2019 2018 Increase/(Decrease)

Assets
Current Assets
Cash and Cash Equivalents 570,000 440,000 130,000
Accounts Receivable 550,000 515,000 35,000
Inventory 810,000 890,000 (80,000)
Total Current Assets 1,930,000 1,845,000 85,000

Non-current Assets
Property, Plant and Equipment 1,145,000 1,070,000 75,000
Accumulated Depreciation (345,000) (280,000) 65,000
Patent 500,000 500,000 -
Accumulated Amortization (150,000) (100,000) 50,000
Total Non-current Assets 1,150,000 1,190,000 (40,000)

TOTAL ASSETS 3,080,000 3,035,000 45,000

Liabilities
Current Liabilities
Accounts Payable 815,000 950,000 (135,000)
Total Current Liabilities 815,000 950,000 (135,000)

Non-current Liabilities
Note Payable- Long term debt 600,000 900,000 (300,000)
Total Non-current Liabilities 600,000 900,000 (300,000)
Total Liabilities 1,415,000 1,850,000 (435,000)

Shareholder’s Equity
Share Capital 1,080,000 820,000 260,000
Retained Earnings 585,000 365,000 220,000
Total Shareholder’s Equity 1,665,000 1,185,000 480,000

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY 3,080,000 3,035,000 45,000

Additional Info:

1. On January 13, Sandra sold transportation

equipment at book value of P200,000 and
purchased additional machinery and equipment
costing P275,000 cash.
2. On May 20, Sandra issued shares for P260,000.
3. Sandra’s net income for the year is P320,000.
Sandra paid cash dividend of P100,000 on October
26.
e/(Decrease)

-548,000 -240,000

548,000 - 240,000 =
 Sandra Company
Statement of Cash Flows
For the Year Ended December 31, 2019
Amounts in Philippine Peso

Cash Flow from Operating Activities

Net Income 320,000
Depreciation Expense 65,000
Amortization Expense 50,000
Increase in Accounts Receivable (35,000)
Decrease in Inventory 80,000
Decrease in Accounts Payable (135,000)
Net Cash provided by Operating Activities 345,000

Cash Flow from Investing Activities

Sale of Equipment 200,000
Purchase of Equipment (275,000)
Net Cash used in Investing Activities (75,000)

Cash Flow from Financing Activities

Decrease in Notes Payable (300,000)
Issuance of Share Capital 260,000
Payment of Cash Dividend (100,000)
Net Cash provided by Financing Activities (140,000)
Increase in Cash and Cash Equivalents 130,000
Add: Cash and Cash Equivalents, January 1 440,000
Cash and Cash Equivalents, December 31 570,000
 Sandra Company
Statement of Cash Flows
For the Year Ended December 31, 2019
(Amounts in Philippine Peso)

Cash Flow from Operating Activities

Profit Before Tax ₱ 320,000
Adjustments for:
Depreciation Expense ₱ 65,000
Loss on Sale of Equipment ₱ 75,000
Amortization of patents ₱ 50,000
Increase in Accounts Receivable ₱ (35,000)
Decrease in Inventory ₱ 80,000
Decrease in Accounts Payable ₱ (135,000)
Net Cash from Operating Activities ₱ 420,000

Cash Flow from Investing Activities

Sale of Equipment ₱ 200,000
Purchase of Equipment (2019-2018+275k) ₱ (350,000)
Net Cash used in Investing Activities ₱ (150,000)

Cash Flow from Financing Activities

Proceeds from Borrowing ₱ (300,000)
Proceeds from Issuance of Share Capital ₱ 260,000
Payment of Cash Dividend ₱ (100,000)
Net Cash provided by Financing Activities ₱ (140,000)
Increase in Cash and Cash Equivalents ₱ 130,000
Add: Cash and Cash Equivalents, January 1 ₱ 440,000
Cash and Cash Equivalents, December 31,2019 ₱ 570,000
 Angeline Company
Comparative Statement of Cash Flows
For the Year Ended December 31, 2019 and 2018
Amounts in Philippine Peso

2019 2018
Cash Flow from Operating Activities
Net Income ₱ 950,000 ₱ 760,000
Depreciation Expense ₱ 308,000 ₱ 240,000
Increase in Accounts Receivable ₱ (260,000) ₱ (210,000)
Increase in Inventory ₱ (518,000) ₱ (380,000)
Decrease/Increase in Prepaid Insurance ₱ 10,000 ₱ (90,000)
Increase in Accounts Payable ₱ 55,000 ₱ 345,000
Increase in Salaries Payable ₱ 30,000 ₱ 40,000
Increase in Utilities Payable ₱ 25,000 ₱ 15,000
Net Cash provided by Operating Activities ₱ 600,000 ₱ 720,000

Cash Flow from Investing Activities

Purchase of Equipment ₱ 680,000 ₱ 3,620,000
Net Cash used in Investing Activities ₱ (680,000) ₱ (3,620,000)

Cash Flow from Financing Activities

Increase in Bonds Payable ₱ 600,000 ₱ -
Issuance of Share Capital ₱ - ₱ 3,050,000
Payment of Cash Dividend ₱ (210,000) ₱ -
Net Cash provided by Financing Activities ₱ 390,000 ₱ 3,050,000
Increase in Cash and Cash Equivalents ₱ 310,000 ₱ 150,000
Add: Cash and Cash Equivalents, January 16 ₱ 150,000 ₱ -
Cash and Cash Equivalents, December 31 ₱ 460,000 ₱ 150,000