Problem 1(Statement of Financial Position)

Required:

a. Total Liabilities & Equity

Total Assets = Total Liabilities + Common Equity

Total Liabilities & Equity

2,500,000
1,000,000
1,500,000
P2,500,000

b. Balance of Current assets

Current Assets = Total Assets - Net plant & equipment

Total Liabilities & Equity

2,500,000
-2,000,000
500,000

c. Balance of Current Liabilities

Current Liabilities = Total Liabilities - Long-Term Debt

Current Libilities
2,500,000
-1,500,000
-750,000
250,000

d. Amounts of accounts payable and accruals

Current Liabilities [-Notes Payable] = Accounts Payable + Accruals + Notes Payable [-Notes Payable]

Accounts Payable &

Accrual
2,500,000
-1,50,000
-750,000
-1,500,000
100,000

e. Net Working Capital

Net Working Capital = current assets - current liabilities

Net Working Capital

500,000
-250,000
250,000

f. Net operating working capital

Net operating working capital = net working capital + interest bearing current liabilities

Net Working Capital

250,000
150,000
P400,000