Financial Ratios

Description Result
Formula
20X2 20X1
1 Gross Profit Margin Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue

2 Net Profit Margin

3 Return on Assets

4 Return on Equity

5 Current Ratio

6 Debt-to-Equity Ratio

7 Inventory Turnover Ratio

8 Earnings Per Share

9 Price Earnings Ratio

10 Working Capital
 ABC COMPANY
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 20X2 and 20X1
(Amounts in Philippine Peso)

Notes 20X2 20X1

ASSETS

CURRENT ASSETS
Cash 3 P 2,305,294 P 1,624,344###
Inventories 4 955,791 1,109,278###
Other Current Assets 5 286,444 52,563###
Total Current Assets 3,547,529 2,786,185###

NON-CURRENT ASSETS
Property and equipment 6 69,066 208,439###
Minimum corporate income tax 7 38,298 40,416
Other asset 8 26,100 26,100
133,464 274,955
###
TOTAL ASSETS P 3,680,993 P 3,061,140###
###
LIABILITIES AND EQUITY ###
###
CURRENT LIABILITIES ###
Trade and other payables 9 P 306,727 P 342,302###
Income tax payable 19 101,896 154,053
408,623 496,355
###
EQUITY 10 ###
Capital Stock 1,550,000 1,250,000###
Retained Earnings 1,722,370 1,314,785###
Total equity 3,272,370 2,564,785###
###
TOTAL LIABILITIES AND EQUTIY P 3,680,993 P 3,061,140###
###
See Notes to Financial Statements ###
 ABC COMPANY
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 20X2 AND 20X1
(Amounts in Philippine Pesos)

Notes 20X2 20X1

REVENUES 12 P 16,992,063 P 15,196,409

COST OF SALES 13 (10,535,923) (8,445,691)

GROSS INCOME 6,456,140 6,750,718

OTHER INCOME 14 673 1,005

6,456,813 6,751,723

DISTRIBUTION EXPENSES 15 (4,986,714) (4,879,726)

ADMINISTRATIVE EXPENSES 16 (960,618) (1,101,734)

INCOME BEFORE TAX 509,481 770,263

INCOME TAX 19 (101,896) (154,053)

NET INCOME P 407,585 P 616,210

See Notes to Financial Statements

 ABC COMPANY
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 20X2 AND 20X1
(Amounts in Philippine Pesos)

Note 20X2 20X1

CAPITAL STOCK 9

Authorized P 5,000,000 divided into

50,000 shares Php 100 par value
Issued and Outstanding P 1,550,000 P 1,250,000

RETAINED EARNINGS
Beginning 1,314,785 698,575
Net Income 407,585 616,210
Ending Balance 1,722,370 1,314,785

TOTAL EQUITY P 3,272,370 P 2,564,785

See Notes to Financial Statements

 ABC COMPANY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 20X2 AND 20X1
(Amounts in Philippine Pesos)

Notes 20X2 20X1

CASH FLOWS FROM OPERATING ACTIVITIES
Income before tax P 509,481 P 770,263
Adjustments for:
Depreciation 18 139,373 365,310
Income tax payment (113,436) (40,855)
Operating loss before working capital changes 535,418 1,094,718
(Increase)Decrease in current assets
Inventories 4 153,487 (35,810)
Other current assets (233,881) (102,687)
Increase(Decrease) in current liabilities
Trade and other payables 8 (35,575) (643,896)
Net Cash provided by Operating Activities 419,449 312,325

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of factory equipment 6 - -

CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from shareholders 300,000 -

NET INCREASE (DECREASE) IN CASH 719,449 312,325

CASH AT BEGINNING OF YEAR 1,624,344 1,312,019

CASH AT END OF YEAR P 2,343,793 P 1,624,344

See Notes to Financial Statements

3. CASH
This account consists of:
20X2 20X1
Cash in bank P 2,305,294 P 1,624,344

4. INVENTORIES
. This account consists of:
20X2 20X1
Inventories P 955,791 P 1,109,278

5. OTHER CURRENT ASSETS

This account consists of:
20X2 20X1
Prepaid tax P 286,444 P 52,563
Input Tax - -
P 286,444 P 52,563

6. PROPERTY AND EQUIPMENT

This account consists of:
2022
Beginning Ending
Balance Additions Disposals Balance
Cost:
Service vehicle P 1,799,797 P - P - P 1,799,797
Building improvements 78,250 - 78,250
Factory equipment 670,782 - 670,782
P 2,548,829 P - P - P 2,548,829
Accumulated Depreciation:
Service vehicle P 1,799,797 P - P - P 1,799,797
Building improvements 24,781 5,217 29,998
Factory equipment 515,812 134,156 649,968
P 2,340,390 P 139,373 P - P 2,479,763
Carrying value P 208,439 P 69,066

2021
Beginning Ending
Balance Additions Disposals Balance
Cost:
Service vehicle P 1,799,797 P - P - P 1,799,797
Building improvements 78,250 - 78,250
Factory Equipment 670,782 - 670,782
P 2,548,829 P - P - P 2,548,829
Accumulated Depreciation:
Service vehicle P 1,573,860 P 225,937 P - P 1,799,797
Building improvements 19,564 5,217 24,781
Factory Equipment 381,656 134,156 515,812
P 1,975,080 P 365,310 P - P 2,340,390
Carrying value P 573,749 P 208,439

6
7. MINIMUM CORPORATE INCOME TAX
20X2 20X1
Minimum corporate income tax - 1% P 38,298 P 40,416

8. OTHER ASSETS
This account consists of:
20X2 20X1
Security deposit P 26,100 P 26,100

9. TRADE AND OTHER PAYABLES

This account consists of:
20X2 20X1
Trade payable P 250,000 P 214,150
Accrued expenses 19,396 10,533
Vat payable 37,331 117,619
P 306,727 P 342,302

10. EQUITY

Capital stock
The Company's authorized capital stock is P5,000,000 divided into 50,000 shares with the par value of P 100
each. Issued and outstanding 15,500 shares.

Shares Amount
20X2 20X1 20X2 20X1
Issued and outstanding 12,500 12,500 P 1,250,000 P 1,250,000
Additional subscription 3,000 - 300,000 -
15,500 12,500 P 1,550,000 P 1,250,000

11. REVENUES
20X2 20X1

Sales P 16,992,063 P 15,196,409

12. COST OF SALES

This account is composed of the following:

Cost of sales: Note 20X2 20X1

Finished goods beginning 4 P 1,109,278 P 1,073,468
Cost of goods manufactured 13 10,382,436 8,481,501
Goods available for sale 11,491,714 9,554,969
Finished goods ending 4 (955,791) (1,109,278)
Cost of sales P 10,535,923 8,445,691

7
13. COST OF GOODS MANUFACTURED
This account is composed of the following:
Note 20X2 20X1
Raw materials beginning P - P -
Purchases 3,214,971 2,002,721
Raw available 3,214,971 2,002,721
Ending inventory - -
Raw materials used 3,214,971 2,002,721
Conversion cost:
Subcontractor 6,926,786 6,315,179
Overhead:
Depreciation 18 134,156 134,156
Others 106,523 29,445
Cost of Goods Manufactured P 10,382,436 P 8,481,501

14. OTHER INCOME

The account is composed mainly of:
20X2 20X1
Interest income P 673 P 1,005

15. DISTRIBUTION COST

This account consists of:
Notes 20X2 20X1
Compensation and other benefits 17 P 3,290,934 P 3,824,551
Rent 1,548,082 788,292
Depreciation 18 5,217 231,154
Communications, light and water 142,481 35,729
Total P 4,986,714 P 4,879,726

16. ADMINISTRATIVE EXPENSES

This account consists of: Repairs and m
Notes 20X2 20X1
Compensation and other benefits 17 P 638,604 P 904,301
Management and consultancy 91,840 119,837
Taxes and Licenses 60,000 52,764
Professional fee 15,000 15,000
Office Supplies 28,124 -
Repairs and maintenance 126,840 -
Miscellaneous 210 9,832
P 960,618 P 1,101,734

17. COMPENSATION AND OTHER BENEFITS

This account consists of:
20X2 20X1
Distribution Admin Distribution Admin
Salaries P 2,858,965 P 514,582 P 3,242,478 P 754,636
SSS and other contributions 128,955 33,000 91,795 29,700
Other Benefits 303,014 91,022 490,278 119,965
P 3,290,934 P 638,604 P 3,824,551 P 904,301

8
18. DEPRECIATION
This account consists of:
Cost Distribution
20X2 20X1 ### 20X2 20X1
Factory equipment P 134,156 P 134,156 P - P -
Service vehicle - - - 225,937
Building improvements - - 5,217 5,217
P 134,156 P 134,156 P 5,217 P 231,154

2022 2021
Factory equipment P 134,156 P 134,156
Service vehicle - 225,937
Building improvements 5,217 5,217
P 139,373 P 365,310