FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2

GROUP ACTIVITY: STATEMENT OF CASH FLOWS

The following are the financial statements from Mister Clean Laundry Services:

Mister Clean Laundry Services

Balance Sheets
2020 2019
Current Assets
Cash Php 281,247 Php 33,000
Accounts Receivable 191,500 192,000
Merchandise Inventory 397,000 413,000
Supplies 14,000 51,000
Prepaid Insurance 44,500 48,000
Total Current Assets 928,247 737,000

Non-current Assets
Land 460,000 460,000
Laundry Equipment Php 1,900,000 Php 1,750,000
Less: Accumulated Depreciation - Laundry Equipment 359,000 1,541,000 350,000 1,400,000
Building 2,310,000 2,310,000
Less: Accumulated Depreciation - Building 647,500 1,662,500 630,000 1,680,000
Dry Cleaning Equipment 165,000 85,000
Less: Accumulated Depreciation - Dry Cleaning Equipment 11,000 154,000 5,500 79,500
Total Non-current Assets 3,817,500 3,619,500

Total Assets Php 4,745,747 Php 4,356,500

Liabilities
Current Liabilities
Accounts Payable 44,000 108,000
Notes Payable 25,000 0
Total Current Liabilities 69,000 108,000

Non-current Liabilities
Mortgage Payable 2,600,000 2,600,000
Total Non-current Liabilities 2,600,000 2,600,000

Owner's Equity
Lim-Wilmot, Capital 2,076,747 1,648,500

Total Liabilities and Owner's Equity Php 4,745,747 Php 4,356,500

 Mister Clean Laundry Services
Income Statement
For the Year Ended 2020

Net Sales
Gross Sales Php 1,288,600
Less: Sales Returns and Allowances 121,000
Sales Discounts 27,488
Net Sales Php 1,140,112

Cost of Goods Sold

Merchandise Inventory, beginning 413,000
Net Cost of Purchase 484,365
Goods Available for Sale 897,365
Less: Merchandise Inventory, end 397,000
Cost of Goods Sold 500,365
Gross Profit 639,747

Operating Expenses
Transportation Out 4,000
Advertising Expense 6,000
Salaries Expense 50,000
Depreciation Expense - Laundry Equipment 9,000
Depreciation Expense - Dry Cleaning Equipment 5,500
Depreciation Expense - Building 17,500
Supplies Expense 63,000
Insurance Expense 3,500
Miscellaneous Expense 7,000
Total Operating Expense 165,500
Operating Profit 474,247
Less: Interest Expense 26,000
Net Profit Php 448,247

Mister Clean Laundry Services

Statement of Changes in Owner's Equity
For the Year Ended 2020

Lim-Wilmot, Capital, 01/01/2020 Php 1,648,500

Add: Additional Investments 230,000

Net Profit 448,247
Total 2,326,747
Less: Lim-Wilmot, Withdrawals 250,000
Lim-Wilmot, Capital, 12/31/ 2020 Php 2,076,747
Note:
1. The owner have invested additional Laundry Equipment and Dry Cleaning Equipment
into the business during the year, Php 150,000 and Php 80,000 respectively.

Required:
1. Prepare the Statement of Cash Flows for Mister Clean Laundry Services.