Balance Sheet

ASSETS 2018 2019 Forecast

Current Assets
Cash 225 250 5.00%
Accounts Receivable 1,080 1,111
Inventories 810 813
Prepaid Expenses 45 50 1.00%
Total Current Assets 2,160 2,224
Non-current Assets
Property, Plant, and Equipment 2,000 2,000
Less: Accumulated Depreciation 410 510
Total Non-current Assets 1,590 1,490
TOTAL ASSETS 3,750 3,714

LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable 675 583 15.00%
Accrued Expenses Payable 225 250 5.00%
Current Portion of Long-Term Debt 200 200
Total Current Liabilities 1,100 1,033
Long-Term Debt 800 600
Total Liabilities 1,900 1,633
Stockholder's Equity
Paid in Capital 750 750
Additional Paid in Capital 500 500
Retained Earnings 600 831
Total Stockholder's Equity 1,850 2,081
TOTAL LIABILITIES AND EQUITY 3,750 3,714
- 0

Income Statement
Sales Revenue ₱ 4,500 ₱ 5,000
Cost of Sales 2,925 3,250
Gross Profit 1,575 1,750
Operating Expenses 975 1,000
EBIT 600 750
Interest Expense 150 150
EBT ₱ 450 ₱ 600
Income Tax 135 180
NET INCOME ₱ 315 ₱ 420
Fixed Operating Expenses 750 750
Variable Operating Expenses 225 250
Total Operating Expenses 975 1000

Property, Plant, and Equipment 2,000

Useful life 20
Annual depreciation 100

Principal 1,000
Interest rate 15%
Time 1
Interest expense 150

Net Income ₱ 315

DPR 60%
Dividends ₱ 189

Retained Earnings, 2018 600

Net Income ₱ 420
Dividends ₱ 189
Retained Earnings, 2019 831
notes
GPM = 35% Cash, PE, AP, AEP %ofsales
AR=80d
I=90d
** Excess financing of P167 million utilized to pay off debts.

Receivable Turnover Ratio 4.5

Inventory Turnover Ratio 4
2019 2020 2021 2022 2023
200 200 200 200 200
600
AEP %ofsales
A)
Balance Sheet
ASSETS 2018 2019 Forecast
Current Assets
Cash 1,050 1,350 1.35% g.
Accounts Receivable 15,200 15,000 h.
Inventories 10,800 16,875 i.
Total Current Assets 27,050 33,225
Non-current Assets
Property, Plant, and Equipment 36,000 41,000
Less: Accumulated Depreciation 7,200 11,300
Total Non-current Assets 28,800 29,700
TOTAL ASSETS 55,850 62,925

LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable 7,850 8831.25 0.10 j.
Accrued Expenses Payable 2,500 2,700 k.
Notes Payable 9,000 -
Current Portion of Long-Term Debt 4,000 4,000
Total Current Liabilities 23,350 15,531
Long-Term Debt 12,000 8,000
Total Liabilities 35,350 23,531
External Financing Needed 12,865
Stockholder's Equity
Capital Stock 15,000 15,000
Retained Earnings 5,500 11,529 l.
Total Stockholder's Equity 20,500 26,529
TOTAL LIABILITIES AND EQUITY 55,850 62,925
- 0

Income Statement
Sales Revenue ₱ 120,000 ₱ 135,000 a.
Cost of Sales 78,000 87,750 0.65 b.
Gross Profit 42,000 47,250
Operating Expenses 33,600 34,100
EBIT 8,400 13,150
Interest Expense 3,930 1,680
EBT ₱ 4,470 ₱ 11,470 f.
Income Tax 1,341 3,441
NET INCOME ₱ 3,129 ₱ 8,029
c. Fixed Operating Expenses 12,000 12,000
Variable Operating Expenses 18,000 21,600
Depreciation Expenses 3,600 500 d.
Total Operating Expenses 33,600 34,100

d. Property, Plant, and Equipment 5,000 36000

Useful life 10 10
Annual depreciation 500 3600

e. Principal 4,000 4,000

Interest rate 12% 15%
Time 1 2
Interest expense 480 1,200

Dividends ₱ 2,000

Retained Earnings, 2018 5,500

Net Income ₱ 8,029
Dividends ₱ 2,000
Retained Earnings, 2019 11,529

B) I would get my additional external financing through bank loans.

2018 2019 Forecast
Notes Payable 9000 12865
3600

Receivable 9
Inventory 8
 TA TL TE
100 40 60
In million pesos %Sales Sales projection for the next three ye
Current Assets 55 27.50% Year 1
Fixed Assets 45 Year 2
Current Liabilities 20 10.00% Year 3
Bank Debt 20
Common Stock 10 par 50
Retained Earnings 10
Sales Revenue 200
Net Income 10
Dividends 5

a)
In million pesos Year 1 %Sales TA TL TE
Current Assets 66 27.50% 111 44 65
Fixed Assets 45 EFN
Current Liabilities 24 10.00%
Bank Debt 20
Common Stock 10 par 50
Retained Earnings 15
Sales Revenue 240
Net Income 10
Dividends 5 The company needs an external funding of P2 million for Year 1.

In million pesos Year 2 %Sales TA TL TE

Current Assets 76 27.50% 121 48 70
Fixed Assets 45 EFN
Current Liabilities 28 10.00%
Bank Debt 20
Common Stock 10 par 50
Retained Earnings 20
Sales Revenue 276
Net Income 10
Dividends 5 The company needs an external funding of P3 million for Year 2

In million pesos Year 3 %Sales TA TL TE

Current Assets 84 27.50% 134 50 60
Fixed Assets 50 5 EFN
Current Liabilities 30 10.00%
Bank Debt 20
Common Stock 10 par 50
Retained Earnings 10
Sales Revenue 304
Net Income 10
Dividends 5 The company needs an external funding of P23 million for Year 2.

b)
In million pesos Year 1 %Sales TA TL TE
Current Assets 66 27.50% 111 44 69
Fixed Assets 45 EFN
Current Liabilities 24 10.00%
Bank Debt 20
Common Stock 10 par 50
Retained Earnings 18.5
Sales Revenue 240
Net Income 10
Dividends 1.5 The company needs to pay off debts worth P2 million due to fund surp

In million pesos Year 2 %Sales TA TL TE

Current Assets 76 27.50% 121 48 77
Fixed Assets 45 EFN
Current Liabilities 28 10.00%
Bank Debt 20
Common Stock 10 par 50
Retained Earnings 27
Sales Revenue 276
Net Income 10
Dividends 1.5 The company needs to pay off debts worth P4 million due to fund surp

In million pesos Year 2 %Sales TA TL TE

Current Assets 84 27.50% 134 50 86
Fixed Assets 50 5 EFN
Current Liabilities 30 10.00%
Bank Debt 20
Common Stock 10 par 50
Retained Earnings 35.5
Sales Revenue 304
Net Income 10
Dividends 1.5 The company needs to pay off debts worth P2 million due to fund surp
ection for the next three years
240
276
304

Retained Earnings, B 10
109 Net Income ₱ 10
2 Dividends ₱ 5
Retained Earnings, E 15

ng of P2 million for Year 1.

Retained Earnings, B 15
118 Net Income ₱ 10
3 Dividends ₱ 5
Retained Earnings, E 20

ng of P3 million for Year 2

Retained Earnings, B 20
110 Net Income ₱ 10
23 Dividends ₱ 5
Retained Earnings, E 25
ng of P23 million for Year 2.

Retained Earnings, B 10
113 Net Income ₱ 10
- 2 Dividends 1.5
Retained Earnings, E 18.5

worth P2 million due to fund surplus.

Retained Earnings, B 19
125 Net Income ₱ 10
- 4 Dividends 1.5
Retained Earnings, E 27

worth P4 million due to fund surplus.

Retained Earnings, B 27
136 Net Income ₱ 10
- 2 Dividends 1.5
Retained Earnings, E 35.5

worth P2 million due to fund surplus.