The beginning and ending balances in each of the balance sheet accounts of the Mexico Company are as follows: Dec. 31, 2019 Dec. 31, 2020 P260,000 Cash P100,000 Accounts receivable Inventory Prepaid insurance Total current assets Land 180,000 360,000 400,000 460,000 50,000 30,000 P890,000 P950,000 P1,200,000 P1,500,000 Plant & equipment 1,000,000 1,400,000 Accumulated depreciation (400,000) (500,000) Total non-current assets P1,800,000 Total assets P2,690,000 P2,400,000 P3,350,000 Accounts payable P 300,000 P 260,000 Accrued operating expenses 200,000 Interest payable Income taxes payable Total current liabilities Bonds payable 20,000 122,000 P 642,000 600,000 132,000 30,000 150,000 P 572,000 700,000 Common stock 800,000 Retained earnings Total liabilities & equity The forecast income statement for the Mexico Company for 2020 is presented below: 648,000 P2,690,000 1,100,000 978,000 P3,350,000 Sales Cost of sales Gross profit Operating expenses Income before interest & tax Interest expense Income before tax Income tax Net income P2,500,000 1,400,000 P1,100,000 300,000 P 800,000 50,000 P 750,000 300,000 P 450,000