ABC COMPANY

STATEMENTS OF FINANCIAL POSITION

MARCH 31, 2021 AND 2020
(Amounts in Philippine Peso)

ASSETS
Notes 2021 2020
CURRENT ASSETS
Cash 3 P 3,285,457 P 1,235,236
Trade and other receivables 4 1,773,183 2,543,442
Other current asset 5 69,615 215,303
Total Current assets 5,128,255 3,993,981

NON-CURRENT ASSETS
Property and equipment 6 26,660,813 29,916,819

26,660,813 29,916,819

TOTAL ASSETS 31,789,068 33,910,800

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Trade and other payables 7 10,181,841 8,432,882
Income tax payable 17 327,497 13,438
Total Current Liabilities 10,509,338 8,446,320

NON-CURRENT LIABILITIES
Loans 8 - 2,513,158
Advances from shareholders 9 16,038,077 18,843,077

Total Non-Current Liabilities 16,038,077 21,356,235

Total Liabilities 26,547,415 29,802,555

EQUITY
Share Capital 10 5,312,900 5,312,900
Accumulated loss (71,247) (1,204,655)
5,241,653 4,108,245

TOTAL LIABILITIES AND EQUITY P 31,789,068 P 33,910,800

See Notes to Financial Statements

 ABC COMPANY
STATEMENTS OF INCOME
FOR THE YEARS ENDED MARCH 31, 2021 AND 2020
(Amounts in Philippine Peso)

Notes 2021 2020

REVENUES 11 P 21,591,737 P 38,025,945

OPERATING EXPENSES 12 (19,861,871) (37,548,097)

OTHER INCOME 13 5,361 8,504

1,735,227 486,352.00

FINANCE COST 16 (274,322) (343,473)

INCOME (LOSS) BEFORE TAX 1,460,905 142,879

INCOME TAX EXPENSE 17 (327,497) (13,438)

NET INCOME (LOSS) P 1,133,408 P 129,441

See Note to Financial Statements

 ABC COMPANY
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED MARCH 31, 2021 AND 2020
(Amounts in Philippine Peso)
2021 2020
Note

SHARE CAPITAL 10 P 5,312,900 P 5,312,900

ACCUMULATED LOSS
Beginning Balance (1,204,655) (1,334,096)
Income 1,133,408 129,441
Ending Balance (71,247) (1,204,655)
TOTAL EQUITY P 5,241,653 P 4,108,245

See Notes to Financial Statements

 ABC COMPANY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 2021 AND 2020
(Amounts in Philippine Peso)

Notes 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES
Income (Loss) before tax P P 142,879
Add: Depreciation 15 4,033,318
Interest expense 16 343,473
Income tax payment (53,838)
Operating income(loss) before working capital changes
(Decrease)Increase in trade and other receivables 4 (1,862,162)
(Increase)Decrease in other current assets 5 (144,363)
Decrease in trade and other payables 7 (252,089)
Net cash provided by operating activities - 2,207,218

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property and equipment -

CASH FLOWS FROM FINANCING ACTIVITIES

Bank loan 8 (4,005,264)
Advances from stockholders 9 (720,000)
Payment of Interest expenses 16 (343,473)
- (5,068,737)

NET INCREASE (DECREASE) IN CASH - (2,861,519)

CASH AT BEGINNING OF YEAR 4,096,755

CASH AT END OF YEAR P - P 1,235,236

See Notes to Financial Statements

3. CASH

This account consists mainly of:

2021 2020
Petty cash fund P 25,000 P 20,000
Cash in bank 3,260,457 1,215,236
P 3,285,457 P 1,235,236
###
4. TRADE AND OTHER RECEIVABLES ###
###
This account consists mainly of: ###
2021 2020
Tuition and other fees P 1,613,799 P 2,226,204
Advances to employees 83,264 240,838
Advances to supplier & purchases 72,507 76,400
Other receivables 3,613 -
P 1,773,183 P 2,543,442

5. OTHER CURRENT ASSETS

This account consists mainly of:

2021 2020
Supplies - Uniforms P 21,588 P 174,246
Creditable tax 48,027 41,057
P 69,615 P 215,303

6. PROPERTY AND EQUIPMENT

This account consists of:

2021
Beginning Disposals Ending
Balance Additions Reclassification Balance
Cost:
Land P 900,000 P - P - P 900,000
School Furniture & Fixture 2,194,306 - - 2,194,306
Computer, School & Computer, School &
office equipment 2,229,880 19,472 - 2,249,352
Books and other equipment 2,413,586 - - 2,413,586
Building 17,117,036 - - 17,117,036
Building Improvement 10,296,655 48,500 - 10,345,155
Construction in progress 9,873,259 - - 9,873,259
Service vehicle 716,000 - - 716,000
P 45,740,722 P 67,972 P - P 45,808,694

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 Accumulated Depreciation:
School Furniture & Fixture P 984,248 P 233,071 P - P 1,217,319
Computer, School &
office equipment 2,229,880 2,832 - 2,232,712
Books and other equipment 480,990 93,233 - 574,223
Building 8,332,917 2,274,831 - 10,607,748
Building Improvement 3,079,868 720,011 - 3,799,879
Service vehicle 716,000 - - 716,000
P 15,823,903 P 3,323,978 P - P 19,147,881
Carrying value P 29,916,819 P 26,660,813
2020
Beginning Disposals Ending
Balance Additions Reclassification Balance
Cost:
Land P 900,000 P - P - P 900,000
School Furniture & Fixture 2,194,306 - - 2,194,306
Computer, School & Computer, School &
office equipment 2,229,880 - - 2,229,880
Books and other equipment 2,413,586 - - 2,413,586
Building 17,117,036 - - 17,117,036
Building Improvement 10,296,655 - - 10,296,655
Construction in progress 9,873,259 9,873,259
Service vehicle 716,000 - - 716,000
P 45,740,722 P - P - P 45,740,722

Accumulated Depreciation:
School Furniture & Fixture P 751,177 P 233,071 P - P 984,248
Computer, School &
office equipment 1,623,968 605,912 - 2,229,880
Books and other equipment 387,757 93,233 - 480,990
Building 6,058,086 2,274,831 - 8,332,917
Building Improvement 2,366,965 712,903 - 3,079,868
Service vehicle 602,632 113,368 - 716,000
P 11,790,585 P 4,033,318 P - P 15,823,903
Carrying value P 33,950,137 P 29,916,819

7. TRADE AND OTHER PAYABLES

This account consists of:

2021 2020
Accounts payable P 9,532,563 P 8,289,516
Accrued expenses and other payables 649,278 143,366
P 10,181,841 P 8,432,882
###
8. LOAN SSS LOAN
###
This account consists of: ###
2021 2020
Mortgage loan P - P 2,513,158
###

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9. ADVANCES FROM SHAREHOLDERS ###
###
This account consists of: ###
2021 2020
Advances from shareholders P 16,038,077 P 18,843,077
###
10. SHARE CAPITAL

The School's authorized capital stock is P 5,000,000 divided into 50,000 shares with the par value of P 100 each.

2021 2020
Shares Amount Shares Amount
Issued, outstanding and paid 50,000 P 5,000,000 50,000 P 5,000,000
Additional subscription 12,500 1,250,000 12,500 1,250,000
Total 62,500 6,250,000 62,500 6,250,000
Subscription receivable - (937,100) - (937,100)
62,500 5,312,900 62,500 5,312,900

11. REVENUE

This account consists of:

2021 2020
Tuition fee P 17,138,358 P 19,746,443
Other fees 4,453,379 18,279,502
P 21,591,737 P 38,025,945

12. OPERATING EXPENSES

This account consists of:

Instructional and academic

Notes 2021 2020
Compensation and other benefits 14 P 6,249,382 P 12,621,816
Books and other education expenses 3,645,991 3,045,666
Depreciation 15 3,323,978 4,004,542
Communications,light and water 1,066,076 3,570,460
Rent 874,236 1,461,774
Repairs and Maintenance 289,931 1,073,644
Educational supplies 884,976 6,260,322
Business meeting and conferences 97,407 125,178
Office supplies 88,056 376,742
Insurance 40,206 56,011
Transportation 32,851 89,119
Meal allowances 14,866 26,524
Advertising 9,190 146,086
Training and seminar 8,400 45,118
P 16,625,546 P 32,903,002

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 Administrative Expenses ###
Compensation and other benefits 14 P 2,814,273 P 3,204,007
Director's fee/Honorarium 69,323 951,305
Miscellaneous 154,456 75,861
Taxes and licenses 31,907 39,713
Professional fee 98,400 151,389
Supplies 54,942 98,760
Transportation and Travel 13,024 36,661
Repairs and Maintenance - 58,623
Depreciation 15 - 28,776
P 3,236,325 P 4,645,095
Total Instructional and Administrative expenses P 19,861,871 P 37,548,097

13. OTHER INCOME

###
This account consists of:
2021 2020
Interest income P 5,361 P 8,504
###
14. COMPENSATION AND OTHER BENEFITS ###

This account consists of:

2021 2020
Instructional Administrative Instructional Administrative
Salaries P 5,518,452 P 1,978,787 P 10,428,338 P 2,832,333
SSS,Philhealth & Pagibig 446,888 170,941 951,869 236,177
Employees and other benefits 284,042 664,545 1,241,609 135,497
P 6,249,382 P 2,814,273 P 12,621,816 P 3,204,007

15. DEPRECIATION

This account consists of:

2021 2020
Instructional Administrative Instructional Administrative
School Furniture & Fixture P 233,071 P - P 233,071 P -
Computer, School &
office equipment 2,832 577,136 28,776
Books and other equipment 93,233 - 93,233 -
Building 2,274,831 - 2,274,831 -
Building Improvement 720,011 - 712,903 -
Service vehicle - - 113,368 -
P 3,323,978 P - P 4,004,542 P 28,776
###
16. FINANCE COST

This account consists of:

2021 2020
Interest expense P 274,322 P 343,473

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17. INCOME TAXES
2021 2020
Income before tax P 1,460,905 P 142,879
Add(Deduct) ###
Interest income subject to final tax (5,361) (8,504)
Taxable income 1,455,544 134,375
Tax rate 22.50% 10%
Tax Due P 327,497 P 13,438
###
18. RELATED PARTY TRANSACTIONS 4,966,191
2021 2020
Advances from shareholder P 16,038,077 P 18,843,077
No compensation of key management personnel.

19. Supplementary Information Required by Bureau of Internal Revenue's

Revenue Regulations (RR) No. 15-2010

A. Withholding Taxes 2021
Withholding taxes - Compensation P -
Withholding taxes - Expanded 84,077
may
B. Other Taxes jun
Business permits P 31,407
Annual Registration 500
P 31,907