NAME: ALEJAGA, ANDREA MONIQUE MAHINAY

YEAR AND COURSE: FIRST YEAR- BSA

BSA 105 – FINANCIAL MANAGEMENT
ASSIGNMENT ON WEEK 2
The following are the financial position and income statement data of Simple Company:
2017 2018
Cash 150,000 283,000
Marketable Securities 850,000 1,000,000
Accounts Receivable, net 500,000 1,000,000
Inventory 750,000 500,000
Land 500,000 500,000
Building, net 550,000 500,000
Machinery and Equipment, net 1,700,000 1.500,000
Goodwill 400,000 400,000
Deferred Charges 100,000 90,000
Notes Payable, trade 100,000 150,000
Account Payable, trade 610,000 790,000
Accrued Expenses 40,000 60,000
Long-term Notes Payable 2,500,000 2,250,000
15% Preferred Stock, P100 par 500,000 500,000
Common Stock, P10 par 1,500,000 1,500,000
Retained Earnings 250,000 523,000
Sales 5,250,000
Sales returns and Allowance 250,000
Inventory, December 31, 2018 500,000
Inventory, December 31, 2017 750,000
Purchases 2,750,000
Selling Expenses 400,000
Administrative Expense (including depreciation of P250,000) 600,000
Interest on Long-term notes 250,000
Income Taxes, 30%

Additional Information:
Dividends paid on preferred stock 75,000
Dividends paid on common stock 177,000
Market price per share of common stock 18

REQUIREMENTS:
1. Prepare comparative Statement of Financial Position for 2017 and 2018, showing currency and
% increases or decrease (Horizontal Analysis).
2. Provide the amounts for the unknown totals.
3. Write your answer using the format below, you have to write the account title, and round off
percentages to decimal places (you can use excel file).
INCREASE (DECREASE)
ASSETS 2017 2018 AMOUNT %
Current Assets:
Cash 150 000 283 000 133 000 88.67%
Marketable Securities 850 000 1 000 000 150 000 17.65%
Accounts Receivable, net 500 000 1 000 000 500 000 100%
Inventories 750 000 500 000 (250 000) (33.33)%
Total Current Assets 2 250 000 2 783 000 533 000 23.69%
Non-current Assets
Land 500 000 500 000 0 0.00%
Building, net 550 000 500 000 (50 000) (9.09)%
Machinery & Equipment, net 1 700 000 1 500 000 (200 000) (11.76)%
Goodwill 400 000 400 000 0 0.00%
Deferred Charges 100 000 90 000 (10 000) (10)%
Total Non-current Assets 3 250 000 2 990 000 (260 000) (8)%
TOTAL ASSETS 5 500 000 5 773 000 273 000 4.96%

LIABILITIES AND EQUITY

Current Liabilities:
Notes payable, Trade 100 000 150 000 50 000 50%
Accounts Payable, Trade 610 000 790 000 180 000 29.51%
Accrued Expenses 40 000 60 000 20 000 50%
Total Current Liabilities 750 000 1 000 000 250 000 33.33%
Non-current Liabilities
Long-term Notes Payable 2 500 000 2 250 000 (250 000) (10)%
Total Liabilities 3 250 000 3 250 000 0 0.00%
EQUITY:
15% Preferred Stock, P100 par 500 000 500 000 0 0.00%
Common Stock, P10 par 1 500 000 1 500 000 0 0.00%
Retained Earnings 250 000 523 000 273 000 109.20%
Total Equity 2 250 000 2 523 000 273 000 12.13%
TOTAL LIABILITIES AND EQUITY 5 500 000 5 773 000 273 000 4.96%