ABC Company

Income Statement (in millions)

For the year ended December 31, 2021

Sales Php135,000.00

Cost of Goods Sold 101,250.00

Gross Profits 33,750.00

Operating Expenses

Selling expenses 4,500.00

General and administrative expense 3,375.00

Depreciation and amortization expense 6,750.00

Total operating expense 14,600.00

Net operating income (EBIT, or Earnings before interest & taxes) 17,625.00

Interest Expense 3,375.00

Earnings before Taxes (or Taxable Income) 15,750.00

Income Taxes (or Tax Expense / Tax Liability) 5,512.50

Net Income Php10,237.50

Additional Information:

Dividends paid to stockholders during 2021 Php2,250.00

Number of common shares outstanding 90.00

Earnings per share (EPS) 114.00

Dividends per share 25.00

 ABC Company

Balance Sheet (in millions)

December 31, 2019 and 2021

2019 2021

Cash Php4,725.00 Php4,500.00

Accounts Receivable 6,975.00 8,100.00

Inventory 11,475.00 18,900.00

Other current assets 675.00 675.00

Total current assets 23,850.00 32,175.00

Gross plant and equipment 83,475.00 92,250.00

Less: accumulated depreciation 19,125.00 25,875.00

Net plant and equipment 64,375.00 66,350.00

Total Assets 88,200.00 98,550.00

Accounts Payable Php9,225.00 Php9,450.00

Accrued Expenses 2,250.00 2,250.00

Short-term notes 3,150.00 2,700.00

Total current Liabilities 14,625.00 14,400.00

Long-term debt 36,000.00 38,587.50

Total liabilities 50,625.00 52,987.50

Common stockholders' equity

Common stock-par value 2,250.00 2,250.00

Paid-in capital 16,200.00 16,200.00

Retained earnings 19,125.00 27,112.50

Total common stockholders' equity 37,575.00 45,562.50

Total liabilities and stockholders' equity 88,200.00 98,550.00