You are the Chief Finance Officer of Pandemic Restaurant. Management has suggested of a possibility expanding the business by offering new investment facilities to the community using existing funds. Another alternative offered is to release Phpl,000,000 to fund the possible business expansion. Upon discussing with the accountant, he provided you the following information. Evaluate the company if it is worth expanding using internal funds or to grab the one million pesos offer. Also make the necessary recommendation to top management. Here is the financial statements of Pandemic Restaurant as of December 31, 2019.
You are the Chief Finance Officer of Pandemic Restaurant. Management has suggested of a possibility expanding the business by offering new investment facilities to the community using existing funds. Another alternative offered is to release Phpl,000,000 to fund the possible business expansion. Upon discussing with the accountant, he provided you the following information. Evaluate the company if it is worth expanding using internal funds or to grab the one million pesos offer. Also make the necessary recommendation to top management. Here is the financial statements of Pandemic Restaurant as of December 31, 2019.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 80BPSB: Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial...
Related questions
Question
You are the Chief Finance Officer of Pandemic Restaurant. Management has suggested of a possibility expanding the business by offering new investment facilities to the community using existing funds. Another alternative offered is to release Phpl,000,000 to fund the possible business expansion. Upon discussing with the accountant, he provided you the following information. Evaluate the company if it is worth expanding using internal funds or to grab the one million pesos offer. Also make the necessary recommendation to top management.
Here is the financial statements of Pandemic Restaurant as of December 31, 2019.
![PANDEMIC RESTAURANT
STATEMENT OF CASH FLOWS
For the Year ended December 31, 2019
(Amounts in Philippine Peso)
31-Dec-2019
31-Dec-2018
CASH FLOWS FROM OPERATING ACTIVITIES
Depreciation
90,075.85
85,734.39
Provision of losses on AR
Breakage and Losses on property, plant & equipt
Spoilage, Breakage and Losses
Write-off of Property, Plant and Equipment
Breakage & losses on property, plant and equipment
Prior Period adjustments
Gain (Loss) on disposal of property and equipment
Decrease (Increase) in Assets
Loans and Receivables
508,510.78
(419,612.06)
Inventory
Suplies on Hand
Prepaid Expense
Increase (Decrease) in Liabilities
407,438.66
90,910.95
27,782.32
26,368.78
Accounts Payable
SSS/EC/Pag-ibig/Philhealth Premiums Payable
SSS/Pag-ibig loans Payable
Withholding Tax Payable
Staff Bond Payable
Accrued Expenses
Due to CETF (Apex)
Interest on share capital and patronage refund Payable
(41,577.17)
(2,416.82)
78,174.71
31,084.89
12.21
(20,195.57)
5,508.75
3,483.75
28,007.67
22,659.11
288,710.89
575,596.31
Net Cash provided by/(used for) operating activities
1,372,449.10
413,809.30
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (Increase) in
Property and Equipment
Other funds and deposits
(36,277.50)
(1,500,000.00)
(31,744.64)
Deposit on retunable container
Net cash used in investing activities
(1,536,277.50)
(31,744.64)
CASH FLOWS FROM FINANCING ACTITVITIES
Increase (Decrease) in
Share Capital
87,500.00
(144,400.00)
Donations/Grants
(199,243.04)
Undivided Profits
Statutory Funds
40,310.41
(65,091.69)
(71,432.63)
(209,491.69)
Net Cash provided by/(used for) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALEN
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
(235,261.03)
172,572.97
6,695,880.87
6,523,307.90
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOI
6,460,619.84
6,695,880.87
Cash Breakdown
Cash in Bank - BPI Demand Deposit
Cash in Bank - RCBC Demand Deposit
Cash in Bank - BPI Savings Deposit
Cash in Bank - BPI Time Deposit
Cash in Bank - RCBC Time Deposit
Change Fund
Petty Cash Fund
Revolving Fund
Total Cash and Cash Equivalent
1,002,000.00
2,318,645.90
1,329,870.97
697,897.87
1,010,152.81
2,510,738.81
2,430,677.37
847,074.76
34,300.00
836,917.22
34,300.00
1,962.50
1,962.50
50,000.00
50,000.00
6,460,619.84
6,695,880.87](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F114e2558-0d3e-46b7-93e7-0a23b7d295f7%2F5b4906f4-dd7b-4109-924c-49d25cc1f307%2Ffd551ko_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PANDEMIC RESTAURANT
STATEMENT OF CASH FLOWS
For the Year ended December 31, 2019
(Amounts in Philippine Peso)
31-Dec-2019
31-Dec-2018
CASH FLOWS FROM OPERATING ACTIVITIES
Depreciation
90,075.85
85,734.39
Provision of losses on AR
Breakage and Losses on property, plant & equipt
Spoilage, Breakage and Losses
Write-off of Property, Plant and Equipment
Breakage & losses on property, plant and equipment
Prior Period adjustments
Gain (Loss) on disposal of property and equipment
Decrease (Increase) in Assets
Loans and Receivables
508,510.78
(419,612.06)
Inventory
Suplies on Hand
Prepaid Expense
Increase (Decrease) in Liabilities
407,438.66
90,910.95
27,782.32
26,368.78
Accounts Payable
SSS/EC/Pag-ibig/Philhealth Premiums Payable
SSS/Pag-ibig loans Payable
Withholding Tax Payable
Staff Bond Payable
Accrued Expenses
Due to CETF (Apex)
Interest on share capital and patronage refund Payable
(41,577.17)
(2,416.82)
78,174.71
31,084.89
12.21
(20,195.57)
5,508.75
3,483.75
28,007.67
22,659.11
288,710.89
575,596.31
Net Cash provided by/(used for) operating activities
1,372,449.10
413,809.30
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (Increase) in
Property and Equipment
Other funds and deposits
(36,277.50)
(1,500,000.00)
(31,744.64)
Deposit on retunable container
Net cash used in investing activities
(1,536,277.50)
(31,744.64)
CASH FLOWS FROM FINANCING ACTITVITIES
Increase (Decrease) in
Share Capital
87,500.00
(144,400.00)
Donations/Grants
(199,243.04)
Undivided Profits
Statutory Funds
40,310.41
(65,091.69)
(71,432.63)
(209,491.69)
Net Cash provided by/(used for) financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALEN
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
(235,261.03)
172,572.97
6,695,880.87
6,523,307.90
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOI
6,460,619.84
6,695,880.87
Cash Breakdown
Cash in Bank - BPI Demand Deposit
Cash in Bank - RCBC Demand Deposit
Cash in Bank - BPI Savings Deposit
Cash in Bank - BPI Time Deposit
Cash in Bank - RCBC Time Deposit
Change Fund
Petty Cash Fund
Revolving Fund
Total Cash and Cash Equivalent
1,002,000.00
2,318,645.90
1,329,870.97
697,897.87
1,010,152.81
2,510,738.81
2,430,677.37
847,074.76
34,300.00
836,917.22
34,300.00
1,962.50
1,962.50
50,000.00
50,000.00
6,460,619.84
6,695,880.87
![2 Cashflow_Analysis_Drill.pdf - Adobe Reader
File Edit View Window Help
PANDEMIC RESTAURANT
STATEMENT OF FINANCIAL CONDITION
PANDEMIC RESTAURANT
December 31, 2019
STATEMENT OF OPERATIONS
(Amounts in Philippine Peso)
Note
For the Year ended December 31, 2019
ASSETS
31-Dec-2019
31-Dec-2018
(Amounts in Philippine Peso)
Current Assets
Cash and Cash Equivalent
Loans and receivables - net
6,460,619.84
568,603.68
6.695,880,87
1,077,114.46
Note
31-Dec-2019
31-Dec-2018
4
REVENUE
Gross Income from Operation
Income from Investment/deposit
13
5,882,965.88
5,449,169.32
(23,694.81)
55,669.28
Inventory
Supplies on Hand
Prepaid Expenses
Total Current Assets
599,483.97
1,006,922.63
53,780.91
14
41,527.27
25,998.59
Other Income
15
41.136.30
Total Revenue
5,965,629.45
5.481,143.79
7,654,706.08
8,833,698.87
Property and Equipment
Office fumiture, fixture
Store fumiture, fixture and equipment (SFFE)
EXPENSES
Salaries and Wages
Employee Benefits
SSS EC/Pag-ibig/Philhealth contributions
1,895,915.82
293,002.65
289,261.01
233,250.00
1,804,974.49
equipment (OFFE)
7
329,113.00
329,113.00
238.483.22
393,259.59
309,906.45
7
385.170.89
214,179.42
258,400.00
16
281,717.65
Kitchen/Canteen/Catering Equipt & Utensils (KCCEU)
Total
7
Officers' Honorarium and allowances
Advertising and Promotion
Professional Fees
Supplies Expense
Meeting and conferences
General assembly
Trainings and Seminars
Rental Expense
Power, Light and Water (utilities)
Travel and Transportation
Insurance expense
Repairs and Maintenance
Taxes, Fees and Charges
1,032,279.04
996,001.54
908,347.12
35,000.00
311.343.97
less Accumulated Depreciation
8,000.00
331,042.01
16,996.00
27,000.00
7
998,422.97
Total Property and Equipment - net
33,856.07
87,654.42
17
9,253.00
25,259.00
Other Assets
Investment in Bonds
1,500,000.00
3,450.00
1,155,000.00
431,003.08
16,279.00
1,596.40
10,721.56
13,011.00
1.155,000.00
370,985.68
16,222.00
1,596.40
3,040.00
Deposit on retunable container
3,450.00
Total Other Assets
1,503,450.00
3,450.00
TOTAL ASSETS
9,192,012.15
8,924,803.29
15,300.00
13.634.46
7,011.00
LIABILITIES AND MEMBERS' EQUITY
Communication
12.585.26
Curent Liabilities
Accounts Payable
SSS EC/Pag-ibig/Philhealth Premiums Payable
SS Pag-ibig loans Payable
Withholding Tax Payable
Staff Bond Payable
Accrued Expenses
Interest on share capital & patronage refund Payable
Representation
Employee Incentive
Bank Charges
Depreciation
Doubtful account expense
Provision for Probable Losses on AR
Write-off of Property and Equipment
Charges
Members benefit expenses
Legal Fees
Breakage and Losses on property, plant & equipt
Spoilage, Breakage and Losses
Prior period Adjustment
10,445.00
8
94,689.59
136,266.76
31,282.89
9
109,457.60
1,000.00
10
12.21
90,075.85
85,734.39
6,477.16
20,195.57
35,821.75
9,124.01
41.330.50
1,095,488.76
806,777.86
Bank
Due to CETF (Apex)
300,106.93
1,641,085.59
272,099.26
Total Current Liabilities
1,302,444.10
Members' Equity
Share Capital
Donations/Grants
Undivided net surplus
Statutory Funds:
Reserve Fund
11
1,575,400.00
1,487,900.00
199,243.04
Miscellaneous
2,196.00
703.00
Total Expenses
4,845,322.61
4,574,779.23
NET SURPLUS
1,120,306.84
906,364.56
5,276,650.06
307,449.83
2,098.55
339,328.11
5,084,557.93
285,163.54
53.826.33
511.668.36
Distributed as follows:
Reserve Fund
Cooperative Education and training fund (local)
Community Development Fund
Optional Fund
Total Statutory Funds
Total Members' equity
112,030.68
28,007.67
33,609,21
22.406.14
28,007,67
90,636.46
Cooperative Education and training fund (local)
Community Development Fund
Optional Fund
Cooperative Education and training fund (APEX)
Interest on share capital & patronage refund Payable
Total Statutory Funds
22.659.11
27.190.94
5.975,526.56
5.935,216.15
7.622.359.19
18,127.29
22.659.11
7,550,926.56
896.245.47
725,091.65
TOTAL LIABILITIES AND MEMBERS' EQUITY
9,192,012.15 8,924,803.29
1.120.306.84
906,364.56](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F114e2558-0d3e-46b7-93e7-0a23b7d295f7%2F5b4906f4-dd7b-4109-924c-49d25cc1f307%2F0tigezf_processed.png&w=3840&q=75)
Transcribed Image Text:2 Cashflow_Analysis_Drill.pdf - Adobe Reader
File Edit View Window Help
PANDEMIC RESTAURANT
STATEMENT OF FINANCIAL CONDITION
PANDEMIC RESTAURANT
December 31, 2019
STATEMENT OF OPERATIONS
(Amounts in Philippine Peso)
Note
For the Year ended December 31, 2019
ASSETS
31-Dec-2019
31-Dec-2018
(Amounts in Philippine Peso)
Current Assets
Cash and Cash Equivalent
Loans and receivables - net
6,460,619.84
568,603.68
6.695,880,87
1,077,114.46
Note
31-Dec-2019
31-Dec-2018
4
REVENUE
Gross Income from Operation
Income from Investment/deposit
13
5,882,965.88
5,449,169.32
(23,694.81)
55,669.28
Inventory
Supplies on Hand
Prepaid Expenses
Total Current Assets
599,483.97
1,006,922.63
53,780.91
14
41,527.27
25,998.59
Other Income
15
41.136.30
Total Revenue
5,965,629.45
5.481,143.79
7,654,706.08
8,833,698.87
Property and Equipment
Office fumiture, fixture
Store fumiture, fixture and equipment (SFFE)
EXPENSES
Salaries and Wages
Employee Benefits
SSS EC/Pag-ibig/Philhealth contributions
1,895,915.82
293,002.65
289,261.01
233,250.00
1,804,974.49
equipment (OFFE)
7
329,113.00
329,113.00
238.483.22
393,259.59
309,906.45
7
385.170.89
214,179.42
258,400.00
16
281,717.65
Kitchen/Canteen/Catering Equipt & Utensils (KCCEU)
Total
7
Officers' Honorarium and allowances
Advertising and Promotion
Professional Fees
Supplies Expense
Meeting and conferences
General assembly
Trainings and Seminars
Rental Expense
Power, Light and Water (utilities)
Travel and Transportation
Insurance expense
Repairs and Maintenance
Taxes, Fees and Charges
1,032,279.04
996,001.54
908,347.12
35,000.00
311.343.97
less Accumulated Depreciation
8,000.00
331,042.01
16,996.00
27,000.00
7
998,422.97
Total Property and Equipment - net
33,856.07
87,654.42
17
9,253.00
25,259.00
Other Assets
Investment in Bonds
1,500,000.00
3,450.00
1,155,000.00
431,003.08
16,279.00
1,596.40
10,721.56
13,011.00
1.155,000.00
370,985.68
16,222.00
1,596.40
3,040.00
Deposit on retunable container
3,450.00
Total Other Assets
1,503,450.00
3,450.00
TOTAL ASSETS
9,192,012.15
8,924,803.29
15,300.00
13.634.46
7,011.00
LIABILITIES AND MEMBERS' EQUITY
Communication
12.585.26
Curent Liabilities
Accounts Payable
SSS EC/Pag-ibig/Philhealth Premiums Payable
SS Pag-ibig loans Payable
Withholding Tax Payable
Staff Bond Payable
Accrued Expenses
Interest on share capital & patronage refund Payable
Representation
Employee Incentive
Bank Charges
Depreciation
Doubtful account expense
Provision for Probable Losses on AR
Write-off of Property and Equipment
Charges
Members benefit expenses
Legal Fees
Breakage and Losses on property, plant & equipt
Spoilage, Breakage and Losses
Prior period Adjustment
10,445.00
8
94,689.59
136,266.76
31,282.89
9
109,457.60
1,000.00
10
12.21
90,075.85
85,734.39
6,477.16
20,195.57
35,821.75
9,124.01
41.330.50
1,095,488.76
806,777.86
Bank
Due to CETF (Apex)
300,106.93
1,641,085.59
272,099.26
Total Current Liabilities
1,302,444.10
Members' Equity
Share Capital
Donations/Grants
Undivided net surplus
Statutory Funds:
Reserve Fund
11
1,575,400.00
1,487,900.00
199,243.04
Miscellaneous
2,196.00
703.00
Total Expenses
4,845,322.61
4,574,779.23
NET SURPLUS
1,120,306.84
906,364.56
5,276,650.06
307,449.83
2,098.55
339,328.11
5,084,557.93
285,163.54
53.826.33
511.668.36
Distributed as follows:
Reserve Fund
Cooperative Education and training fund (local)
Community Development Fund
Optional Fund
Total Statutory Funds
Total Members' equity
112,030.68
28,007.67
33,609,21
22.406.14
28,007,67
90,636.46
Cooperative Education and training fund (local)
Community Development Fund
Optional Fund
Cooperative Education and training fund (APEX)
Interest on share capital & patronage refund Payable
Total Statutory Funds
22.659.11
27.190.94
5.975,526.56
5.935,216.15
7.622.359.19
18,127.29
22.659.11
7,550,926.56
896.245.47
725,091.65
TOTAL LIABILITIES AND MEMBERS' EQUITY
9,192,012.15 8,924,803.29
1.120.306.84
906,364.56
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning