Financial Analysis and Reporting

Prelim Activity 1. This will be recorded as your quiz

Financial Statements
Instructions:

1. Create a business of your own. Your business should be a corporation. NOTE: No duplication of
the nature of business.
2. Make a 2-year forecasted financial statements for your business: balance sheet, income
statement, and statement of cash flow. Attach your Notes to the Financial Statements
(Assumptions) as well.
3. Submit your answers in a power point presentation.
4. Print your presentations and submit in a short-sized bond paper, stapled.
5. Be ready to present and share your answers in class.

Example format below:

Business Name: AJ and Sons Drugstore Incorporated

Business Description: The business is a private corporation selling medicine and other goods such as
soap, shampoo, baby oil, lotion, bottled water, etc.

Example of NOTES TO THE FINANCIAL STATEMENTS: (20 points)

a. The Sales of the business will come from selling of medicines and other products.
b. Sales is forecasted to increase 10% for the preceding year.
c. Cost of Sales is 4% of sales.
d. Salary for 3 personnel is 600 pesos daily, each are working for 20 days in a month.
e. Utilities expense (water and electricity) is Php 5,000 per month
f. Tax is 25% of net income.
g. Beginning Cash Balance is Php 1,000,000.
h. Beginning Capital is Php 10,000,000.
i. Total loan is Php 2,000,000 payable in 2 installments with 10% interest per year and to be paid
starting year 2.

FINANCIAL STATEMENTS

a. Balance Sheet (25 points)

b. Income Statement (25 points)
c. Statement of Cash Flows (25 points)

Presentation and printed output (15 points)

Note: Make your work as simple as possible. Be concise and straightforward. You will be presenting
your output starting January 29, 2024.