GE1715

Ronald Varrie G. Bautista

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

Plus Minus
Total Assets on 200A Total Liabilities on 200A ₱86,240.00
₱514,745.00
Total Liabilities on 200B
Total Assets on 200B ₱651,990.00 ₱144,840.00
-As you can see the total assets of
200B is higher in total assets of -As you can see the total liabilities of
200A so that the company is still 200B is higher than 200A but they can
profitable. still profit on that because the difference
is small than their profit.
Total Liabilities and Owner’s
Equity of 200A is (₱514,745) and -In terms of Liabilities the accounts
the 200B is (₱651,990) Payable of 200B (₱107,800) is greater
than 200A (₱53,900) it means the
-The total liabilities and owner’s amount of 200A is lower than 200B it
equity of 200A is lesser than 200B means the interest is lower too

Interesting
-The Capital of Wendy’s services Inc is continuously increasing
that’s why the company the company is still profitable and growing.

-The company’s debt ratio in the 200A is almost 17% Debt ratio
and in 200B is almost 22% Debt ratio so this means the company has
less leverage and still profitable.

MY DECISION

I let the the Wendy’s Services Inc. to loan because as you can see they still profitable and they can manage to
pay the loan. And their company is continue to grow as you can see the asset and liabilities of company is
gives better information to liquidity and solvency position.

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