(6) Inventory (Stocks) 1,520 2,400 2,800
Average Inventory 1520 + 2400 2400 + 2800
2 2
= 1,960 = 2,600
(7) Profit before Interest and Tax:
Profit before Depreciation and
Interest on Term Loan 1,500 2,400
Less: Depreciation 480 600
1 ,020 1,800
(8) Profits available for Equity
Shareholders:
Profit before Depreciation and
Interest on term loan 1,500 2,400
Less: Depreciation, Interest on Term
Loan and Tax 1,200 1,800
300 600
(9) Cost of Goods Sold:
Sales 4,800 7,200
Sales: Profit before Depreciation and
Interest on Term Loan 1,500 2,400
3,300 4,800
(10) Fixed Assets (Net) 1880 1,600 2,000
Average Fixed Assets (Net) 1880 + 1600 1600 + 2000
2 2
= 1,740 = 1,800