Question
1. Forecast the in four years (use Year 1 and so on as indicator) 2. Currents assets increased by 2% per annum. 3. Property and
1. Forecast the in four years (use Year 1 and so on as indicator)
2. Currents assets increased by 2% per annum.
3. Property and equipment:
- Land and building increased by 1.5% per annum;
- No accumulated depreciation of Php 5000 in 2nd to 4th year
4. Other assets decreased by Php 200 yearly
- No accumulated amortization from 2nd to 4th year
5. Current liabilities will be increased by 2% yearly
6. Long-term debt decreased by Php 10,000 per annum.
7. Shareholder's Equity:
- Common stock increased by 2% yearly
- Additional paid-in capital increased by 2%
- Retained earnings increased by 2%
- No transaction of treasury for 2nd up tp 4th year.
ASSETS Current assets Cash and cash equivalents Accounts receivable Inventory Prepaid expense Investments Total current assets BALANCE SHEET December 31, 2100 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 100,000 Accounts payable 20,000 Notes payable 15,000 Accrued expenses 4,000 Deferred revenue 10,000 Total current liabilities 149,000 Long-term debt 30,000 10,000 5,000 2,000 47,000 200,000 Total liabilities 247,000 Property and equipment Land Buildings and improvements Equipment Less accumulated depreciation 24,300 250,000 50,000 (5,000) Shareholders' Equity Common stock Additional paid-in capital Retained earnings Treasury stock 10,000 20,000 197,100 (2,000) Other assets Intangible assets Less accumulated amortization 4,000 (200)Step by Step Solution
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