TERESITA BUENAFLOR SHOES

INCOME STATEMENT
For the period ended February 28, 2015

Sales 1,332,000
Less Sales Returns and Allowances 141,000
Sales Discounts 11,840 (152,840)
Net Sales 1,179,160
Less Cost of Sales
Merchandise Inventory, Feb. 1, 2015 413,000
Add Net Cost of Purchase
Purchases 668,000
Less Purchases Returns and Allowances (25,000)
Purchases Discounts (7,020)
Net Purchase 635,980
Add Transportation-In 13,000 648,980
Total Goods Available for Sale 1,061,980
Less Merchandise Inventory - Feb. 28, 2015 397,000 664,980
Gross Profit 514,180
Less Operating Expenses
Salaries Expense 102,000
Supplies Expense 58,000
Insurance Expense 2,000
Depreciation Expense-Bldg. 9,000
Depreciation Expense-Equipt 12,000
Transportation Out 4,000
Advertising Expense 6,000
Interest Expense 26,000
Miscellaneous Expense 7,000 226,000
PROFIT 288,180

TERESITA BUENAFLOR SHOES

STATEMENT OF CHANGES IN EQUITY
February 28, 2015

Buenaflor, Capital - Feb. 1, 2015 1,569,000

Add: Profit 288,180
Total 1,857,180
Less Buenaflor Withdrawals 400,000
Buenaflor, Capital - Feb. 28, 2015 1,457,180
 TERESITA BUENAFLOR SHOES
BALANCE SHEET
As of February 28, 2015

ASSETS
Current Assets
Cash 221,180
Account Receivable 428,000
Merchandise Inventory 397,000
Supplies 14,000
Prepaid Insurance 46,000 1,106,180

Noncurrent Assets
Land 460,000

Building 1,750,000
Less Accumulated Depreciation-Bldg. 359,000 1,391,000

Equipment 2,310,000
Less Accumulated Depreciation- Equipt 642,000 1,668,000 3,519,000
TOTAL ASSETS 4,625,180

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Accounts Payable 517,000
Salaries Payable 51,000 568,000

Noncurrent Liabilities
Mortgage Payable 2,600,000

Owner's Equity
Buenaflor, Capital - Feb. 28, 2015 1,457,180
TOTAL LIABILITIES AND OWNER'S EQUITY 4,625,180