TOTAL NET INCOME:

ASSETS: 200A: 200A:EXPENSES

P514,745 200A: P350,000
200A: 200B: P250,000 200A:INCOME
P514,745 P651,990 200B: P250,000
200B: P550,000
P651,990 The Owner’s In 200A, the
Equity and Total expenses are higher
Liabilities are than the income
same as the total
assets.

In 200B the income is much higher than

the expenses
Total Assets, Liabilities and Owners Equity of
200A and 200B are equal 200B:EXPENSES
P350,000
200B:INCOME
P550,000

The company should make the statement of financial position as basis

whether Wendy's services Inc. should be rejected or not. If they accept
Wendy's Services Inc., it should maintain its earnings.