Solve the following (Please refer to the picture) 6.6 ProblemHYZEL Manufacturing Company presents the following:Statement of Comprehensive IncomeDecember 31, 20186,000,0004,200,0001,800,000900,000900,000270,000630,000SalesCost of salesGross profitOperating expensesIncome before taxesIncome tax (30%)Net incomeStatement of Financial PositionDecember 31, 20184,200,0005,000,0002,200,000900,0002,500,0004,900,000200,0009,200,000Current assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesOrdinary sharesRetained earningsTotal liabilities and shareholders' equityAdditional information:me1. 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 assets2. Spontaneous increase in current liabilities3. Projected statement of comprehensive income4. Expected increase in retained earnings5. Additional funds needed6. Projected statement of financial position that shows separately the additional fundsneeded

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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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 74E

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