Income Statement of Janet Tan

For the year ended December 31, 2020

Sales gross Revenue) P100,000

Cost of sakes

Inventory 1/1/2020 20,000

Purchases 50,000

Freight in 5,000

Total goods available for sale 75,000

Inventory 12/31/2020 20,000

Cost of goods sold 55,000

Gross profit 45,000

Operating expenses:

Salaries and wages (50x50) 2,500

Depreciation expense 9000
45,000-0
5years
Repairs and maintenance
10,000
Telephone and postage 600

Total operating 22,100

Operating income 22,900

Finance cost

Interest expense on loan 15,000 x 4% 600

From janet’s father

Interest expense on loan

40,000 x 5% 2000

2600

20,300
From first National Bank

Total finance cost

Net income

Income statement of Janet Tan

For the year ended December 31, 2020

Sales (Gross Revenue) (100,000+50,000) P150,000

Cost of sales

Inventory 1/1/2020 20,000

Purchases 50,000

5,000
Freight in

Total goods available for sale 75,00

0
Inventory 12/31/2020
20,000

Cost of goods sold 55,00

0
Gross profit 95,000

Operating expense:

Salaries and wages (50x50) 2,500

Depreciation expense 9,000

45,000-0

5years

Repairs and maintenance

10,000
Telephone and postage
600

Total eperating 22,100

Operating income P72,900

Finance cost

Interest expence on loan (15,000 x 4%) 600

From janet’s father

Interest expense on loan (40,000 x 5%) 2,000

From first National Bank

Total finance cost 2,600

Net income P70,300
 Balance sheet of Janet Tan

December 31, 2020

Assets

Current assets

Cash P 44,000

Inventory 20,000

Supplies 2,000

Total current assets P 66,000

Noncurrent assets

Property plant and equipment

Service truck 45,000

- 9,000 36,000

1,000

4,000
Accumulated depreciation

Storage tank

Office equipment

Total noncurrent assets 41,000

66,000
Total assets 107,100

Liability and owners’ equity

Current liability
15,000
Loan payable (janet father)

Noncurrent liability
+ 32,000
Loan payable ( first national bank)

Total liabilities 47,000

Owners’ equity

Tans capital (20,000 + 70,300)

90,300
Tans withdrawal
- 30,200

Net owners’ equity 60,100

Total liabilities and owners’ equity 60,100

107,100
+ 47,000
 Profitability analysis model for Janet Tan

Sales % Cash 44,100 Service truck 36,000 Current liabilities

150,000 Inventory 20,000 Storage tank 1,000 15,000
Cost of sales% Supplies 2,000 Office equipment 4,000 Noncurrent liabilities
55,000 32,000
150,000 =37% Current assets
66,000
Gross margin % Noncurrent assets Liabilities
95,000 41,000 47,000
150,000 =63% Owners’ equity
Operating expense % 60,100
22,100 Sales %
150,000 =15% 150,000
Total assets Total Liabilities and
107,100 owners equity
Gross margin %
107,000
95,000
Owners’ equity
150,000 =63%
60,100
Operating expense %
22,100
150,000 =15%

Return of sales Assets turnover

70,300 150,000
150,000 =47% 107,100 =1,40

Rate of return Leverage

70,300 107,100
107,100 =66% 60,100 =1.78

Rate of return on owners Equity

70,300
60,100 =1.17