Question
JOM Companys balance sheet accounts as of December 31, 2005 and 2004 and information relating to 2005 activities are presented below: 2005 2004 Cash 1,000,000
JOM Companys balance sheet accounts as of December 31, 2005 and 2004 and information relating to 2005 activities are presented below:
2005 2004
Cash 1,000,000 400,000
Short-term investments 1,200,000 -
Accounts receivable, net 2,000,000 2,000,000
Inventory 2,700,000 2,400,000
Long-term investments 800,000 1,200,000
Property, plant and equipment 6,800,000 4,000,000
Accumulated depreciation (1,800,000) (1,800,000)
Goodwill 300,000 400,000
13,000,000 8,600,000
Accounts payable & accruals 2,400,000 2,800,000
Short-term debt 1,800,000 -
Common stock, P25 par 3,500,000 3,000,000
Additional paid in capital 1,500,000 1,000,000
Retained earnings 3,800,000 1,800,000
13,000,000 8,600,000
Other activities during 2005 follow: The net income was P2,900,000. There was a declaration of a cash dividend of P900,000, which was paid in 2005. A machine with a cost of P1,600,000 and a carrying amount of P600,000 was sold for P600,000. JOM sold a long-term investment for P500,000. There were no other transactions affecting long-term investments. JOM also issued 20,000 shares of common stock for P50 per share. The short-term investments consist of treasury bills maturing on June 30, 2005.
The net amount of non-cash income and expenses used to adjust net income is:
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