Sample Financial Statement of a Limestone Mining Company
Income Statement for the Year Ended December 31, 2023
The limestone mining company reported total revenue of $12.5 million for the fiscal year 2023, driven by increased demand from construction and cement manufacturing industries. Cost of goods sold (COGS) amounted to $7.2 million, primarily consisting of extraction labor, equipment maintenance, and transportation expenses. Gross profit stood at $5.3 million, reflecting a healthy margin of 42.4%.
Operating expenses included administrative salaries ($1.1 million), marketing ($450,000), and regulatory compliance costs ($320,000). Depreciation of mining equipment accounted for $780,000. After accounting for these expenses, operating income reached $2.65 million. Interest expenses on loans totaled $400,000, while non-operating income from land leases added $150,000. Net profit before taxes was $2.4 million, with a corporate tax expense of $600,000. The final net income for the year was $1.8 million.
Balance Sheet as of December 31, 2023
The company’s total assets were valued at $28 million. Current assets included cash ($3.5 million), accounts receivable ($2.1 million), and limestone inventory ($4.8 million). Property, plant, and equipment (PP&E) constituted the largest portion at $16 million after accumulated depreciation of $5 million. Intangible assets such as mining rights were valued at $1.6 million.
On the liabilities side, accounts payable totaled $2.3 million, while short-term loans amounted to $1.7 million. Long-term debt stood at $8 million due to recent machinery upgrades and land acquisitions. Shareholders’ equity included retained earnings of $10 million and common stock worth $5 million, bringing total equity to $15 million.
Cash Flow Statement for the Year Ended December 31, 2023
Operating activities generated $3.2 million in cash flow after adjusting for non-cash expenses like depreciation and changes in working capital. Investing activities saw an outflow of $4 million due to new equipment purchases and mine expansion projects. Financing activities included loan repayments ($1 million) and dividend distributions ($500,000). The net increase in cash was ($800,000), with ending cash reserves at $3.5 million compared to the previous year’s balance of $4.3 million.
Key Financial