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Indirect Method
Assignment
The comparative balance sheet of Aragorn Company for the year ended December 31, 2016 and 2015, is
as follows:
Dec. 31, 2015 Dec. 2016
ASSETS
Cash P360,920 P443,240
Account receivable (net) 592,200 665,280
Inventories 1,022,560 887,880
Prepaid expenses 25,200 31,640
Land 302,400 302,400
Buildings 1,134,000 1,713,600
Accumulated Depreciation – buildings (414,540) (466,200)
Machinery and equipment 781,200 781,200
Acc. Dep - machinery and equipment (191,520) (214,200)
Patents 112,000 106,960
Total Assets P3,724,420 P4,251,800