Fundamentals of Accounting

Second Semester, S.Y. 2018 -2019

ACCOUNTING 1 Alyana Vee E. Vigor, CPA, MICB, RCA

Ma. Kristine B. Abreu Schedule Room

BSBA – MM 2 MWF 6:20 – 8PM NAC 102

COURSE DESCRIPTION

Accounting 1 is a 3-unit General Education Course and it is required for all

students enrolled in the tertiary level. The main objective of the course Fundamentals of
Accounting is to help students understand fundamental accounting concepts and
principles, as well as to develop the capability to perform the basic accounting functions:
the recognition, valuation, measurement and recording of the most common business
transactions and the preparation of accounting statements.

TABLE OF CONTENTS

1 CORPORATE INFORMATION
Entitled Tax
Financial Report
2 FINANCIAL STATEMENTS
Statement of Financial Condition
Statement of Income
Statement of Changes in Equity
Statement of Cash flow

3 FINANCIAL ANALYSIS
Liquidity Analysis Ratios
Financial Leverage Ratios
Profitability Ratios
Price/Earnings Ratio

4 CONCLUSION

 References

 Scanned Permit
1 Pilipinas Shell Petroleum Corporation

Pilipinas Shell Petroleum Corporation (SHLPH) was incorporated and registered with the
Securities and Exchange Commission on January 9, 1959 originally as The Shell Refining
Company (Philippines), Inc. In 1973, the Company was renamed to the present one. SHLPH is
primarily engaged in the refining and marketing of petroleum products

.The Company's integrated downstream operations span all aspects of the downstream product
supply chain, from importing crude oil and its refining, to importing and marketing refined
products to its customers across the Philippines. The products it markets include gasoline,
diesel, fuel oil, aviation fuel, marine fuel, lubricants and bitumen.
SHLPH distributes refined and imported petroleum products through its 27 fuel distribution
terminals, 10 lubricants warehouses, and two bitumen import facilities throughout the Philippine
Archipelago.
Certain operations of the Company is registered with the Board of Investments and entitled to
Income Tax Holiday (ITH) provided under Republic Act 8479, otherwise known as the
Downstream Oil Deregulation Act of 1998 (see Note 27).

The financial statements have been authorized for issue by the Company’s Board of Directors on
March 14, 2018 upon endorsement by the Board Audit Committee on 21 February 2018.

Security Information

Sector Industrial

Subsector Electricity, Energy, Power & Water

Corporate Life 09 January 2009 to 08 January 2059 (50 years)

Stockholder’s Meeting as per By-Laws Third Tuesday in May

Fiscal Year 12/31 (Month/Day)

Transfer Agent Rizal Commercial Banking Corporation

Auditor Sycip Gorres Velayo & Co.

Contact information

Business Address Shell House, No. 156 Valero Street, Salcedo Village, Brgy. Bel-Air, Makati City 1227

Telephone Number (632) 816-6501

Fax Number 632) 4994350

Website http://pilipinas.shell.com.ph

2 PILIPINAS SHELL PETROLEUM CORPORATION

Financial Report (ANNUAL)
For the Fiscal Year December 31, 2017
ended
Currency Philippine Peso (in 000’s)

Balance Sheet
Year Ending Previous Ending
December 31, 2017 December 31, 2016
Current Assets
45,876,259 38,856,348

Total liabilities 81,877,005 70,609,251

 Current Liabilities 31,234,999 22,400,832

Total Liabilities 39,741,617 37,680,978

Retained Earnings (Deficit) 14,339,453 5,111,868

Stockholder’s Equity 42,135,388 32,928,273

Book Value Per Share 26.1 20.4

Income Statement
Year Ending Previous Ending
December 31, 2017 December 31, 2016
Gross Revenue
170,241,062 137,678,392

Gross Expense
157,206,498 125,969,005

Non- Operating Income

1,447,561 176,748

Non- Operating Expense

721,905 1,058,018

Income/ (Loss) Before Tax

13,760,220 10,828,117

Income Tax Expense

3,391,986 3,384,342

Net Income/(Loss) After Tax

10,368,234 7,443,775

Earning/(Loss) Per Share (basic)

6.43 4.68

Earning/(Loss) Per Share (diluted)

6.43 4.68

3 FINANCIAL ANALYSIS

Liquidity Analysis Ratios:

Formula
Fiscal Year Ended Previous Fiscal Year

Dec 31, 2017 Dec 31, 2016

Current Ratio or Current Assets / Current

1.5 1.7
Working Capital Ratio Liabilities
Quick Ratio Current Assets -
Inventory –
0.6 0.6
(Prepayments) / Current
Liabilities
Solvency Ratio Total Assets / Total
2.1 1.9
Liabilities
Financial Leverage Ratios

Debt Ratio Total Debt/Total Assets 0.1 0.2

Debt-to-Equity Ratio Total Debt/Total
0.2 0.4
Stockholders' Equity
Interest Coverage Earnings Before Interest
and Taxes (EBIT) / 28.7 21.6
Interest Charges
Asset to Equity Ratio Total Assets / Total
2 2.2
Stockholders' Equity

Profitability Ratios

Gross Profit Margin Sales - Cost of Goods

Sold or Cost of Service / 0.16 0.18
Sales
Net Profit Margin Net Profit / Sales 0.06 0.05
Return on Assets Net Income / Total
0.13 0.11
Assets
Return on Equity Net Income / Total
0.25 0.23
Stockholders' Equity
Price Per Share /
PRICE/EARNINGS
Earnings Per Common 9.5 14.9
RATIO Share

References

https://www.shell.com.ph/
https://www.accountingcoach.com/financial-ratios/explanation
http://edge.pse.com.ph/announcements/form.do
http://edge.pse.com.ph/financialReports/form.do
https://pilipinas.shell.com.ph/investors/financial-
reports/_jcr_content/par/textimage.stream/1523617322694/5c36795a0c23f7948e7f845e
89c2275a674d658b3f2b8199d597a2147b06a651/annual-report-2017.pdf
Scanned Permit

Ma. Kristine B. Abreu

201000228-3