Manny Company

Manny Company provided the following account balances on December 31, 2X14, which had been adjusted except for income tax expense.

Cash

675,000

Accounts receivable (net)

2,695,000

Inventory

2,185,000

Property, plant, and equipment (net)

10,245,000

Accounts payable and accrued liabilities

1,800,000

Income tax payable

1,500,000

Deferred tax liability

750,000

Share capital

2,500,000

Share premium

3,000,000

Retained earnings, January 1

3,350,000

Net sales and other revenue

15,000,000

Cost and expenses

10,000,000

Income tax expense

2,100,000

Total 27,900,000

Total 27,900,000

The accounts receivable included P1,000,000 due from a customer and payable in quarterly installments of P125,000. The last payment is due December 30, 2X16. During the year, estimated tax payment of P600,000 was charged to income tax expense. The income tax rate is 30% on all types of income.

Required:Compute for the balances of the following on December 31, 2X14.

1.Total current assets

2.Total current liabilities

3.Retained Earnings