EXCELLENT TOYS INC

Income Statement
For the Year Ended December 31, 2017

Net Sales (1) ₱ 5,832,000.00

Cost of Goods Sold (2) -₱ 4,892,000.00
Gross Income ₱ 940,000.00

Expenses
Distribution Cost (3) ₱ 1,046,500.00
Administrative Expenses (4) ₱ 177,000.00
Interest Expense ₱ 67,500.00 ₱ 1,291,000.00

Income before tax -₱ 351,000.00

Income tax expense
Net Income -₱ 351,000.00
Note 1 - Net Sales
Sales ₱ 5,850,000.00
Sales Returns -₱ 6,000.00
Sales Discount -₱ 12,000.00
Total Net Sales ₱ 5,832,000.00

Note 2 - Cost of Good Sold

Raw Materials, Jan 1 ₱ 180,000.00
Purchases ₱ 3,300,000.00
Purchase Return -₱ 10,000.00
Purchase Discount -₱ 15,000.00
Raw Materials Available for Use ₱ 3,455,000.00
Raw Materials, Dec 31 ₱ -
Raw Material Used ₱ 3,455,000.00
Direct Labor ₱ 720,000.00
Indirect Labor ₱ 72,000.00
Indirect Materials ₱ 30,000.00
Super Intendence ₱ 150,000.00
Total Manufacturing Cost ₱ 4,427,000.00
Goods in Process, Jan 1. ₱ 215,000.00
Total Cost Goods in Process ₱ 4,642,000.00
Goods in Process, Dec 31. ₱ -
Cost of Goods Manufactured ₱ 4,642,000.00
Finished Goods Jan 1. ₱ 250,000.00
Goods Available for Sale ₱ 4,892,000.00
Finished Goods, Dec 31. ₱ -
Cost of Goods Sold ₱ 4,892,000.00

Note 3 - Distribution Cost

Sales Salaries ₱ 52,000.00
Light, Heat and Power ₱ 185,000.00
Repairs and Maintenance ₱ 45,000.00
Factory Supplies ₱ 18,000.00
Rent ₱ 180,000.00
Salesmen's Commission ₱ 25,000.00
Advertising ₱ 300,000.00
Utilities- Sales Office ₱ 16,000.00
Depreciation-Machineries ₱ 150,000.00
Depreciation-Store Equipment ₱ 50,000.00
Freight out ₱ 25,500.00
Total Distribution Cost ₱ 1,046,500.00

Note 4 - Administrative Expense

Office Salaries ₱ 80,000.00
Depreciation- Office Equipment ₱ 30,000.00
Taxes ₱ 25,000.00
Utilities- Administrative Expense ₱ 25,000.00
Bad Debts ₱ 2,000.00
Professional Fees ₱ 15,000.00
Total Administrative Expense ₱ 177,000.00
 EXCELLENT TOYS INC
Statement of Changes in Shareholder's Equity
For the Month Ended December 31, 2017
Share Capital, beg. ₱ 2,300,000.00
Less: Net Loss -₱ 351,000.00
₱ 1,949,000.00
 EXCELLENT TOYS INC
Statement of Financial Position
December 31, 2017

ASSETS
Current Asset Note
Cash and Cash Equivalents (1) ₱ 207,000.00
Trade and Other Receivables (2) ₱ 362,000.00
Inventories (3) ₱ 645,000.00
Prepaid Expenses ₱ 65,000.00
Total Current Assets ₱ 1,279,000.00

Noncurrent Assets
Property, Plant and Equipment (4) ₱ 2,670,000.00
Total Noncurrent Assets ₱ 2,670,000.00
Total Assets ₱ 3,949,000.00

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Trade and other payables (5) ₱ 1,029,400.00

Noncurrent Liabilities
Long-term debt
Total Liabilities ₱ 1,029,400.00

Shareholders' Equity
Share Capital ₱ 1,949,000.00
Share Premium ₱ 50,000.00
Retained Earnings ₱ 275,600.00
Total Shareholdes' Equity ₱ 2,274,600.00

Total Liabilities and Shareholder's Equity ₱ 3,304,000.00

Note 1 - Cash and Cash Equivalents
Petty Cash ₱ 10,000.00
Cash in Bank ₱ 197,000.00
Total Cash and Cash Equivalent ₱ 207,000.00

Note 2 - Trade and Other Receivables

Securities for Trading ₱ 150,000.00
Accounts Receivables ₱ 220,000.00
Allowance for Doubtful Accounts -₱ 8,000.00
Total Trade and Other Receivables ₱ 362,000.00

Note 3 - Inventories
Raw Materials, Jan 1 ₱ 180,000.00
Goods in Process, Jan 1 ₱ 215,000.00
Finished Goods, Jan 1 ₱ 250,000.00
Total Inventories ₱ 645,000.00

Note 4 - Property, Plant and Equipment

Machineries and Equipment ₱ 2,400,000.00
Store Equipments ₱ 500,000.00
Office Equipment ₱ 150,000.00
Total ₱ 3,050,000.00
Accumulated Depreciation -₱ 380,000.00
Carrying Amount ₱ 2,670,000.00

Note 5 - Trade and Other Payables

Accounts Payable ₱ 340,000.00
Other Current Liabilities ₱ 99,000.00
Accrued Expense ₱ 90,400.00
Notes Payable ₱ 500,000.00
Total Trade and Other Payables ₱ 1,029,400.00