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  • 07 ACTIVITY 1 Entrep

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    Bea Lear Basiño
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    The document contains a student's responses to a scenario using a P-M-I chart. In response 1, the student analyzes the statement of financial position for years 200A and 200B for Wendy Services Inc., noting the total assets and liabilities. In response 2, the student analyzes the income statement for both years, noting the service revenue, net sales, and net income. The student decides that the loan sharks should use the income statement to determine whether to accept or reject Wendy Services Inc.'s loan request, as it shows the company's profitability and ability to handle expenses.

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    07 ACTIVITY 1 entrep

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    The document contains a student's responses to a scenario using a P-M-I chart. In response 1, the student analyzes the statement of financial position for years 200A and 200B for Wendy Services Inc., noting the total assets and liabilities. In response 2, the student analyzes the income statement for both years, noting the service revenue, net sales, and net income. The student decides that the loan sharks should use the income statement to determine whether to accept or reject Wendy Services Inc.'s loan request, as it shows the company's profitability and ability to handle expenses.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    5 views2 pages

    07 ACTIVITY 1 Entrep

    Uploaded by

    Bea Lear Basiño
    The document contains a student's responses to a scenario using a P-M-I chart. In response 1, the student analyzes the statement of financial position for years 200A and 200B for Wendy Services Inc., noting the total assets and liabilities. In response 2, the student analyzes the income statement for both years, noting the service revenue, net sales, and net income. The student decides that the loan sharks should use the income statement to determine whether to accept or reject Wendy Services Inc.'s loan request, as it shows the company's profitability and ability to handle expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    NAME:Basiño, Bea Lear S.

    SECTION:BSTM504

    Instruction: Respond to the scenario below by using P-M-I Chart. Write your
    answers on the spaces provided.

    Response 1: Statement of Financial Position

    Plus Minus

    It shows the total assets. As you can This reveals the earnings of the
    see in 200A there’s 514, 745 and in business which is, The Wendy
    200B there’s 651,990. You can also Services Inc. Earned 2019 was 651,
    see the total liabilities in 200A there’s 990.00 and the year 2020 they earned
    86,240. It cleanly indicated the assets 514,745.00. And the total of their
    that the business owned. liabilities and owners equity are the
    same of their asset. Meaning, this
    business is already bankrupt due to
    their loans.

    Interesting

    It basically showed how the business stand in terms of assets and liabilities. It is
    interesting to see that the company have more accounts receivable (119,350)
    than accounts payable (53,900)in 200A. Basically, you can see here how much
    money Wendy Services Inc. Owe. It also interesting in 200B where you can see
    that the total liabilities (144,840)is quite big, but it can manage through the
    amount of the assets. They are still gaining, but their service business doesn’t
    have any assets that can have money to pay if they’re ever able to lend.

    Response 2: Income Statement


    Plus Plus

    It indicates Wendy Services Inc.’s In the financial situation, the income


    income and expenditures. Wendy statement looks the same since they
    Services Inc.’s financial statement earned service revenue of 90,000.00 in
    shows the net income for the entire 2029 and service revenue of 60,000.00
    year which demonstrates whether in 2020. Then, concentrate on their net
    there is benefit or loss. sales as they got 550,000.00 in 2019,
    but they only got 250,000.00 in the
    year 2020. This means that the year
    2020 is diminishing.

    Interesting

    The income statement basically showed the profit-and-loss in the Wendy Services
    Inc. It is interesting to see in 200B that the Wendy Services Inc.’s net income is
    550,000.00 and is quite larger than the total
    My Decision: My decision on this one is that the Loan Sharks should use income
    statement as a basis on whatever they will accept or reject Wendy Services Inc.’s
    request. Because, it basically shows the company’s profit-and-loss. You can also
    see here the profit of Wendy Services Inc. and how responsible they are in
    handling the expenses of their company. If the Shark Loans that the Wendy
    Services Inc. profitable, they will easily accept their request. If they see that the
    loss is more than the net income, the Shark Loans might reject Wendy Services
    Inc.’s request.

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