(Profitability Ratio)What is the Return on Asset Ratio in 2019? CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONDecember 31Note20202019ASSETSCurrent AssetsCash and cash equivalentsP350,824,146P853,266,354Trade and other receivables104,404,73383,566,374Due from related parties15114,745,318139,903,01435,011,152110,171,60237,934,520778,249,167Merchandise inventories49,907,654Deposits and advance rentalsOther current assets102,516,21813,685,549238Total Current Assets1,217,687,467Noncurrent AssetsUnamortized input value-added tax (VAT)Investment propertyProperty and equipmentRight-of-use (ROU) assets1,791,459126,875,050237,782,743982,788222,786,889115,194,610102380,874,88035,086,878213,603,42269,777,537Advances to contractors10Intangible assets11214,385,788Net deferred tax assets2425,375,831Total Noncurrent Assets765,791,969578,725,906P1,544,041,136P1,796,413,373LIABILITIES AND EQUITYCurrent LiabilitiesTrade and other payablesCurrent portion of:Notes payableMortgage payable12P55,499,779P136,017,618138,922,6782,695,00521,101,79313115,834,240142,321,815Lease liabilities2327,980,841Due to related partiesIncome tax payable15663,82110,079,093228,298,34826,732,814Total Current Liabilities309,551,149December 31Note20202019Noncurrent LiabilitiesNoncurrent portion of:Notes payableMortgage payableLease liabilities13R-P75,269,897141,204,44668,119,5118,168,92677,492,883305,791,2312,348,8452392,241,490Retirement benefits liability165,407,430Total Noncurrent Liabilities175,267,662Total Liabilities484,818,811EquityCapital stockAdditional paid-in capitalRetained earningsOther equity reservesOther comprehensive loss17213,368,000777,837,044213,368,00017777,837,044196,706,537266,111,391451,252,77955,192,582(914,455)1,238,249,90516(914,455)Total Equity1,311,594,562P1,544,041,136 P1,796,413,373 Years Ended December 31Note202020192018REVENUE18P891,847,222 P1,945,184,563 P1,579,205,736DIRECT COSTS19(356,478,659) (814,396,877) (665,367,430)GROSS PROFIT535,368,563 1,130,787,686913,838,306SELLING AND DISTRIBUTION EXPENSES20(493,018,940)(772,051,259) (635,395,313)GENERAL AND ADMINISTRATIVE EXPENSES21(121,155,301)(182,220,088)(131,451,739)INTEREST EXPENSE13(20,658,602)(38,664,963)(16,065,157)OTHER INCOME – Net2226,788,9207,890,9942,556,365GAIN FROM BARGAIN PURCHASE46,436,907INCOME (LOSS) BEFORE INCOME TAX(72,675,360)145,742,370139,919,369PROVISION FOR (BENEFIT FROM) INCOME TAX24Current19,794,400(44,401,706)44,884,66443,339,450(20,669,486)24,215,178Deferred(3,723,588)(24,607,306)39,615,862NET INCOME (LOSS)(48,068,054)121,527,192100,303,507OTHER COMPREHENSIVE LOSSItem not to be reclassified to profit or lossRemeasurement loss on retirement benefitsliability (net of deferred income tax)16(868,167)TOTAL COMPREHENSIVE INCOME (LOSS)ATTRIBUTABLE TO THE PARENT COMPANY(248,068,054) P120,659,025P100,303,507Basic and Diluted Earnings (Loss) per Share25(P0.0225)PO.0739PO.0627See accompanying Notes to Consolidated Financial Statements.: RevenueThis account consists of:Note202020192018Net salesP872,989,41113,204,2755,653,536P1,904,664,106P1,533,709,139Franchise fees2332,956,17136,055,210Rental income237,564,2869,441,387P891,847,222 P1,945,184,563P1,579,205,736The Group recognizes revenue from sales of goods and services upon delivery to customers or at apoint in time when the Group has no more obligations that could affect the acceptance of goods bythe customers.Details of the Group's revenue based on geographical markets are as follows:Note202020192018Sale of goods:LuzonP663,801,125163,309,75245,878,534P1,534,613,722 P1,267,576,409273,436,99296,613,392Visayas189,588,562Mindanao76,544,168872,989,4111,904,664,1061,533,709,139Franchise fees2332,956,171P1,937,620,277 P1,569,764,34913,204,27536,055,210P886,193,686. Direct CostsThis account consists of:Note202020192018Direct materials used72305,734,523P726,901,305P590,119,121Salaries, wages and otheremployee benefitsDepreciation and amortization30,967,80662,214,29554,426,2421,793,4061,703,5801015,296,27017,449,4822,362,7162,117,344Taxes and licenses1,834,302Utilities5,997,4935,554,421Rental2311,770,6602356,478,659P814,396,877P665,367,430Salaries, wages and other employee benefits pertain to outside services and salaries and wages ofpersonnel performing tasks directly related to the production of merchandise inventories.

Return on assets = net income/average total assets Net income =145742370 Average total assets…

Current Assets Cash and cash equivalents P350,824,146 P853,266,354 Trade and other receivables 104,404,733 83,566,374 Due from related parties 15 139,903,014 114,745,318 Merchandise inventories 7 35,011,152 110,171,602 37,934,520 778,249,167 49,907,654 Deposits and advance rentals Other current assets 23 102,516,218 8 13,685,549 Total Current Assets 1,217,687,467 Noncurrent Assets Unamortized input value-added tax (VAT) 982,788 1,791,459 126,875,050 Investment property 9 Property and equipment Right-of-use (ROU) assets 10 237,782,743 222,786,889 23 80,874,880 115,194,610 Advances to contractors 35,086,878 213,603,422 69,777,537 765,791,969 10 Intangible assets Net deferred tax assets 11 214,385,788 24 25,375,831 Total Noncurrent Assets 578,725,906 P1,544,041,136 P1,796,413,373 LIABILITIES AND EQUITY Current Liabilities Trade and other payables 12 P55,499,779 P136,017,618 Current portion of: Notes payable Mortgage payable Lease liabilities 13 138,922,678 115,834,240 2,695,005 21,101,793 2,321,815 27,980,841 14 23 Due to related parties Income tax payable 15 663,821 10,079,093 26,732,814 Total Current Liabilities 228,298,348 309,551,149 December 31 Note 2020 2019 Noncurrent Liabilities Noncurrent portion of: Notes payable Mortgage payable 13 R- P75,269,897 14 1,204,446 68,119,511 2,348,845 Lease liabilities 23 92,241,49C Retirement benefits liability 16 8,168,926 5,407,430 Total Noncurrent Liabilities 77,492,883 175,267,662

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q