Meallenials

Budgeted Statement of Financial Position

For The Year Ended December 31, 2020

Note
Sales
Sales Revenue PHP 2,400,000.00
Less: Cost of Sales 1 PHP 985,470.00
Gross Profit PHP 1,414,530.00
Operating Expenses:
Salaries and Wages 2 PHP 504,000.00
Advertising Expense 2,500.00
Permits and licenses 1,500.00
Utilities Expense 36,000.00
Depreciation 3 19,386.20
Repairs and Maintenace 1,443.80
Interest Expense 9,700.00 PHP 574,530.00
Income Before Tax PHP 840,000.00
Tax (30%) PHP 252,000.00
Net Income PHP 588,000.00
Note 1
Beg. Inventory PHP -
Purchases PHP 990,675
Less: Purchase Discount PHP 9,855
Purchase Returns and Allowance 350 10,205
Net Purchases PHP 980,470
Add: Freight-In 5,000 985,470
Cost of Goods Available for Sale PHP 985,470
Less: End. Inventory -
Cost of Goods Sold PHP 985,470

Note 2
Salaries and Wages - Beldia PHP 84,000
Salaries and Wages - Claver 84,000
Salaries and Wages - Guiamalodin 84,000
Salaries and Wages - Patnubay 84,000
Salaries and Wages - Salvador 84,000
Salaries and Wages - Sarno 84,000
Total Salaries and Wages PHP 504,000

Note 3
Depreciation - Building PHP 12,000.00
Depreciation - Furniture and Fixtures 3,556.20
Depreciation - Equipment 3,830.00
Total Depreciation PHP 19,386.20
 MEALLENIALS
Statement of Changes in Partners' E
For Year Ended December 31, 20

Sarno, Capital Beldia, Capital

Capital, January 1 PHP 37,500.00 PHP 22,500.00
Add: Additional Investment PHP - PHP -
Net Income
Less: Withdrawals PHP 123,250.00 PHP 73,950.00
Capital, December 31

Partners Partners' Ownership Interest

Sarno 25%
Beldia 15%
Guiamaodin 15%
Salvador 15%
Patnubay 15%
Claver 15%
Total 100%
 MEALLENIALS
Statement of Changes in Partners' Equity
For Year Ended December 31, 2020

Guiamalodin, Capital Salvador, Capital Patnubay, Capital Claver, Capital

PHP 22,500.00 PHP 22,500.00 PHP 22,500.00 PHP 22,500.00
PHP - PHP - PHP - PHP -

PHP 73,950.00 PHP 73,950.00 PHP 73,950.00 PHP 73,950.00

 Total
PHP 150,000.00
PHP -
PHP 588,000.00
PHP 493,000.00
PHP 245,000.00
 Meallenial
Budgeted Statement of Financial Positio
December 31, 20

ASSETS
Current Assets
Cash PHP 100,557.00
Accounts Receivable 15,000.00
Other Current Assets 20,000.00
Total Current Assets 135,557.00
Noncurrent Assets
Equipment PHP 38,300.00
Building 180,000.00
Accumulated Depreciation - 19,386.20
Furnitures and Fixtures 35,562.00 234,475.80
Total Noncurrent Assets 234,475.80

TOTAL ASSETS PHP 370,032.80

LIABILITIES AND OWNERS' EQUITY

LIABILITIES
Current Liabilities
Accounts Payable 22,750.00
Taxes Payable 5,282.80
Total Current Liabilities 28,032.80
Noncurrent Liabilities 97,000.00
Total Liabilities 125,032.80
Equity
Partners' Capital 245,000.00

TOTAL LIABILITIES AND OWNERS' EQUITY PHP 370,032.80

 Meallenials
Statement of Cash Flow
For the Year Ended December 31, 2020

Cash Flow from Operating Activities

Cash received from customers PHP 2,385,000.00
Cash paid to suppliers 962,720.00
Cash paid for operating expenses 545,443.80
Interest paid 9,700.00
Income tax paid 246,717.20
Cash paid for store supplies 20,000.00
Net cash provided by Operating Activities PHP 600,419.00
Cash Flow from Investing Activities
Purchase of Fixed Assets paid in cash - 253,862.00
Cash Flow from Financing Activities
Cash received from investment of owner 150,000.00
Cash received from bank loan 97,000.00
Cash paid to owner - withdrawal 493,000.00
Net cash used from Financing Activities - 246,000.00
Net Increse (Decrease) in cash for the year 100,557.00
Add: Cash - January 1, 2020 -
Cash - December 31, 2020 PHP 100,557.00
 Current Ratio Current ratio
Current Assets Current Liabilities Ratio The computed current r
assets. The business fir
PHP 135,557.00 PHP 28,032.80 4.84 indicates short-term fin
combined precentage o
used to pay short-term
Return on Asset conversion cycle of rece
Net Income Total Assets Ratio  
Quick ratio
PHP 588,000.00 PHP 370,032.80 1.59 The quick ratio 4.12 can
business firm has ample
Return on Sales has 4.12 times as much
assets particularly cash
Operating Income Sales Ratio since they only maintain
PHP 849,700.00 PHP 2,400,000.00 0.35  
Return on asset
The computed rate of re
Total Asset Turnover its resources and as wel
1.59 is quite good. This
Sales Total Assets Ratio
PHP 2,400,000.00 PHP 370,032.80 6.49 Return on sales
The computed rate on r
in profits. This also sho
Debt to Equity efficiency increases, so d
Total Liabilities Total Equity Ratio  
Total Asset turn-over
PHP 125,032.80 PHP 245,000.00 0.51 The computed total ass
under-utilization of reso
For every ₱1 worth of a
Quick ratio productive and efficient
Quick Assets Current Liabilities Ratio
PHP 115,557.00 PHP 28,032.80 4.12 Debt-to-Equity ratio
The debt equity ratio is
business, ₱0.51 was fin
paying huge interests pa
financing rather than of
 
 
 
 
Current ratio
The computed current ratio is 4.84 signifying no difficulty paying short-term obligations with its current
assets. The business firm has high capacity to pay its bills. It has adequate net working capital which
indicates short-term financial stability of the business. Analyzing the components of current assets, the
combined precentage of Cash (74%) and Accounts Receivable (11%) are 85% which can be readily be
used to pay short-term liabilities. In addition, the cuurent ratio is also be an indication of faster
conversion cycle of receivables.
 
Quick ratio
The quick ratio 4.12 can be a sign of excellent financial soundness. Its liquidity position is good, thus the
business firm has ample current assets to meet its current liabilities in time. This would suggest that it
has 4.12 times as much as cash as it owes. The business firm has heavy reliance on their most liquid
assets particularly cash and accounts receivables in terms of paying off their short-term obligations
since they only maintain and handle appropriate levels of inventory to avoid spoilage.
 
Return on asset
The computed rate of return on assets which is 1.59 indicates that the business is up to par in managing
its resources and as well as to generate profits. Since the business belongs to a food processing industry,
1.59 is quite good. This can be improve by boosting productivity while decreasing cost.

Return on sales
The computed rate on return on sales implies how proficient the firm use its resources to convert sales
in profits. This also shows how well the company manages its whole operation. As the revenues and
efficiency increases, so do profits.
 
Total Asset turn-over
The computed total asset turn-over belongs to a range that is favorable and it shows no indication of
under-utilization of resources and presence of idle capacity. The higher the ratio, the higher the return.
For every ₱1 worth of assets, the business firm generated ₱6.49 worth of profits. The business firm is
productive and efficient on the management of their assets on hand.
Debt-to-Equity ratio
The debt equity ratio is 0.51:1 which means that for every ₱1 financed by the owner in the assets of the
business, ₱0.51 was financed by the creditors. This is favorable to the business firms since the risk of
paying huge interests payments can be avoided. This is a good sign since the firm is managed via equity-
financing rather than of debt-financing. The extent of total assets is fianced by partner’s investment.
 
 
 
 
 Payback Period
Net Investment Net Annual Operating Cash Flow Year/s

PHP 253,862.00 PHP 100,557.00 2.52