The following ratios and other data pertain to the financial statements of A. Cuenca Company for the year ended December 31, 2018.

Current Ratio 1.80:1

Acid test Ratio 1.50:1

Working Capital P 320,000

Inventory Turnover (based on ending inventory 8 times

Gross Profit Percentage 40%

Average age of outstanding A/R (based on 360 days) 90 days

Plant assets to stockholders equity 0.08 to 1

Earnings per share P 2.00

Capital Stock, shares outstanding 40,000

Net earnings for the year as a % of capital stock 20% 10%

Bonds payable at the beginning and end of 2018 P200,000

The company has no prepaid expenses, deferred or intangible assets.

Required: Reconstruct the following financial statements:

1. Income Statement for 2018

2. Balance Sheet as of December 31, 2018