Requirements:

1. Prepare the Income Statement of ABC Company as of December 31, 2014

2. Statement of Financial Position of ABC Company as of December 31, 2014

3. Prepare the Cash Flow

Thank you so much in advance!

The following transactions were incurred by ABC Company in 2014. January 2014 A. Incorporators infused P 12.5 M cash in newly organized corporation, ABC Com. a trading company. The par value of the share is P 1.00 B. ABC Company bought land and building for P 6 M cash. The value of the building which has a remaining useful life of 20 yrs. is P 4 M. A full year depreciation for the building can be recognized in 2014. C. ABC company bought fixtures to be used in the operation of the business for P 600,000.00. These are depreciable over 10 yrs. D. ABC Company bought office equipment for P 500,000.00 These are depreciated over 5 yrs. E. ABC company bought two transportation vehicles for P 1.1 M. These are depreciated over 5 yrs. Transactions of ABC for 2014 1. Bought merchandise worth P 18 M. P 1.5 M of which remained unpaid as of December 31, 2014 2. Sold merchandise for P 20 M. The average cost of the merchandise sold is 75% of the sales. Twenty percent of the sale remained uncollected as of December 31, 2014. 3. Paid salaries of employees amounting to P 1.25 M 4. Total utilities incurred for the year is P 280,000.00, P 250,000.00 of which was paid during the year 5. Other operating expenses which were paid in cash amounted to P 350,000.00 6. Tas Rate is 30% Seventy percent of the tax due for the year was paid in 2014. The Balance was paid in the 1" quarter of 2015. Requirements: Prepare the Income Statement of ABC Company as of December 31, 2014 Statement of Financial Position of ABC Company as of December 31, 2014 Prepare the Cash Flow