Total P 111,000 1I3,500 22,500 Working Capital P 199,000 119,500 13,000 92,500 Decrease in Working Capital 29,500 92,500 92,500 PECAN COMMERCIAL Statement of Changes in Financial Position For the Year Ended December 31,2016 SOURCES OF WORKING CAPITAL From Operations Net Income For The Year P 80,000 Add : Depreciation Expense 22,500 102,500 From proprietor's investment 25,000 Total Sources of Working Capital P 122,500 USES OF WORKING CAPITAL Acquisition of property P 132,000 Payment of Long-term Debt 20,000 Withdrawal by Proprietor 50,000 Total Uses of Working Capital 202,000 Decrease in Working Capital P 79,500 Study carefully the schedule and statement prepared for Pecan Commercial for the year ended December 31, 2015 . 'Nhat were the business transactions undertaken in 2015 that you think are inappropriate ? What suggestions oan you make to improve the financing and invest - ment policies of the fin'n ? ManagementCase 5 Tomas Lopez operates a 2-4 -hour burges station along Roxas Boulevard . Two other burger stations are located within the area. Sinoe business is becoming highly competitive , Tomas plans to reduce the price of his burgers by 5% and increase sales volume by 20%. This way he hopes to increase his net income substantially . Tom's burgers sell at P 25.00 each . The following is a summary report of the operations of Tom's burger station for the past two years : This Year Last Year Net Sales 912,500 232,500 Cost of Sales 542,500 409,500 Gross Profit 365,000 328,000 Operating expenses 223,125 220,500 Net income P 136,325 152,500 You have been asked to help Tom arrive ata decision . Other than the data provided above ,what other additional information will Tom need for him to make agood decision '9 T anagement Luis Canlas operates a small bakery . On the advice of a friend , he opened a bank account where he deposits all his receipts and from which he pays all his bills. He does not keep any record of business operations except what is shown in his checkbook _ At the end of every month. If the balance is larger ,t hen he assumes that his business made a prot _ If the balance is smaller .then he assumes that his business incurred a loss. a. ls a comparison of cash balance at the beginning and the end of any period an indication of the results of business operations? b. It is possible for a cash balance to increase and yet d1e bakery sustains a loss ? c. What infonnation will Luis need if he really wants to determine whether his business made a profit or not? I ManagementCase 2