PERFORMANCE TASK

FUNDAMENTALS IN ACCOUNTANCY BUSINESS AND MANAGEMENT 2

BUSINESS FINANCE

Preparation of Projected Financial Statement

PROJECTED SALES

PROJECTED NET SALES 2023

= Net Sales 2022 x 10%
= Php5,250,000 x .10 = 525,000
= Php5,250,000 + 525,000 = Php5,775,000

PROJECTED COST OF SALES 2023

= Gross Profit 2022 ÷ Net Sales 2022
= Php945,000 ÷ 5,250,000 = .18 ( 18% )
= Projected Net Sales 2023 x 18%
= Php5,775,000 x .18 = Php1,039,500
= Php5,775,000 – 1,039,500
= Php4,735,500

PROJECTED OPERATING EXPENSES 2023

= Variables ( 5% x Net Sales 2023 ) = Php5,775,000 x .05 = Php288,750
= Depreciation Expense = Php5,200,000 + 1,000,000 = Php6,200,000 x 5% = Php310,000
= Php288,750 + 310,000 = Php598,750

INTEREST EXPENSE
First Loan
= January 1 to June 30, 2023 ( 6mos )
= Php1,250,000 x 8%
= Php100,000 ÷ 2
= Php50,000

Second Loan
= June 30 to December 31, 2023 ( 6mos )
= Php3,000,000 x 8%
= Php240,000 ÷ 2
=Php120,000

New Loans
= June 30 to December 31, 2023 ( 6mos )
= Php3,500,000 - 1,000,000
=Php2, 500, 000 X 8%
= Php200,000 ÷ 2
= Php100,000

INCOME TAX EXPENSE

Income Before tax
= Php170,750

Income Tax ( 30% )

= Php170,750 x .30
= Php51,225

Net Income After Tax

= Php170,750 – 51,225
= Php119,525
CASH 2023
= Cash 2022 ÷ Net Sales 2022 x Net Sales 2023
= Php1,060,000 ÷ 5,250,000 x 5,775,000
=Php1,166,000

TRADE ACCOUNTS RECEIVABLE 2020

= Accounts Receivable 2022 ÷ Net Sales 2022 x Net Sales 2023
= Php2,300,500 ÷ 5,250,000 x 5,775,000
= Php2,530,550

INVENTORIES 2023
= Inventories 2022 ÷ Net Sales 2022 x Net Sales 2023
= Php4,850,000 ÷ 5,250,000 x 5,775,000
= Php5,335,000

OTHER CURRENT ASSETS 2023

= Other Current Assets 2022 ÷ Net Sales 2022 x Net Sales 2023
= Php1,050,000 ÷ 5,250,000 x 5,775,000
= Php1,155,000

PROPERTY, PLANT AND EQUIPMENT, NET 2023

= Php2,440,000 + 1,000,000
= Php5,200,000 + 1,000,000 x 5%
= Php3,440,000 – (6,200,000 x 5%)
= Php3,440,000 – 310,000
= Php3,130,000

TRADE ACCOUNTS PAYABLE 2023

= Trade Payable 2022 ÷ Net Sales 2022 x Net Sales 2023
= Php5,050,000 ÷ 5,250,000 x 5,775,000
= Php5,555,000

LONG TERM DEBT, NET CURRENT PORTION

= Current and Long Term Debt
= Php2,000,000 + 3,500,000 December 31, 2023
= Php5,500,000

RETAINED EARNINGS
= Retained earnings + Net income - Dividends
= Php2,122,069 + 119,525 – 300,000
= Php1,941,594

EXTERNAL FUNDS NEEDED ( EFN ) 2023

= Change in Total Assets – ( Change in Total Liabilities - Total Change in Stockholder’s Equity )
= Php1,616,023 – (1,739,286.25 - 180,475 )
= Php57,211.75
 A Company
Income Statement
For The Year Ended December 31, 2022
Net Sales Php5,775,000
Cost of Sales 4,735,500
Gross Profit Php1,039,500
Operating Expenses 598,750
Operating Income Php440,750
Interest Expense 270,000
Income Before Tax 170,750
Income Tax 51,225
Net Income After tax Php119,525

A Company
Statement of Financial Position
As of December 31, 2022
Assets
Current Assets
Cash Php1,166,000
Accounts Receivable 2,530,550
Inventories 5,335,000
Other Current Assets 1,155,000
Total Current Assets Php10,186,550

Non - Current Assets

Property, Plant and Equipment, Net 3,130,000
Other Non - Current Assets 835,689
Total Non – Current Assets 3,965,689
Total Assets Php14,152,239

Liabilities and Equity

Current Liabilities
Notes Payable ( EFN ) Php57,211.75
Trade Payable 5,555,000
Income Taxes Payable 12,806.25
Current Portion of Long Term Debt 2,000,000
Other Current Liabilities 85,600
Total Current Liabilities Php7,710,618

Non – Current Liabilities

Long Term Debt, Net Current Portion Php3,500,000
Total Liabilities Php11,210,618

Stockholder’s Equity
Capital Stock Php1,000,000
Retained Earnings 1,941,594
Total Stockholder’s Equity Php2,941,594
Total Liabilities and Stockholder’s Equity Php14,152,212