BM2211

Name PURGANAN, MARION EMERSON M. Section BSTM 3A Date

P-M-I CHART
Instruction: Respond to the scenario below by using the P-M-I Chart. Write your answers in the spaces
provided. (20 points)
• In the Interesting box, write 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 to build their fifth branch in Pasay. The company submitted its balance
sheet 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

Company's sales are The corporation is in The income, earnings, and In contrast to 2019, there is
apparent, that's why danger of going bankrupt loss of the company are a noticeable drop in sales in
the earnings is likewise clear. due to its financial shown here. 2020. The company exhibits
situation. inconsistencies.

Interesting Interesting
To secure a business, I would never advise a shark The financial statement will be used to assess Wendy
loan. Still, in my opinion, a bank to company Services Inc.'s net income for the year.
transaction is ideal.

My Decision
If I owned a business, I wouldn't accept Wendy's or at the least, have a partnership. Because the business is not
successful, this would result in revenue loss.
 BM2211

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
Utility expense ₱60,000.00 ₱60,000.00
Total expenses ₱350,000.00 ₱350,000.00
Net Income ₱250,000.00 ₱550,000.00