Problem 2-4

Relax Company
Statement of Financial Position
December 31, 2017

ASSETS
Currents Assets
Cash P 400,000
Trade and other receivables (1) 750,000
Inventories 1,000,000
Prepaid expenses 100,000
Total Current Assets 2,250,000

Non-current Assets
Property, plant, and equipment (2) 5,600,000
Investment in associate 1,300,000
Intangible assets (3) 350,000
Total Non-current Assets 7,250,000

TOTAL ASSETS P 9,500,000

LIABILTIES ANS SHAREHOLDER’S EQUITY

Current Liabilities
Trade and other payables (4) 1,350,000
Mortgage note payable – current portion 400,000
Total Current Liabilities 1,750,000

Non-current Liabilities
Mortgage payable -remaining portion 1,600,000
Bank loan payable, due 6/30/2019 500,000
Total Non-current Liabilities 2,100,000

Shareholder’s Equity
Share capital 3,000,000
Reserves (5) 1,400,000
Retained earnings – unappropriated 1,250,000
Total Shareholder’s Equity 5,650,000

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY P 9,500,000