INCOME STATEMENT JUST STUFF, INC. FOR THE YEARS ENDED DEC. 31 2019 & 2020 2020 P2200.000 2019 Sales Revenue Less: Cost of Goods Sold Gross Profits Less Operating Expenses Operating Profits Less: Interest Expense Net Profits Before Taxes Less: Tases (30%) Net Profits After Taxes P2250.000 L800.000 P450,000 300.000 280.000 P120,000 15.000 P105,000 31.500 P73,500 P150,000 15.000 P135.000 40.500 P94.500 BALANCE SHEET JUST STUFF, INc. AS OF DEC. 31 2019A 2020 2019 2020 Assets P95.000 237,000 241.000 PS75.000 P100.000 Cash Accounts recelvable 202.000 Inventories 253.000 Total current assets Gross fixed assets Less Accumulated depreciation Net fied assets PS05.000 s00.000 500.000 75.000 25.000 P425.000 P425.000 PL000.000 Total assets P930,000 Labilities and stockholders' equity Current labilities Accounts payable Notes payable Accruals P9.000 169.000 B7.000 P345.000 150.000 P495.000 $109.000 154.000 103.500 $366.500 Total current liabilities Long term debe Total liabilities Stockholders equity Common stock, at PS par Retained earnings Total stockholders equity Total labilities and stockholders equity 150.000 PS16500 285.000 220.000 E505.000 300.000 113500 PA500 PL.000.000 P930.000 ddtional information . In 2020, dividends of P180.000 were declared. • Market value of the share were P12 and P10 for the years 2019 and 2020, respectively • The firm operates on 360 days per year MOTE
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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