Académique Documents
Professionnel Documents
Culture Documents
PROBLEMS
Assets
Non-current Assets
Property, plant and equipment, net of accumulated depreciation of
P1,450,000 P2,874,000
Investment property, at fair value 2,500,000
Total Non-current Assets P5,374,000
Current Assets
Cash and cash equivalents P 230,000
Accounts receivable, net of allowance for doubtful receivables of P200,000 1,700,000
Inventory 1,180,000
Total Current Assets P3,110,000
Total Assets P8,484,000
Liabilities
Non-current Liabilities
Long-term debt P1,800,000
Environmental provision 281,000
Total Non-current Liabilities P2,081,000
Current Liabilities
Trade payables and accrued expenses P 253,000
Dividends payable 100,000
Current portion of long-term debt 500,000
Interest accrued on long-term debt 230,000
Income tax payable 130,000
Warranty provision 400,000
Total Current Liabilities P1,613,000
Total Liabilities P3,694,000
53
Chapter 10 Financial Statements of SMEs
Shareholders Equity
10-3. Company Y
Restated
2016 2015
Sales P1,040,000 P735,000
Cost of goods sold (2015 as previously reported 435,000) (724,000)* (500,000)
Gross profit P 316,000 P235,000
Other income Change in fair value of investment in associate
(2015 as previously stated P0) 50,000 20,000
Selling expenses (80,000) (50,000)
Administrative expenses (50,000) (50,000)
Profit before income tax P236,000 P155,000
Income tax expense (2015 as previously reported P60,000) (70,800) (46,500)
Profit P 165,200 P108,500
Retained earnings, January 1
-as previously stated 340,000 P200,000
-effect of correction of prior period cost of goods sold (45,500)
-effect of change in accounting policy for investment in 14,000
associate
Retained earnings, December 31 P473,700 P308,500
MULTIPLE CHOICE
MC1 E MC7 C
MC2 A MC8 B
MC3 C MC9 A
MC4 A MC10 B
MC5 A MC11 C
MC6 C MC12 B
54