After working for a couple of years as a rank-and-file employee, you decided to open up your pharmacy. Your hometown does not have a nearby pharmacy and one has to travel to 3 towns to reach one. With 2,000,000.00 at your disposal, you were convinced that you could make this project work. After three months of operation, you asked for the help of a business consultant to know the status and profitability of your pharmacy. She asked for your SFP, SCI, SCE, and CFS for the first quarter of the year. The following are the transactions that happened during the first quarter of the business.

On August 1, 2019: After working for a couple of years as a rank-and-file employee, you decided to open up your pharmacy. Your hometown does not have a nearby pharmacy and one has to travel to 3 towns to reach one. With 2 million pesos at your disposal, you were convinced you could make this project work.

On August 3, 2019: You were able to scout for a location, 50sqm vacant lot, near the local transport terminal that is also across the street from the local church, priced at 300,000. You immediately contacted the owner of the lot and you were able to secure it. Your childhood friend, Max was a contractor. You commissioned Max to build the pharmacy building with all the proper engineering controls and required structure for a pharmacy for a total of 1 million pesos. Max says it will take 3 months to finish and he will take 50% of the payment to start the project, 25% percent after the 2nd month, and lastly, 25% at the end of the project. Being a pharmacist yourself, you oversaw every step of the building process and make sure everything was in order.

On August 5, 2019: The next on your checklist was to acquire a computer and software to set up the Purchase Order System (POS). You were able to contact Fred, Max's high school varsity teammate, who was a computer engineer. Fred told you that a good set of computers would last 5-7 yrs. would cost around 50,000. Regarding the software, Fred says he knows an IT guy who can program and customize a POS, and it usually takes at least 1 month to prepare the program and around 3 weeks to make adjustments and debugging through trial runs. This would cost you another 100,000 for the software alone, with an additional 5,000 fee for quarterly maintenance, in a yearly contract with the IT guy.

On August 8, 2019: The contract with Max and Fred's IT guy has been finalized after consultation with Alex, your lawyer. The trademark name of "Mabisa Pharmacy" has also been legitimized and is now owned by you. Building permits for a two-story building were also secured.

On August 10, 2019: Construction has started. The expected date of the end is at November 10, 2019.

On September 4, 2019: Anticipating possible additional unforeseen expenses, you decided to ask Karen to pay back the 50,000 she owed. Karen paid 50,000. You used this as additional capital. POS software was up for trial runs and debugging. Major bugs were found.

On September 10, 2019: One month of construction has passed. Max was optimistic that everything was going as planned.

On September 14, 2019: You already finished compiling the list of suppliers and crosschecking their different quotations. You have chosen five suppliers of various products; B.R.B Company, OTW Company, Al Aque & Company, Herb O. Lario, One Like One Order Company. You computed that they would need an initial investment of 300,000 to procure enough products to serve as beginning inventory forecasted to last one quarter of the year. Anticipating additional expenses, you applied for a loan at the local bank.

On September 17, 2019: Bank approves the loan of 500,000, 5 yrs to pay with 1.15% interest.

On October 10, 2019: Two months of construction have passed. Following what is stated in the agreement, you paid 25% percent after the 2nd month of the construction. Also, the POS still had minor bugs.

On October 15, 2019: You began finalizing layout plans with Max. To procure materials for the signages, counters, and shelves an additional 150,000 was needed.

On October 19, 2019: Considering a lead time of 2-3 weeks, depending on the supplier, you proceeded to place the orders for the products. POS was finalized and the product directory was input into the database.

On October 28, 2019: You procured sets of uniforms for the pharmacy personnel, amounting to a total of 10,000.

On November 3, 2019: A typhoon was forecasted. This caused a delay in construction for 2 days.

On November 14, 2019: Building construction was finished including finalization of the pharmacy layout. Supplies were procured including calculator, tablet counter, tablet cutter sphygmomanometer, glucometer and strips, uric acid monitor and strips, lancet along with cleaning materials and other office supplies for printing copies of pertinent laws, and prescription logbooks amounting to a total of 22,000.

On November 15, 2019: Arrangement and labeling of the inventory.

On November 16, 2019: FB blast to launch Mabisa Pharmacy.

On November 17, 2019: Opening of Mabisa Pharmacy.

On November 24, 2019: You hired two pharmacists (15,000/mo) and 2 pharmacy assistants (previously trained and with certification, (10,000/mo) adjusting the pharmacy hours from 6 am-10 pm, open from Monday to Saturday.

On December 12, 2019: Mabisa Pharmacy has secured an MOA with AB (Ako Bayad) company, as a third-party payer to which, reimbursement will be made biannually.

On January 02, 2020: Due to the high demand for cold and cough medicines, you purchased additional inventory amounting to 20,000 and you paid 1,000 for the shipping fee.

On February 22, 2020: You computed a total amount of 50,000 worth of products for the ending inventory.

On February 23, 2020: Around three months of operation of Mabisa Pharmacy, it was able to secure a total of 515,000 in total revenues, averaging 2,200/mo electricity bill, 250/mo water bill.

Statement of Comprehensive Income, Statement of Changes in Equity, Cash Flow Statement, and Statement of Financial Position

The financial statements will be assessed based on the accuracy and organization of the reports.