GE1715

Alcantara, Melroe Adriane M.

BSA 103

P-M-I CHART

Instruction: Respond to the scenario below by using the P-M-I Chart. Write your answers on the spaces
provided.

 In the Interesting box, write down some facts about the specific financial statement.

Scenario: Shark Loans received a request for a construction loan from Wendy Services Inc. This
construction loan will be used for the building of their fifth branch in Pasay. The company submitted their
statement of financial position and income statement. Help Shark Loans choose which financial
statement they would use as a basis on whether they will accept or reject Wendy Services Inc.’s request.
Refer to Page 2. Justify your decision.

Response 1: Statement of Financial Position Response 2: Income Statement

Plus Minus Plus Minus

 You can see in this  You can’t see the
statement their annual profit of the
liability and assets so
it means you can see company and can’t
here the ability of the estimate if the
firm to pay their company is
liability profitable
 You can use here the
Current Ratio, Quick
Ratio, Debt Ratio,
Stockholder’s Ratio to
determine the
companies ability to
pay liabilities

Interesting Interesting
 The result in current ratio in 200B is 4.5 which
is a good sign.
 The quick ratio of the company in a year of
200B is 5.42
 Companies debt ratio in a year 200B is 0.22
 And the stockholders ratio in 200B is 0.78

My Decision
I let Wendy Services Inc. to borrow money from our company. A a results in their ratio they can pay our
company in right time. All of the results shows a good sign for a creditors to let the company loan a
money.

07 Activity 1 *Property of STI

Page 1 of 2
 WENDY SERVICES INC.
Balance Sheet
December 31
200A 200B
Assets
Cash ₱166,320.00 ₱332,640.00
Accounts Receivable 119,350.00 59,675.00
Office Supplies 5,775.00 5,775.00
Prepaid Insurance 15,400.00 15,400.00
Office Equipment 261,800.00 300,000.00
Accumulated Depreciation 53,900.00 207,900.00 61,500.00 238,500.00
Total Assets ₱514,745.00 ₱651,990.00

Liabilities and Owner's Equity

Accounts Payable ₱53,900.00 ₱107,800.00
Salary Payable 9,240.00 9,240.00
Unearned Revenue 23,100.00 27,800.00
Total Liabilities ₱86,240.00 ₱144,840.00

B. Sia-Ko, Capital 428,505.00 507,150.00

Total Liabilities and Owner's Equity ₱514,745.00 ₱651,990.00

WENDY SERVICES INC

Income Statement
December 31
200A 200B
Revenue:
Service Revenue ₱600,000.00 ₱900,000.00
Expenses:
Equipment rental expense ₱200,000.00 ₱200,000.00
Wages expense ₱90,000.00 ₱90,000.00
Utilities expense ₱60,000.00 ₱60,000.00
Total expenses ₱350,000.00 ₱350,000.00
Net Income ₱250,000.00 ₱550,000.00