SCARLET GUARD PUBLISHING AND BOOKSTORE

Statement of Financial Position

31-Dec-17

Assets

Current Assets
Cash and cash equivalents PHP 4,500,000.00
Financial assets at fair value PHP 2,350,000.00
Accounts Receivable 2,500,000.00
Inventories 196,000.00
Prepaid insurance 15,000.00
Total Current Assets PHP 9,561,000.00

Noncurrent Assets
Property, plant, and equipment 9,600,000.00
Investment in associate, at equity 1,185,000.00
Intangible assets 504,000.00
Total Noncurrent Assets 11,289,000.00
TOTAL ASSETS PHP 20,850,000.00

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Accounts payable 4,600,000.00
Interest payable 600,000.00
Long-term debt, current portion 1,000,000.00
TOTAL CURRENT LIABILITIES 6,200,000.00

Noncurrent Liabilities
Long- term debt, noncurrent portion 3,000,000.00
TOTAL NONCURRENT LIABILITIES 3,000,000.00

Shareholders, equity
Share capital 5,000,000.00
Reserves 3,000,000.00
Retained earnings 3,650,000.00
11,650,000.00
TOTAL LIABILITIES AND OWNER'S EQUITY PHP 20,850,000.00
 SCARLET GUARD PUBLISHING AND BOOKSTORE
Income Statement
31-Dec-17

Sales PHP 6,603,000.00

Cost of goods sold 2,470,000.00
Gross income PHP 4,133,000.00
Other expenses
Salaries PHP 600,000.00
Utilities 290,000.00
Insurance 45,000.00
Interest 60,000.00
Depreciation 1,000,000.00
Taxes and Licenses 187,500.00
Supplies 40,000.00 2,222,500.00
PROFIT FOR THE YEAR PHP 1,910,500.00
 SCARLET GUARD PUBLISHING AND BOOKSTORE
Statement of Changes in Equity
31-Dec-17

Share Capital Reserves

Balance, January 1 PHP 2,500,000.00 PHP 2,000,000.00
Correction of prior period error
Issuance of Shares 2,500,000.00 1,000,000.00
Net Income
Dividends declared
Balances, December 31 PHP 5,000,000.00 PHP 3,000,000.00
Retained Earnings
PHP 2,000,000.00
500,000.00

PHP 1,910,500.00
(760,500.00)
PHP 3,650,000.00
 SCARLET GUARD PUBLISHING AND BOOKSTORE
Statement of Cash Flows
31-Dec-17

Cash flows from Operating Activities

Collections from Customers PHP 278,000.00
Payment for salaries 600,000.00
Payment for utilities 290,000.00
Payment for insurance 45,000.00
Payment for interest 60,000.00
Payment for taxes 187,500.00
Payment for supplies 40,000.00
Net cash inflows from operating activities PHP 1,500,500.00

Cash flows from investing activities

Purchase of building (5,000,000.00)
Purchase of land (2,000,000.00)
Acquisition of furniture and fixtures (2,600,000.00)
Net cash outflows from investing activities (9,600,000.00)

Cash flows from financing activities

Issuance of share capital 2,500,000.00
Payment of cash dividend (760,500.00)
Loan from bank 4,000,000.00
Net cash inflows from financing activities 5,739,500.00
Decrease in Cash PHP (2,360,000.00)
Cash, January 1 6,860,000.00
Cash, December 31 PHP 4,500,000.00
Finished goods PHP 125,000.00
Goods in process 49,000.00
Raw materials 22,000.00
Total Inventories PHP 196,000.00
 2016

Current Assets PHP 10,250,000.00

Noncurrent Assets 6,750,000.00
TOTAL ASSETS PHP 17,000,000.00

Current Liabilities 4,550,000.00

Noncurrent Liabilities 2,890,000.00
TOTAL LIABILITIES 7,440,000.00
Shareholders' Equity 9,560,000.00
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 17,000,000.00
2017

9,561,000.00
11,289,000.00
20,850,000.00

6,200,000.00
3,000,000.00
9,200,000.00
11,650,000.00
20,850,000.00
 2016

Current Assets PHP 10,250,000.00

Noncurrent Assets 6,750,000.00
TOTAL ASSETS PHP 17,000,000.00

Current Liabilities PHP 4,550,000.00

Noncurrent Liabilities 2,890,000.00
TOTAL LIABILITIES 7,440,000.00
Shareholders' Equity 9,560,000.00
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY PHP 17,000,000.00

2016
Sales PHP 2,503,000.00
Cost of goods sold (1,103,000.00)
Gross income PHP 1,400,000.00
Expenses (745,000.00)
Net income PHP 655,000.00

2016
Share Capital PHP 2,500,000.00
Reserves 1,950,000.00
Retained Earnings 2,100,000.00
TOTAL SHAREHOLDERS' EQUITY PHP 6,550,000.00
 2017
Cash inflows (outflows) from:
PHP 9,561,000.00 Operating activities
11,289,000.00 Investing Activities
PHP 20,850,000.00 Financing Activities
Increase (Decrease) in Cash
PHP 6,200,000.00 Cash, January 1
3,000,000.00 Cash , December 31
9,200,000.00
11,650,000.00
PHP 20,850,000.00

2017
PHP 6,603,000.00
(2,470,000.00)
PHP 4,133,000.00
(2,222,500.00)
PHP 1,910,500.00

2017
PHP 5,000,000.00
3,000,000.00
3,650,000.00
PHP 11,650,000.00
 2016 2017

PHP 900,000.00 PHP 1,500,500.00

(3,500,000.00) (9,600,000.00)
6,500,000.00 5,739,500.00
3,900,000.00 (2,360,000.00)
2,960,000.00 6,860,000.00
PHP 6,860,000.00 PHP 4,500,000.00
Land PHP 2,100,000.00
Building 6,000,000.00
Equipment 3,500,000.00
TOTAL PHP 11,600,000.00
Accumulated Depreciation (2,000,000.00)
Carrying amount PHP 9,600,000.00