2006 50000 20 460002007 60000 23

lifo inv 6,351.00 lifo reserve 2,403.00 2,345.00 58.00

lifo fifo fifo 8,754.00 16000

1151810000 1840000 30000

fifo 30,000.00 lifo 20000

10,000.00

cogs lifo 29549change lifo (58.00)

29491

1 2 3 4 5 6

300 200 100 0300 200 100 0

ppeblance 300 200 100 0300

3 3 3 3 3 3

depreciation 100 200 300 300 200 0expense 300 300 300 300 300

exp r&d costs -5000 CFOcapitalize amorrtizati -500 CFI

ddbYear Cost Depreciation Rate

1 $100,000 $20,000 40%2 $60,000 20% 40%3 $36,000 40%4 $21,600 40%5 $12,960 40%

a 5b 10c 15d 20

20

cash 50ppe 500total asset 550

revaluation -50

cash 50ppe 450

500

5000 -500 500-5000

Depreciati AccumulateBook Value$40,000 $40,000 $60,000 $24,000 $64,000 $36,000 $14,400 $78,400 $21,600

$8,640 $87,040 $12,960 $2,960 (*) $90,000 $10,000

5184

gppe nbv depreciation200 40100150

501000 300 700

0.7 14

debt 300 1.2eq 250

550

-50

debt 300 1.5eq 200

500

Tax Reporting Financial ReportingTaxable Base Book ValueDepreciation 1 Depreciation 2Taxable Income Financial Income

CashPPE

Permanent vs. Temporary Items Deferred Tax AssetsNominal vs. Effective Tax Rate TAValuation Allowance

Debt50 66.6666666667 Income Taxes Payable20 30% Deferred Tax Liabilities

Total Liabilities15

5 Equity

TLE

2010 2011Financial Reporting charity income $ 500 $ 500 Tax Reporting charity 300 300Difference 200 200 Tax Rate 30% 30% Deferred Tax Income 60 60

Financial Statements 2010 2011Profit Before Tax 1000 1200

Nominal Tax Expense 300 360Deferred Tax Income 60 60 Effective Tax Expense 240 300 Effective Tax Rate 24% 25%

201550 2015

100 Revenues 200Deferred Tax Assets 20 COGS 160

170 Gross Margin 40

SGA 550

Income Taxes Payable 10 EBT 35Deferred Tax Liabilities 40

100 tax rate 30%Income Tax 24.5

70Net Income 10.5

170

2012 2013 2014 2015 $ 500 $ - $ - $ - 1500

300 300 300 0 1500200 -300 -300 0

30% 30% 30% 30% 60 (90) (90) -

2012 2013 2014 20151400 1600 1800 2000

420 480 540 600 60 (90) (90) - 360 570 630 600

26% 36% 35% 30%

Sheet1Sheet3Sheet4Sheet5Sheet2