FINANCIAL STATEMENTS OF SOLE PROPRIETORSHIP

A. STATEMENT OF FINANCIAL POSITION

C. SANTOS
Balance Sheet
December 31, 2018

ASSETS

Current Assets

Cash P212,000
Accounts Receivable 60,000
Prepaid Expenses 71,000 P 343,000

Non-current Assets

Computer equipment 100,000

Accumulated depreciation (1,667) 98,333

TOTAL ASSETS P 441,333

LIABILITIES AND OWNER’S EQUITY

Current Liabilities

Accrued Expenses P14,844

Loans Payable 100,000
Income Tax Payable 75 P 114,919

Owner’s Equity

C.Tolentino, Capital 326,414

TOTAL LIABILITIES AND OWNER’S EQUITY P 441,333
B. STATEMENT OF COMPREHENSIVE INCOME

C. SANTOS
Income Statement
December 31, 2018

REVENUES

Internet Services P 65,000

Printing Services 54,000 P 119,000

EXPENSES

Salaries and wages 20,000

Internet Expenses 4,000
Utilities Expenses 5,000
Rental 5,000
Computer Supplies 5,000
Depreciation 1,667
Insurance 1,000
Interest 844
Taxes and Licenses 25,000 P 67,511

INCOME BEFORE TAX 51,489

Income tax expense 75

NET INCOME P 51,414

C. STATEMENT OF CASH FLOWS

C. SANTOS
Statement of Cash Flows
December 31, 2018

Operating Activities

Net Income P 51,414

Decrease in accounts receivable 5,000
Decrease in Inventory 5,000
Net cash flow by operating activities 61,414

Investing Activities

Increase in property, plant and equipment 0

Net cash flow by investing activities 0

Financing Activities

Increase in Notes payable 2,500

Decrease in long-term debts (1,000)
Net cash flow by financing activities 1,500

D. CHANGES IN OWNER’S EQUITY

C. SANTOS
Statement of Owner’s Equity
December 31, 2018

C. Santos, Capital, January 1

Investment during the year P 300,000

Net income for the year 51, 414
Total 351,414
Less: Withdrawals P (25,000)

Net increase in owner’s equity P 326,414

C. Santos, Capital, December 31 P 326,414

A. FINANCIAL CONDITION AND STRUCTURE
Total assets amounted to 441,333, an increase of 100,000 from the end of
the previous fiscal year, due mainly to an increase in market value of in-
vestment securities. Liabilities amounted to, 114,919 an increase of 26,938
from the end of the previous fiscal year, due mainly to an increase in busi-
ness bonds and loans. Equity amounted to 441,333.

B. FINANCIAL PERFORMANCE

In FY2018, the global economy remained strong overall on the back of an ex-
pansion in consumer spending and exports in Europe and the United States
despite such uncertainties as the slowdown in economic growth in China and
geopolitical risks. The Philippine economy progressed favorably due mainly
to an increase in exports as well as a recovery in domestic demand including
consumer spending and capital investment. In this operating environment,
Toyota Industries undertook efforts to ensure customer trust through a dedi-
cation to quality as well as to expand sales by responding flexibly to market
trends.

C. SOURCE AND USE OF CASH

Net cash provided by operating activities were 212,000 in FY2018, due

mainly to posting profit before income taxes of 25,000. Net cash provided
by operating activities increased by 20,000 compared to net cash provided
by operating activities of 15,000 pesos in the previous fiscal year.

D. CHANGES IN EQUITY EARNINGS

The Company’s financial policy is to ensure sufficient financing and liquidi-
ty for its business activities and to maintain strong consolidated financial
position. Currently, funds for capital investments and other long-term capi-
tal needs are provided from retained earnings and long-term debt, and
working capital needs are met through short-term loans.