3. Curve and Big Daddy Blaise are both apparel retailers offering plus-sized clothes as part of the "Rise Above Body-Shaming" movement that started on 2016. The financial statements of Shannon's Curve and Big Daddy Blaise for year 2019 are as follows: Statement of Profit or Loss for the year 2019: Shannon's Curve P2,580,000 (200,000) 2,380,000 (865,000) (339,000) (250,000) 926,600 Big Daddy Blaise P2,000,000 (230,000) 1,770,000 (500,000) (256,000) (100,000) 914,000 Sales Cost of Goods Sold Gross Profit Administrative Expense Selling Expenses Finance Cost Net Profit Statement of Financial Position for the year 2019: Shannon's Curve Big Daddy Blaise ASSETS P5,300,000 250,000 400,000 300,000 P6,250,000 Property, Plant and Equipment Inventories P3,680,000 250,000 800,000 200,000 P4,930,000 Trade Receivables Cash and cash equivalents Total Assets CAPITAL AND LIABILITIES Share Capital Retained Profit Bank loan Trade Payables Total Capital and Liabilities 2,500,000 1,223,000 1,000,000 207,000 P4,930,000 2,500,000 1,392,000 2,000,000 358,000 P6,250,000 Which is better in terms of profitability and liquidity? Justify your answer.
3. Curve and Big Daddy Blaise are both apparel retailers offering plus-sized clothes as part of the "Rise Above Body-Shaming" movement that started on 2016. The financial statements of Shannon's Curve and Big Daddy Blaise for year 2019 are as follows: Statement of Profit or Loss for the year 2019: Shannon's Curve P2,580,000 (200,000) 2,380,000 (865,000) (339,000) (250,000) 926,600 Big Daddy Blaise P2,000,000 (230,000) 1,770,000 (500,000) (256,000) (100,000) 914,000 Sales Cost of Goods Sold Gross Profit Administrative Expense Selling Expenses Finance Cost Net Profit Statement of Financial Position for the year 2019: Shannon's Curve Big Daddy Blaise ASSETS P5,300,000 250,000 400,000 300,000 P6,250,000 Property, Plant and Equipment Inventories P3,680,000 250,000 800,000 200,000 P4,930,000 Trade Receivables Cash and cash equivalents Total Assets CAPITAL AND LIABILITIES Share Capital Retained Profit Bank loan Trade Payables Total Capital and Liabilities 2,500,000 1,223,000 1,000,000 207,000 P4,930,000 2,500,000 1,392,000 2,000,000 358,000 P6,250,000 Which is better in terms of profitability and liquidity? Justify your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: Business Finance (Profitability & Liquidity)
The following requires computation and justification of your answers.
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