Name: Patrice R.

Barquilla Subject: Business Finance

LRN: 112508080007 Grade & Section: 12- Gandionco

1. Prepare a multi-step income statement for the retail company, ABC, for the year ending
December 31, 2014 given the information below:
Advertising expenditures ₱ 68,000
Beginning inventory 256,000
Depreciation 78,000
Ending inventory 248,000
Gross Sales 3,210,000.00
Interest expense 64,000
Lease payments 52,000
Management salaries 240,000
Materials purchases 2,425,000
R&D expenditures 35,000
Repairs and maintenance costs 22,000
Returns and allowances 48,000
Taxes 51,000.00

ABC Retail Company

Income Statement
For Year -Ended December 31, 2014

Revenues:
Gross Sales ₱ 3,210,000.00
Returns & Allawance (48,000.00)
Net Sales ₱ 3,162,000.00

Cost of Sales:
Beginning Inventory ₱ 256,000.00
Materials Purchases 2,425,000.00
Total Goods Available For Sale 2,681,000.00
Ending Inventory (248,000.00)
Cost of Goods Sold ₱ 2,433,000.00

Gross Profit ₱ 729,000.00

Operating Expenses:
Advertising Expenditures ₱ 68,000.00
 Depreciation 78,000.00
Lease Payments 52,000.00
Management Salaries 240,000.00
R&D Expenditures 35,000.00
Repairs and Maintenance Costs 22,000.00
Total Operating Expenses ₱ 495,000.00

Operational Profit ₱ 234,000.00

Other Expenses:
Interest Expense ₱ 64,00.00
Total Other Expenses ₱ 64,000.00

Net Income Before Tax ₱ 170,000.00

Taxes 51,000.00

Net Income 119,000.00

Date: April 12, 2021
Name: Patrice R. Barquilla Subject: Business Finance
LRN: 112508080007 Grade & Section: 12- Gandion

EVALUATION
1. Indicate whether the following items would appear on the income statement (IS),
or balance sheet (BS).
A. BS Office Supplies
B. BS Accounts Payable
C. BS Computer Equipment
D. IS Commission Fees Earned
E. IS Salaries Expense
F. BS B. So, Capital
G. BS Accounts Receivable

2. Using the following accounts from the retail store, A-Mart Incorporated’s income
statement for the year ending in December 31, 2013, answer the questions below.
Note that all figures are in millions.
Cost of goods sold     PHP600
Lease payments     30
Advertising     20
Taxes       35
Repairs and maintenance expenses 40
Management salaries   100
Net sales       1,000
Depreciation     60

A-Mart Incorporated's
Income Statements
Tuesday, December 31, 201

Sales:
Net Sales ₱
Less:Cost of goods sold
Gross Profit

Operating Expense
Lease payments ₱ 30.00
Advertising 20.00
Repairs and maintenance expenses 40.00
 Depreciation 60.00
Total Operating Expense ₱

Operating Income ₱

Non-Operating Expense
Taxes ₱ 35.00
Management salaries 100.00
Total Non-Operating Expense ₱

Net Income ₱

A. A-Mart’s gross profit is PHP 400.00

B. A-Mart’s operating profit is PHP 165.00.
C. A-Mart’s net profit is PHP 115.00.
 Subject: Business Finance
Grade & Section: 12- Gandionco Date: April 12, 2021

A-Mart Incorporated's
Income Statements
Tuesday, December 31, 2013

1,000.00
600.00
400.00
150.00

150.00

135.00

115.00
Name: Patrice R. Barquilla
LRN: 112508080007

3. Using the following accounts from the A-Mart, Incorporated’s balance sheet for the year
ending December 31, 2013, answer the questions below. Use cash as a plug figure. Note
that all figures are in million.
Current portion of L.T. Debt   PHP60
Leasehold improvements   300
Accrued expenses     40
Accumulated depreciation   200
Gross fixed assets     900
Accounts payable     90
Inventories     190
Common stock (PHP1.00 par) 400
Short-term bank loan     20 20
Net accounts receivable   100
Long-term bank loan     600
Retained earnings     200
Cash       ???

A-Mart Incorporated
Balance Sheet
December 31,2013
ASSETS
Cash
Inventories
Net Accounts Receivable
Current Assests

Gross fixed assets ₱ 900.00

Accumulated depriciation 200.00
Leasehold improvements
Total Assests

LIABILITIES AND OWNERS EQUITY

Current portion of L.T. Debt
Accrued Expense
Accounts Payable
Short-term bank loan
Current Liabilities

Long-term bank loan

Total Liabilities

Common stock (PHP1.00 par)

Retained earnings
Total Liabilities and Equity

A. A-Mart’s current assets are PHP 410.00

B. A-Mart’s current liabilities are PHP 210.00
C. A-Mart’s total assets are PHP 1,410.00
D. A-Mart’s total liabilities are PHP 810.00
E. A-Mart’s total stockholder’s equity is PHP 600.00
Subject: Business Finance
Grade & Section: 12- Gandionco Date: April 12, 2021

₱ 120.00
190.00
100.00
₱ 410.00

₱ 700.00
300.00
₱ 1,410.00
₱ 60.00
40.00
90.00
20.00
₱ 210.00

600.00
₱ 810.00

₱ 400.00
200.00
₱ 600.00