Financial Statements for three Comparative Months

Balance Sheet
May June July
Cash 11.277.395,00 14.108.508,00 80.335.727,00
Accounts Receivable 96.557.987,00 125.831.672,00 104.263.123,00
Inventory 140.231.761,00 100.138.921,00 53.527.654,00
Prepayments 2.800.000,00 2.520.000,00 2.240.000,00
Total Assets 250.867.143,00 248.278.262,00 246.045.665,00

Accounts Payable 75.300,00 73.621,00 74.125,00

Loans Payable 45.000.000,00 40.000.000,00 35.000.000,00
Capital 205.791.843,00 208.204.641,00 210.971.540,00
Total Liabilities and Equity 250.867.143,00 248.278.262,00 246.045.665,00

Income Statement
Sales 45.707.361,00 50.432.100,00 57.385.345,00
Sales Returns 22.542,00 23.145,00 31.037,00
Net Sales 45.684.819,00 50.408.955,00 57.354.308,00
Beginning Inventory 175.432.100,00 140.231.761,00 100.138.921,00
Ending Inventory 140.231.761,00 100.138.921,00 53.527.654,00
Cost of Sales 35.200.339,00 40.092.840,00 46.611.267,00
Gross Profit 10.484.480,00 10.316.115,00 10.743.041,00
Operating Expenses
Sales Commission 1.237.199,00 1.385.663,00 1.801.361,00
Rent Expenses 1.400.000,00 1.400.000,00 1.400.000,00
Warehouse Expenses 1.562.361,00 1.593.265,00 1.672.346,00
Selling Expenses 176.534,00 204.389,00 197.435,00
Total Operating Expenses 4.376.094,00 4.583.317,00 5.071.142,00
Operating Profit 6.108.386,00 5.732.798,00 5.671.899,00
Interest Expenses 3.735.000,00 3.320.000,00 2.905.000,00
Net Income 2.373.386,00 2.412.798,00 2.766.899,00
Cash Flows

Operating Activities
Cash receipts from customers 12.802.574,00 15.399.214,00 78.922.857,00
Cash paid to suppliers (201.283.875,00)
Payments for sales commissions 1.384.958,00 (1.385.663,00) (1.801.361,00)
Cash paid for other operating expenses (2.915.176,00) (2.862.438,00) (2.989.277,00)
Interest Expense (3.735.000,00) (3.320.000,00) (2.905.000,00)
Net Cash Flow From Operating Activities (193.746.519,00) 7.831.113,00 71.227.219,00

Financing Activities
Receipt of Loan 45.000.000,00
Payment of Loan (5.000.000,00) (5.000.000,00)
Net Cash Flow From Financing Activities 45.000.000,00 (5.000.000,00) (5.000.000,00)
Net increase (decrease) in cash (148.746.519,00) 2.831.113,00 66.227.219,00
Cash, beginning 160.023.914,00 11.277.395,00 14.108.508,00
Cash, June 30 11.277.395,00 14.108.508,00 80.335.727,00

CHANGE IN EQUITY
Beginning Capital 203.418.457,00 205.791.843,00 208.204.641,00
Net Income 2.373.386,00 2.412.798,00 2.766.899,00
End, Capital 205.791.843,00 208.204.641,00 210.971.540,00

Notes to Financial Statements

01 CASH

May June July

Cash in Bank 9.213.858 12.647.592 69.153.346,00
Cash on Hand 1.996.373 1.391.558 11.117.990
Petty Cash 67.164 69.358 64.391
Total 11.277.395,00 14.108.508,00 80.335.727,00

02 ACCOUNTS RECEIVABLE No allowance for bad debts have been set by the management.
03 INVENTORY The account includes repacked goods, which are considered by the management as good bags.
04 PREPAYMENTS This account compose of one required advance payment for one warehouse.
05 ACCOUNTS PAYABLE These are expenses incurred for operating expenses like repairs, and supplies, but
excluding the purchase for cement bags.
06 LOANS PAYABLE and INTEREST EXPENSE The loan was contracted in May, bearing approximately 10% interest,
payable on the outstanding balance.
07 CAPITALNo drawings by the owner. Capital increases by the amount of net income every month.
08 SALES Cement is sold at a minimum price of Php215 per bag. Selling price varies depending on the price offered by
the sales agent which then determines their commission.
09 PURCHASES/COST OF SALES In this particular, the company purchases inventory by bulk. Hence, there are no
monthly purchases for the next months unless the inventory turns low in which case the management asks for a
reshipment of new cement bags.
10 SALES COMMISSION Sales commission vary with sales. Selling price offered by the sales agent less Php215 is the
sales agent's commission.
11 OPERATING EXPENSES

May June July

Rent Expenses 1.400.000 1.400.000 1.400.000
Salaries 637.306 652.305 698.031
Food Allowance 318.653 330.653 341.653
Fuel Expenses 477.980 477.980 518.980
Miscellaneous 304.956 336.716 311.117
Total OE exluding Sales Commission 3.138.895 3.197.654 3.269.781