Statement of Financial Position

December 31, Year 2 and Year 1

(in thousands of dollars)

Year 2

Year 1

Assets

Current assets:

Cash

Php 30

Php 110

Accounts receivable

210

260

Inventory

190

170

Prepaid expenses

70

70

Total current assets

500

610

Plant and equipment, net

810

740

Total assets

Php1,310

Php1,350

Liabilities and Stockholders Equity

Current liabilities:

Accounts payable

Php 140

Php 150

Accrued liabilities

30

30

Notes payable, short term

40

40

Total current liabilities

210

220

Bonds payable

190

240

Total liabilities

400

460

Stockholders equity:

Preferred stock, Php100 par value, 5%

100

100

Common stock, Php2 par value

400

400

Additional paid-in capitalcommon stock

130

130

Retained earnings

280

260

Total stockholders equity

910

890

Total liabilities & stockholders equity

Php1,310

Php1,350

Income Statement

For the Year Ended December 31, Year 2

(in thousands of dollars)

Sales (all on account)

Php1,260

Cost of goods sold

770

Gross margin

490

Selling and administrative expense

400

Net operating income

90

Interest expense

26

Net income before taxes

64

Income taxes (30%)

19

Net income

Php 45

e. Average collection period.

f. Inventory turnover.

g. Average sale period.

Statement of Financial Potion December 31, Year 2 nd Year! (in thousands of dollars) Year 2 Year Assets Current assets Php 3 Php 11 210 190 250 170 Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant and equipment, net 500 610 310 Phell Php1,35 740 Total assets Liabilities and Stockholders' Equity Current liabilities Php 14 Php 15 0 0 30 30 40 40 210 220 190 240 400 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: Preferred stock, Php100 par value, 5% Common stock, Php2 par value Additional paid-in capital-common stock Retained earnings Total stockholders' equity 100 100 400 400 130 130 280 2160 910 890 Phpl 31 Phel 3s Total liabilities & holders' cquity income Statement For the Year Ended December 31, Year 2 in thousands of dollars) Php1.26 2770 Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) 2948989911 490 400 90 26 64 19 Php4 Net income