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6.6 Problem HYZEL Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2018 6,000,000 4,200,000 1,800,000 900,000 900,000 270,000 630,000 Sales Cost of sales Gross profit Operating expenses Income before taxes Income tax (30%) Net income Statement of Financial Position December 31, 2018 4,200,000 5,000,000 9,200,000 900,000 2,500,000 4,900,000 200,000 9,200,000 Current assets Non-current assets Total assets Current liabilities Non-current liabilities Ordinary shares Retained earnings Total liabilities and shareholders' equity Additional information: 1. Dividends paid out of P630,000 earnings in 2018 amount to P378,000. 2. Only current assets and current liabilities are directly related to sales. 3. The business expects a 30% increase in sales next year. 4. The business is expected to retain 40% of the earnings next year. Required: Compute the following: 1. Expected increase in current assets 2. Spontaneous increase in current liabilities 3. Projected statement of comprehensive income

6.6 Problem HYZEL Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2018 6,000,000 4,200,000 1,800,000 900,000 900,000 270,000 630,000 Sales Cost of sales Gross profit Operating expenses Income before taxes Income tax (30%) Net income Statement of Financial Position December 31, 2018 4,200,000 5,000,000 9,200,000 900,000 2,500,000 4,900,000 200,000 9,200,000 Current assets Non-current assets Total assets Current liabilities Non-current liabilities Ordinary shares Retained earnings Total liabilities and shareholders' equity Additional information: 1. Dividends paid out of P630,000 earnings in 2018 amount to P378,000. 2. Only current assets and current liabilities are directly related to sales. 3. The business expects a 30% increase in sales next year. 4. The business is expected to retain 40% of the earnings next year. Required: Compute the following: 1. Expected increase in current assets 2. Spontaneous increase in current liabilities 3. Projected statement of comprehensive income

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6.6 Problem HYZEL Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2018 6,000,000 4,200,000 1,800,000 900,000 900,000 270,000 630,000 Sales Cost of sales Gross profit Operating expenses Income before taxes Income tax (30%) Net income Statement of Financial Position December 31, 2018 4,200,000 5,000,000 2,200,000 900,000 2,500,000 4,900,000 200,000 9,200,000 Current assets Non-current assets Total assets Current liabilities Non-current liabilities Ordinary shares Retained earnings Total liabilities and shareholders' equity Additional information: me 1. Dividends paid out of P630,000 earnings in 2018 amount to P378,000. 2. Only current assets and current liabilities are directly related to sales. 3. The business expects a 30% increase in sales next year. 4. The business is expected to retain 40% of the earnings next year. Required: Compute the following: 1. Expected increase in current assets 2. Spontaneous increase in current liabilities 3. Projected statement of comprehensive income 4. Expected increase in retained earnings 5. Additional funds needed 6. Projected statement of financial position that shows separately the additional funds needed
Transcribed Image Text:6.6 Problem HYZEL Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2018 6,000,000 4,200,000 1,800,000 900,000 900,000 270,000 630,000 Sales Cost of sales Gross profit Operating expenses Income before taxes Income tax (30%) Net income Statement of Financial Position December 31, 2018 4,200,000 5,000,000 2,200,000 900,000 2,500,000 4,900,000 200,000 9,200,000 Current assets Non-current assets Total assets Current liabilities Non-current liabilities Ordinary shares Retained earnings Total liabilities and shareholders' equity Additional information: me 1. Dividends paid out of P630,000 earnings in 2018 amount to P378,000. 2. Only current assets and current liabilities are directly related to sales. 3. The business expects a 30% increase in sales next year. 4. The business is expected to retain 40% of the earnings next year. Required: Compute the following: 1. Expected increase in current assets 2. Spontaneous increase in current liabilities 3. Projected statement of comprehensive income 4. Expected increase in retained earnings 5. Additional funds needed 6. Projected statement of financial position that shows separately the additional funds needed
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