HILL COMPANY

STATEMENT OF CASH FLOWS

Year ended December 31, 2010

Cash Flows from Operating Activities

Net Income 1,500,000.00
Accumulated depreciation 350,000.00
Increase in accounts receivable (650,000.00)
Increase in inventory (750,000.00)
Decrease in prepaid expenses 50,000.00
Increase in accounts payable 250,000.00
Decrease in accrued expenses (150,000.00)
Net cash flows from operating activities 600,000.00

Cash Flows from Investing Activities

Purchase of property, plant and equipment (1,000,000.00)

Cash Flows form Financing Activities

Proceeds from issue of share capital 500,000.00
Payment of dividend (300,000.00) 200,000.00

Net decrease in cash and cash equivalents (200,000.00)

Cash and cash equivalents at the beginning of period 950,000.00
Cash and cash equivalents at the end of period 750,000.00
 YOUTH COMPANY
Income Statement
Year ended December 31, 2010

Note
Net sales revenue
Cost of goods sold
Gross income
Expenses:
Distribution costs
Administrative expenses
Other expense
Income before tax
Income tax expense
Net income
1 ₱ 8,870,000.00
2 5,900,000.00
₱ 2,970,000.00
3 ₱ 690,000.00
4 580,000.00
5 340,000.00 ₱ 1,610,000.00
₱ 1,360,000.00
360,000.00
₱ 1,000,000.00
Note 1 - Net sales revenue

Sales 9,070,000.00
Sales returns and allowances (200,000.00)
Net sales revenue 8,870,000.00

Note 2 - Cost of goods sold

Beginning inventory 1,500,000.00

Purchases 5,750,000.00
Transportation in 150,000.00
Purchase discounts (100,000.00)
Goods available for sale 7,300,000.00
Ending inventory (1,400,000.00)
Cost of goods sold 5,900,000.00

Note 3 - Distibution costs

Depreciation - store equipment 110,000.00

Store supplies 80,000.00
Sales salaries 500,000.00
Total 690,000.00

Note 4 - Administrative expenses

Officers' salaries 400,000.00

Depreciation - building 120,000.00
Office supplies 60,000.00
Total 580,000.00

Note 5 - Other expense

Uninsured flood loss 340,000.00

 SIMPLE COMPANY
STATEMENT OF FINANCIAL POSITION
December 31, 2010

ASSETS
Current Assets Note
Cash ₱ 420,000.00
Financial asset at fair value 250,000.00
Trade and other receivables 1 620,000.00
Inventories 2 1,250,000.00
Prepaid insurance 20,000.00
Total current assets ₱ 2,560,000.00

Non-current Assets
Property, plant and equipment 3 ₱ 4,640,000.00
Long-term investments 4 2,000,000.00
Intangible assets 5 300,000.00
Total non-current assets ₱ 6,940,000.00

Total Assets ₱ 9,500,000.00

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Trade and other payables 6 ₱ 620,000.00
Serial bonds payable - current portion 500,000.00
Total current liabilities ₱ 1,120,000.00

Non-current Liabilities
Serial bonds payable - remaining portion 2,000,000.00

Shareholders' equity
Share capital ₱ 5,000,000.00
Share premium 500,000.00
Retained earnings 880,000.00
Total shareholders' equity ₱ 6,380,000.00

Total Liabilities and Shareholders' Equity ₱ 9,500,000.00

Note 1 - Trade and other receivables

Accounts receivable 500,000.00

Allowance for doubltful accounts (50,000.00)
Notes receivable 150,000.00

Claim receivable 20,000.00

Total 620,000.00

Note 2 - Inventories

Finished goods 400,000.00

Goods in process 600,000.00
Raw materials 200,000.00
Factory supplies 50,000.00
Total 1,250,000.00

Note 3 - Property, plant and equipment

Cost Accum. Dep.
Land 1,500,000.00
Building 4,000,000.00 1,600,000.00
Machinery 2,000,000.00 1,300,000.00
Tools 40,000.00
Total 7,540,000.00 2,900,000.00

Note 4 - Long-term investments

Financial asset at amortized cost 1,500,000.00

Plant expansion fund 500,000.00
Total 2,000,000.00

Note 5 - Intangible assets

Franchise 200,000.00
Goodwill 100,000.00
Total 300,000.00

Note 6 - Trade and other payables

Accounts payable 300,000.00

Notes payable 100,000.00
Income tax payable 60,000.00
Advances from customers 100,000.00
Accrued expenses 30,000.00
Accrued interest on note payable 10,000.00
Employees income tax payable 20,000.00
Total 620,000.00
Carrying Amount
1,500,000.00
2,400,000.00
700,000.00
40,000.00
4,640,000.00