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Basic Finance Exercice 2
Basic Finance Exercice 2
Basic Finance Exercice 2
Use the following information for the next questions. Use the space provided for your solution
and presentation. Total of 10pts (2pts each)
1. How much is the total current assets?
Current Assets
Cash P50,000.00
Account Receivable 30,000.00
Notes Receivable 45,000.00
Inventory 55,000.00
Prepaid Supplies 15,000.00
Total Current-Asset P195,000.00
Notes payable (300,000 – 50,000 due within the year, 250,000 re classified as noncurrent)
5. How much are the total assets and the total liabilities?
Assets
Current Assets P555,000
Non-current Liabilities 250,000
Total Liabilities P805,000
Entity A
Statement of Financial Position
As of December 31, 2018
Asset
Current Asset
Cash on Hand 120,000
Cash on Bank 2,000,000
Accounts Receivable 4,000,000
Allowance of Doubtful Accounts (600,000)
Advances to Employees 80,000
Advances to Supplier 60,000
Inventory 2,400,000
Prepaid Insurance 1,600,000
Total Current Asset 9,660,000
Non-Current Asset
Land 4,400,000
Building 6,800,000
Accumulated Depreciation – Building (4,000,000)
Total Non-current 7,800,000
Total Assets 16,860,000
Liabilities
Current Liabilities
Accounts Payable 1,440,000
Accrued Liabilities 160,000
Income Tax Payable 1,000,000
Interest Payable 680,000
Total Current Liabilities 3,280,000
Non-current Liabilities
Notes Payable 6,000,000
Discount on Notes Payable (1,740,000)
Total Non-current Liabilities 4,260,000
Total Liabilities 7,540,000
Capital
Owner’s Capital 9,320,000
Total Liabilities and Capital 16,860,000