SENIOR HIGH SCHOOL

TASK PERFORMANCE

Business Finance

Name: Cortez, Franchesca F. Score:

Section: ABM 301 Date: Nov. 16, 2020

Part I. Problems.

Show your solution.

Direction: Compute for the missing amounts.

Manufacturing costs for ABM Company for selected months are as follows. (14 items x 3)

May August November

Beginning work in process P 80,000 P 30,000 1. P 98,000

Direct materials used 280,000 190,000 155,000

Direct labor 195,000 170,000 135,000 2.

Factory overhead 250,000 3. 150,000 90,000

Total manufacturing costs 725,000 510,000 380,000

Total cost of goods put into process 805,000 4. 540,000 478,0005.

Ending work in process 95,000 65,000 6. 93,000 7.

Cost of goods manufactured 710,000 8. 475,000 385,000

Beginning finished goods 120,000 9. 38,000 75,000 10.

Cost of goods available for sale 830,000 513,000 11. 460,000

Ending finished goods 110,000 12. 75,000 105,000 1 3.

Cost of goods sold 720,000 438,000 14. 355,000

Prepare a horizontal analysis showing the percentage changes for 201B as compared with 201A. (13 pts.)

201B 201A

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 Below is the summarized financial information of Jollibee Foods
Amount Change Percent
Cash 290,000 150,000
140,000 93.33%
Marketable
1,000,000 850,000
Securities 150,000 17.65%
Accounts
1,000,000 650,000 350,000 53.85%
Receivable, net
Inventories 500,000 750,000 -250,000 -33.33%
Prepaid expenses 90,000 100,000 -10,000 -10%
Land 700,000 500,000
200,000 40%
Building, net 500,000 550,000
Machinery and -50,000 -9.09%
1,500,000 1,700,000
Equipment, net
-200,000 11.76%
Notes Payable,
412,500 100,000
Trade 312,500 312.5%
Accounts Payable,
750,625 610,000 140,625 23.05%
net

Expenses Payable 51,250 40,000 11,250 28.13%

Long-term Notes 2,365,625 2,500,000 -134,375 -5.38%

Owner's Capital 2,000,000 2,000,000 0 0

Corporation for 2013 and 2012

2013 2012

Revenues 80,282,769,199.00 71,059,039,154.00

Cost of Sales 65,284,763,064.00 58,435,498,743.00

Gross Profit 14,998,006,135.00 12,263,540,411.00

Operating Expenses 9,006,909,740.00 8,278,522,626.00

Operating Income 5,931,096,395.00 4,345,017,785.00

Interest Expense 152,920,028.00 206,012,700.00

Income before taxes 6,245,514,598.00 4,861,699,703.00

Income tax expense 1,522,708,527.00 1,149,704,051.00

Net Income 4,722,806,527.00 3,711,995,652.00

Gross Accounts Receivables-Trades 3,128,358,963.00 2,714,763,623.00

Trade inventories 3,509,791,192.00 2,616,182,585.00

Current Assets 18,384,176,985.00 15,623,201,915.00

Property, Plant and Equipment 11,772,440,510.00 11,059,464,042.00

Total Noncurrent Assets 27,642,457,128.00 26,144,928,795.00

Total Assets 46,026,634,133.00 41,768,130,710.00

Trade accounts payable 6,006,639,836.00 4,717,064,438.00

Current Liabilities 15,618,612,677.00 16,621,233,643.00

Noncurrent liabilities 7,047,081,359.00 3,415,595,039.00

Total liabilities 22,665,694,036.00 20,036,827,682.00

Total equity 23,360,940,077.00 21,731,303,028.00

Operating Cash Flows 9,219,500,197.00 8,237,963,925.00

Compute the following financial ratios for 2013. (7 items x 2)

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 1. Current Ratio
Current Assets = 18,384,176,985.00
Current Liabilities = 15,618,612,677.00
18,384,176,985.00/15,618,612,677.00
= 1.2
2. Quick ratio
Current Assets = 18,384,176,985.00
Inventory = 3,509,791,192.00
Current Liabilities = 15,618,612,677.00
18,384,176,985.00 – 3,509,791,192.00
15,618,612,677.00
= .95
3. Debt Ratio
Total Liabilities = 22,665,694,036.00
Total Assets = 46,026,634,133.00
22,665,694,036.00/46,026,634,133.00
= .49 or 49%
4. Equity Ratio
Total Equity = 23,360,940,077.00
Total Assets = 46,026,634,133.00
23,360,949,077.00/46,026,634,133.00 = .51 or 51%
5. Times and Earned Ratio
Operating Income = 5,931,096,395.00
Interest Expense = 152,920,028.00
5,931,096,395.00/152,920,028.00 = 38.79 times
6. Gross Profit Margin
Gross Profit = 14,998,006,135.00
Net Income = 4,722,806,527.00
14,998,006,135.00/4,722,806,527.00= 3.18%
7. Operating Profit Margin
Operating Income= 5,931,096,395.00
Net Income = 4,722,806,527.00
5,931,096,395.00/4,722,806,527.00= 1.26%
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 The adjusted trial balance columns of Falsetto Company’s worksheet for the year ended December 31,20CY are
as follows:

Accounts Debit Credit

Cash 14,500.00

Accounts Receivable 11,100.00

Inventory 29,000.00

Prepaid Insurance 2,500.00

Equipment 95,000.00

Accumulated Depreciation - Equipment 18,000.00

Notes Payable 25,000.00

Accounts Payable 10,600.00

Owner's Capital 81,000.00

Owner's Drawings 12,000.00

Sales Revenue 536,800.00

Interest Revenue 2,500.00

Sales Returns and Allowances 6,700.00

Sales Discounts 5,000.00

Cost of Goods Sold 363,400.00

Freight-Out 7,600.00

Advertising Expense 12,000.00

Salaries Expense 56,000.00

Utilities Expense 18,000.00

Rent Expense 24,000.00

Depreciation Expense 9,000.00

Insurance Expense 4,500.00

Interest Expense 3,600.00

673,900.00 673,900.00

Prepare the Statement of Financial Position, Statement of Comprehensive Income and Statement of Changes in
Equity. (27 pts.)

1. How finance affects business? (4 pts.)

Finance plays a crucial role when it comes to taking decisions regarding the continued survival and growth of
a business. Finance basically serves as an enabler of various business opportunities in terms of expansion, larger
market capitalization and a new offering of service