January 13, 2012
Step 1: Add the old bonds issued with the new issuance
Step 2: Calculate the interest payment
Interest payment on old bonds
Interest payment on new bonds
Total Interest Payment- sum the interest payments on both the bonds
Thus, we form our Debt and Interest schedule. We then include this in our Profit and Loss statement along with our Fixed Asset schedule. Finally, now our Profit and Loss statement (or Income Statement) is complete!
You can take a look at the complete Income statement here. Now you can see whether our Chocolates are a sweet deal or not!!