REQUIREMENTS

a. Ratio of 7:5
Ratio Net income Shares
Intellectual 0.58 350,000.00 ₱ 204,166.67
Lovable 0.42 350,000.00 ₱ 145,833.33
Total 1.00 ₱ 350,000.00

b. Interest on Ave. Capital; remainder equally

Intellectual, Capital Amount Months to Dec 31 Peso-months
Credits ₱ 580,000.00 12 ₱ 6,960,000.00
60,000.00 9 540,000.00
140,000.00 8 1,120,000.00
₱ 8,620,000.00

Debits 80,000 5 ₱ 400,000.00

Difference ₱ 8,220,000.00
Divide by: 12
Intellectual, Average Capital ₱ 685,000.00

Intellectual Lovable Totals

Interest on Ave. Cap. ₱ 117,833.33
Intellectual (685,000 x 10%) ₱ 68,500.00
Lovable (493,333.33 x 10%) ₱ 49,333.33
Balance: Equally 116,083.34 116,083.34 232,166.67
Totals ₱ 184,583.34 ₱ 165,416.67 ₱ 350,000.00

c. Salaries; End Capital Ratio

Intellectual Lovable Totals
Salaries ₱ 108,000.00 ₱ 90,000.00 ₱ 198,000.00
Balance: end capital ratio 81,846.15 70,153.85 152,000.00
Totals ₱ 189,846.15 ₱ 160,153.85 ₱ 350,000.00

d. Bonus not treated as expense; Ave. Capital Ratio

Intellectual Lovable Totals
Bonus (10%) ₱ 35,000.00 ₱ 35,000.00
Balance: ave. capital ratio 183,118.81 131,881.19 315,000.00
Totals ₱ 218,118.81 ₱ 131,881.19 ₱ 350,000.00
e. Bonus; Interest on Beg. Capital; 3:2 for Remaining Bal.
Intellectual Lovable Totals
Bonus (10%) 31,818.18 ₱ 31,818.18
Interest on Beg. Capital (6%) 34,800.00 25,200.00 60,000.00
Balance: 3:2 154,909.09 103,272.73 258,181.82
Totals ₱ 221,527.27 ₱ 128,472.73 ₱ 350,000.00

f. Interest on Excess Ave. Capital: Salaries; Bonus; End Capital

Intellectual Lovable Totals
Interest - Excess of Ave. Cap. (6%) ₱ 11,500.00 ₱ 11,500.00
Salaries 144,000.00 108,000.00 252,000.00
Bonus after interest and salaries 8,650.00 8,650.00
Balance: end capital 41,919.23 35,930.77 77,850.00
Totals ₱ 206,069.23 ₱ 143,930.77 ₱ 350,000.00

g. Interest on End Capital; Bonus; Salaries; Equally

Intellectual Lovable Totals
Interest on End Capital (10%) ₱ 70,000.00 ₱ 60,000.00 ₱ 130,000.00
Bonus after bonus and interest 20,000.00 20,000.00
Salaries 150,000.00 120,000.00 270,000.00
Balance: Equally -35,000.00 -35,000.00 -70,000.00
Totals ₱ 205,000.00 ₱ 145,000.00 ₱ 350,000.00
Lovabe, Capital Amount Months to Dec 31 Peso-months
Credits ₱ 420,000.00 12 ₱ 5,040,000.00
120,000.00 7 840,000.00
100,000.00 2 200,000.00
₱ 6,080,000.00

Debits ₱ 40,000.00 4 ₱ 160,000.00

Difference ₱ 5,920,000.00
Divide by: 12
Lovable, Average Capital ₱ 493,333.33

Intellectual, monthly salary 9,000.00

Multiply by: 12
Intellectual, net salary ₱ 108,000.00

Lovable, monthly salary 7,500.00

Multiply by: 12
Lovable, net salary ₱ 90,000.00

Intellectual, end cap. 700,000.00 0.54

Lovable, end cap. 600,000.00 0.46
Total ₱ 1,300,000.00 1.00

Bonus = 350,000 x 10% = 35000

Intellectual, Ave. Cap. 685,000.00 0.58 315,000

Lovable, Ave. Cap. 493,333.33 0.42 315,000
Total ₱ 1,178,333.33
Net income before bonus ₱ 350,000.00 B = (BR)(NIBB-B)
Bonus (318,181.82 x 10%) -31,818.18 B = (10%)(350,000-B)
Net income after bonus ₱ 318,181.82 B = 35,000-0.1B
1.1B = 35,000
B = 31,818.18

Beg. Cap. Interest rate Interest on Beg. Cap.

Intellectual 580,000.00 0.06 ₱ 34,800.00
Lovable 420,000.00 0.06 25,200.00
Total ₱ 60,000.00

Intellectual, Average Capital 685,000.00

Lovable, Average Capital -493,333.33
Total ₱ 191,666.67
Multiply by: 0.06
Intellectual, Interest ₱ 11,500.00

Monthly Salary Months in a period Net Salary

Intellectual 12,000 12 ₱ 144,000.00
Lovable 9,000 12 ₱ 108,000.00
₱ 252,000.00

B = (10%)(350,000-11,500-252,000)
B = 8,650

Intellectual, end cap. 700,000.00 0.54 77,850.00

Lovable, end cap. 600,000.00 0.46 77,850.00
Total ₱ 1,300,000.00 1.00

End Capital Rate Interest on End Cap.

Intellectual 700,000.00 0.1 ₱ 70,000.00
Lovable 600,000.00 0.1 ₱ 60,000.00
Total ₱ 1,300,000.00 ₱ 130,000.00

Monthly Salary Months in a period Net Salary

Intellectual 12,500.00 12 ₱ 150,000.00
Lovable 10,000.00 12 ₱ 120,000.00
₱ 270,000.00
B = (BR)(NI-I-B)
B = (10%)(350,000-130,000-B)
B = (10%) (220,000-B)
B = 22,000-0.1B
1.1B = 22,000
B = 20,000
₱ 183,118.81
₱ 131,881.19
₱ 315,000.00
(350,000-B)

₱ 41,919.23
₱ 35,930.77
₱ 77,850.00