart below:

•     Pro-forma income statement
•     Revenues                 
•     Operating costs            
•     Gross profit            
•     G&A                 
•     EBITDA            
•     Cost of debt            
•     Net operating loss       
•     Balance sheet
•     Assets
•     Cash              
•     Physical assets      
•     Net assets              
•     Liabilities
•     Debt              
•     Shareholder equity