186 Income Siatement For the Year Ended June 30, 2020 Net sales Cost of gueds sold (including depreciation of P191,500, Operating expenses (including depreciation P2,430,500 P1,073,000 of P100,000) Interest expense Gain on sale of equipment Gain on sale of trading securities Unrealized holding gain on trading securities 500,000 7,500 (26,000) (15,000) (44,000) 356.000 P1,851.500 P 579,000 Income tax Total Net income ======= Texas Company Balance Sheets June 30 Assets 2020 2019 Cash P532,000 P442,000 325.000 Trading Securities(market) Accounts receivable 275,000 141,500 80,500 86,000 168,500 450,000 43,000 1,095,000 Inventories Investrment in Associates (cos:) 43.000 321,500 Land Puildings (net) Equipment (net) Total assets 352,000 P3,057,100 242,500 P1,540,500 ===== === == Liabilities & Equity P 93,500 P107,500 50,000 41,500 156,500 Accounts payable Short-term bank Joans payable Accrued operating expenses Income tax payable Bonds payable (net) Common stock, P'10 par value Additional paid in capital Retained earnings Total liabilities & equity 50,000 20,500 143,00 980,000 550,000 500,000 250,000 400,000 820,000 P3,057.000 435,000 P1,540,500 REQUIRED: 1. Prepare a forecast cash flow statement for the year ended June 30, 2020 2. Show supporting schedules or T-accounts for many missing amounts
186 Income Siatement For the Year Ended June 30, 2020 Net sales Cost of gueds sold (including depreciation of P191,500, Operating expenses (including depreciation P2,430,500 P1,073,000 of P100,000) Interest expense Gain on sale of equipment Gain on sale of trading securities Unrealized holding gain on trading securities 500,000 7,500 (26,000) (15,000) (44,000) 356.000 P1,851.500 P 579,000 Income tax Total Net income ======= Texas Company Balance Sheets June 30 Assets 2020 2019 Cash P532,000 P442,000 325.000 Trading Securities(market) Accounts receivable 275,000 141,500 80,500 86,000 168,500 450,000 43,000 1,095,000 Inventories Investrment in Associates (cos:) 43.000 321,500 Land Puildings (net) Equipment (net) Total assets 352,000 P3,057,100 242,500 P1,540,500 ===== === == Liabilities & Equity P 93,500 P107,500 50,000 41,500 156,500 Accounts payable Short-term bank Joans payable Accrued operating expenses Income tax payable Bonds payable (net) Common stock, P'10 par value Additional paid in capital Retained earnings Total liabilities & equity 50,000 20,500 143,00 980,000 550,000 500,000 250,000 400,000 820,000 P3,057.000 435,000 P1,540,500 REQUIRED: 1. Prepare a forecast cash flow statement for the year ended June 30, 2020 2. Show supporting schedules or T-accounts for many missing amounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:186
Incume Siatement
For the Year Ended June 30, 2020
Net sales
Cost of gueds sold (including depreciation
P2.430,500
Operating expenses (including depreciation
P1,073,000
of P100,000)
Interest expense
500,000
7,500
Gain on sale of equipment
Gain on sale of trading securities
Unrealized holding gain on trading securities
(26,000)
(15,000)
(44,000)
356,000
P1,851.500
P 579,000
Income tax
Total
Net income
Texas Company
Balance Sheets
June 30
2020
P532,000
Assets
2019
Cash
P442,000
Trading Securities(market)
275,000
141,500
168,500
450,000
43,000
325.000
Accounts receivable
80.500
86,000
Inventories
Investrient in Associates (cost)
Land
43.000
1,095,000
321,500
Buildings (net)
Equipment (net)
Total assets
352,000
P3,057,100
242,500
P1,540,500
Liabilitjes & Equity
P 93,500
P107,500
50,000
Accounts payable
Short-term bank loans payable
Accrued operating expense:
Income tax payable
Bonds payable (net)
('ommon stock, P10 par value
Additional paid in capital
Retained earnings
Total liabilities & equity
50,000
20,500
41,500
143,00
156,500
980,000
550,000
500,000
250,000
435,000
P1,540,500
400,000
820,000
P3,057.000
SE' =
REQUIRED:
1. Prepare a forecast cash flow statement for the year ended June 30. 2020
2. Show supporting schedules or 1-accoounts for miany missing anuounts.
Transcribed Image Text:Exercise 5-9
During the next fiscal year ending June 30.2020, Texas Company will make
substantial investments in new product lines and in a modernization program.
Significant changes to be made during the year are listed below:
1. Equipment with a net book value of P86,000 will be sold during the year.
2. All of the capital stock of Ohio Company will be exchanged with 5,000
shares of Texas Company at a time when the market value is P40 per share.
P250,000 cash will also be given as part payment.
3. Bonds having a face value of P1,000,000 will be issued on June 30, 2020 at
98%.
4. Trading securities carried at market value of P200,000 will be sold for
P215,000.
5. New equipment will be purchased during the year.
6. A new building will be purchased at a cost of P1,000,000, although there are
no building retirements.
7. Cash dividends will be paid to stockholders.
The financial statements forccast for the year ended June 30, 2020 are given
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