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Solution:

Cash P 10,000
Accounts Receivable (0.25 x P100,000) 25,000
Inventory (0.1 x P100,000 x 0.55) 5,500
Fixed Assets 75,000
Total Assets Required P 115,500

Solution:
Sales Forecast (P7M x 1.1) P 7,700,000
Operating Costs (P3M x 1.1) 3,300,000
EBIT 4,400,000
Interest 200,000
Earnings before tax 4,200,000
Income Tax (P4,200,000 x 0.4) 1,680,000
Net Income 2,520,000
Dividends (P2,520,000 x 0.5) 1,260,000
Increase in Retained Earnings P 1,260,000

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