7. Revenue from the sale of goods are recognized when all the following conditions have been satisfied; (a) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) the Company retains neither continuing managerial involvement to the degree usually associated with ‘ownership nor effective control over the goods sold; (c) the amount of revenue can be measured reliably; (@ itis probable that the economic benefits associated with the transaction will flow to the Company; and (€) the costs incurred or to be incurred in respect of the transaction can be measured reliably. CASH AND CASH EQUIVALENTS Cash and Cash Equivalents includes cash on hand and in bank. This account refers to Accounts Receivable-trade PROPERTY AND EQUIPMENT ‘The following is the summary of Property and Equipment: 2021 2022 ‘Transportation equipment 600,000 600,000 Office Equipment 46,000 46,000 Furniture and fixtures 60,000 60,000 ‘Communication equipment 34,998 34,998 Total 740,998 740,998 Accumulated depreciation and amortization 193,800 211,200 Total 547,198 529,798 TRADE AND OTHER PAYABLES This account consist ofthe following 2021 2022 ‘Accounts payable and accrued expenses Percentage Tax 2,500 8,500 Income tax payable 30,425 40,375 Total 32,925 48,875 COST OF SALES ‘The summary ofthis account is as follows: Beginning inventory Purchases and handling costs 2,164,000 2,007,500 ‘Goods available for sale 2,184,000 2,007,500 Ending Inventory otal 2,184,000 2,007,500 ADMINISTRATIVE and OPERATING EXPENSES ‘This account includes the following: ‘Communication, light and water 66,589 Depreciation and amortization 17,400 Fuel and oil 53,571 Miscellaneous 3,800 Office supplies 12,200 Repairs and maintenance 24,600 Representation and Entertainment 24,000 Taxes and licenses 19,905 Travel and Transportation 33,600 Total 255,665 RECLASSIFICATION OF ACCOUNTS ; Certain accounts have been reclassified to conform wath the Dec presentation,