AeryStephen Inc.

Income Statement
For the Years 2017 and 2018
2018 2017
Sales PHP 6,150,000.00 PHP 7,550,000.00
Cost of Goods 4,550,000.00 5,750,000.00
Gross Profit 1,600,000.00 1,800,000.00
Operating Expenses
Depreciation Expense 100,000.00 120,000.00
Selling & Administrative Expense 730,000.00 820,000.00
Fixed Expenses 200,000.00 200,000.00
Lease Expense 150,000.00 150,000.00
Total Operating Expenses 1,180,000.00 1,290,000.00
Profit Before Interest and Taxes 420,000.00 510,000.00
Interest Expense 300,000.00 350,000.00
Profit Before Income Tax 120,000.00 160,000.00
Income Tax Expense 48,000.00 64,000.00
Net Income 72,000.00 96,000.00

Notes:
Tax Rate 40.0% 40.0%
Shares Outstanding 80,000 100,000
Earnings Per Share PHP 0.90 PHP 0.96
Dividends Per Share PHP 1.50 PHP -
Addition to RE per Share PHP (0.60) PHP 0.96
 Aery Stephen Inc.
Balance Sheets
For the Years 2017 and 2018
2018 2017
Cash PHP 50,000.00 PHP 108,000.00
Marketable Securities 100,000.00 150,000.00
Accounts Receivable 350,000.00 450,000.00
Inventory 850,000.00 1,250,000.00
Prepaid Expense 40,000.00 120,000.00
Total Current Assets 1,390,000.00 2,078,000.00
Plant & Equipment 4,800,000.00 5,350,000.00
Accumulated Depreciation 290,000.00 410,000.00
Long Term Investments 360,000.00 450,000.00
Total Non-Current Assets 4,870,000.00 5,390,000.00
Total Assets 6,260,000.00 7,468,000.00

Accounts Payable 380,000.00 420,000.00

Notes Payable 100,000.00 150,000.00
Accrued Expenses 100,000.00 150,000.00
Other Current Liabilities 180,000.00 200,000.00
Total Current Liabilities 760,000.00 920,000.00
Long-term Debt 2,500,000.00 2,900,000.00
Total Liabilities 3,260,000.00 3,820,000.00
Common Stock 2,000,000.00 2,500,000.00
Additional Paid-in-Capital 500,000.00 600,000.00
Retained Earnings 500,000.00 548,000.00
Total Equity 3,000,000.00 3,648,000.00
Total Liabilities & Equity 6,260,000.00 7,468,000.00
 Aery Stephen Inc.
Statement of Cash Flows
For the Year 2018
Cash Flows from Operations
Net Income PHP 72,000.00
Depreciation Expense (120,000.00)
Change in Accounts Receivable 100,000.00
Change in Inventories 400,000.00
Change in Prepaid Expense 80,000.00
Change in Accounts Payable (40,000.00)
Change in Accrued Expenses (50,000.00)
Change in Other Current Liabilities (20,000.00)
Total Cash Flows from Operations 422,000.00
Cash Flows from Investing
Change in Plant & Equipment 550,000.00
Change in Long-Term Investments 90,000.00
Change in Marketable Securities 50,000.00
Total Cash Flows from Investing 690,000.00
Cash Flows from Financing
Change in Notes Payable (50,000.00)
Change in Long-term Debt (400,000.00)
Change in Common Stock (500,000.00)
Change in Paid-in Capital (100,000.00)
Cash Dividends (120,000.00)
Total Cash Flows from Financing (1,170,000.00)
Net Change in Cash Balance (58,000.00)
Check Answer against Balance Sheet
Beginning Cash Balance from Balance Sheet 108,000.00
Ending Cash Balance from Balance Sheet 50,000.00
Net Change in Cash Balance (58,000.00)