Cobalt Property — Year 1

Part 1 of 3 — where the Cobalt Property Group case begins

Share issuance, a bank loan, a PP&E purchase (10-year life), inventory bought and sold partly on credit, expenses, tax at 30%, and a dividend — all assembled into a first-year Income Statement whose Net Income flows straight into the Balance Sheet's Retained Earnings.

Every transaction hits at least two places in the financial statements, which is exactly why the books balance.

Using the calculator

1. Enter Year 1's transactions in the yellow cells — shares issued, borrowing, interest, PP&E and its useful life, inventory bought/sold and cash portions, expenses.
2. The Income Statement computes Net Income; it flows automatically into Retained Earnings on the Balance Sheet.
3. Check the balance-sheet Difference row is zero before moving to Part 2.