BM2211

Names RAGASA STEVEN JOHN M. Section BSHM 3.1A 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

Wendy’s service Inc. shows the The liabilities in 200b goes up a Wendy’s service Inc. provides the  The income statement for 200A
capital contribution of the owner little which means this could be measures of the wealth that and 200B looks the same since
and the outside lender. simply signify the business is created for the owner. It also they earned service revenue of
It also shows all the lists of struggling. shows the net income for the 90.000.00 and 60.000.00
assets information, gains, profit entire year that shows whether the respectively. Consider their net
and business claims. business get’s benefit or loss. sales in 200A and 200B, since
they got 550,000.00 in 200B and
250,000.00 in 200A. The amount
of 200A is currently declining, so
this indicates a decrease in the
amount of 200A.

Interesting Interesting
They still gaining but their service business doesn’t have any You’ll see that income statement have both increasing and
assets that can have money to pay if they’re ever able to lend decreasing amount in 200A and 200B thus, this is not a reason to
reject Wendy’s Services Inc.

My Decision

Despite the fact that Wendy's Services Inc. is struggling and the business already bankrupt due to their
loans I believe Shark Loans must accept Wendy’s Services Inc’s request. With the right management skills
and techniques, they can manage it much better.

07 Activity 1 *Property of STI

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 BM2211

Names Section Date

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

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting
16
details, and factual scenarios
Organization Expressed the points in a clear and
of Ideas logical arrangement of ideas in the 4
paragraph
TOTAL 20

07 Activity 1 *Property of STI

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