STATEMENT OF FINANCIAL POSITION

JANUARY 1, 2019 DECEMBER 31, 2019

• CASH 3,500 5,500
• ACCOUNTS RECEIVABLE 4,200 3,600
• INVENTORY 5,200 6,600
• LAND 8,200 12,200
• BUILDING & EQUIPMENT 35,700 48,700
• ACCUMULATED DEPRECIATION 6,000 8,700
• TOTAL ASSETS 50,800 67,900

• ACCOUNTSPAYABLE 5,000 3,200
• SALARIES PAYABLE 1,500 1,800
• BONDS PAYABLE (10%) 7,000 15,000
• ORDINARY SAHRE, 10 PAR 8,000 9,000
• PAID IN CAPITAL IN EXCESS OFPAR 16,000 19,000
• RETAINED EARNING 13,300 19,900
• TOTAL LIABILITIES AND SHE 50800 67900

INCOME STATEMENT INFORMATION

Sales 80,000.00 Cost of sales 48,600.00 Gross Profit 31,400.00 Operating Expenses Depreciation Expense 3,400.00 Other Expenses 15,900.00 19,300.00 Operating Income 12,100.00 Other revenues and expenses Gain on sale of equipment 700.00 Interest expense 800.00 100.00 Income before income taxes 12,000.00 Income tax expense 3,600.00 Net Income 8,400.00

RETAINED EARNINGS INFORMATION

Retained Earnings, Beg 13,300.00 Add: Net Income 8,400.00 Total 21,700.00 Less: Dividends 1,800.00 Retained Earnings, End 19,900.00

SUPPLEMENTAL INFORMATION

a. Equipment was purchased for cash at a cost of P15,200

b. Ten year bonds payable with a face value of P8,000 were issued for P8,000 at the year end

c. Land was acquired through the issuance of 100 shares of P10 par ordinary shares when the stock was selling at a market price of P40 per share d. Equipment with a cost of P2,200 and a book value of P1,500 was sold for P2,200 cash

COMPUTE FOR THE STATEMENT OF CASH FLOWS UNDER DIRECT AND INDERECT METHOD WITH SOLUTIONS.