STATEMENT OF FINANCIAL POSITIO

2018 2019
ASSETS Dr. Cr. Dr. Cr.
Cash 45139.88 81214.18
Materials Inventory 220.00 356.00
3
Office Supplies 365.00 365.00
4
Other Supplies 1375.00 1375.00
Property, Plant and Equipment (Net) 5 40966.33 36966.33

LIABILITIES AND PARTNER'S EQUITY

Accounts Payable 2000.00 500.00
Salaries Payable 3000.00 1500.00
Anzano, Capital 31355.40 55092.17
Audal, Capital 25355.40 24592.17
Molina, Capital 26355.40 38592.17
PhP88,066.21 PhP88,066.21 PhP120,276.51 PhP120,276.51
ENT OF FINANCIAL POSITION

2020 2021 2022

Dr. Cr. Dr. Cr. Dr. Cr.
118061.59 195850.44 199829.57
181.00 152.00 475.00
365.00 365.00 365.00
1375.00 1375.00 1375.00
32966.33 28966.33 24966.33

1500.00 500.00 500.00

2250.00 750.00 3000.00
53332.97 74086.26 86770.30
37832.97 62586.26 50270.30
58032.97 88786.26 86470.30
PhP152,948.92 PhP152,948.92 PhP226,708.77 PhP226,708.77 PhP227,010.90 PhP227,010.90
 STATEMENT OF FINANCIAL PERFORMANC

2018 2019
Sales 21600.00 147420.00
Less: Cost of Sales/Service 6 11289.12 73255.10
Gross Profit 10310.88 74164.90
Less:
Utilities Expense 7 1900.00 11742.00
Depreciation Expense 666.67 4000.00
Permits and Licenses 8 1225.00 1225.00
Office Supplies Expense 9 0.00 65.00
Salaries Expense 1500.00 9000.00
Other Expenses 10 305.00 5596.67 1000.00 27032.00
Net Profit before Tax 4714.21 47132.90
Percentage Tax (3%) 648.00 4422.60
Net Profit After Tax PhP4,066.21 PhP42,710.30

2018 2019
Production 3600 22680
Unit Cost 3.14 3.23
EMENT OF FINANCIAL PERFORMANCE

2020 2021 2022

166698.00 187535.25 210039.48
79225.39 85682.26 92665.36
87472.61 101852.99 117374.12

12094.26 12457.09 12830.80

4000.00 4000.00 4000.00
1225.00 1225.00 1225.00
65.00 65.00 65.00
9000.00 9000.00 9000.00
1365.00 27749.26 1220.00 27967.09 900.00 28020.80
59723.35 73885.90 89353.32
5000.94 5626.06 6301.18
PhP54,722.41 PhP68,259.85 PhP83,052.13

2020 2021 2022

23814 25005 26255
3.33 3.43 3.53
 STATEMENT OF PARTNER'S EQ

2018 2019
Anzano, Capital
Beginning Balance 25000.00 31355.40
Share in Income (Loss) 1355.40 14236.77
Additional investment (Withdrawals) 5000.00 31355.40 9500.00
Audal, Capital
Beginning Balance 25000.00 25355.40
Share in Income (Loss) 1355.40 14236.77
Additional investment (Withdrawals) (1000.00) 25355.40 (15000.00)
Molina, Capital
Beginning Balance 25000.00 26355.40
Share in Income (Loss) 1355.40 14236.77
Additional investment (Withdrawals) 0.00 26355.40 (2000.00)
TOTAL PARTNER'S EQUITY PhP83,066.21
STATEMENT OF PARTNER'S EQUITY

2019 2020 2021 2022

55092.17 53332.97 74086.26

18240.80 22753.28 27684.04
55092.17 (20000.00) 53332.97 (2000.00) 74086.26 (15000.00)

24592.17 37832.97 62586.26

18240.80 22753.28 27684.04
24592.17 (5000.00) 37832.97 2000.00 62586.26 (40000.00)

38592.17 58032.97 88786.26

18240.80 22753.28 27684.04
38592.17 1200.00 58032.97 8000.00 88786.26 (30000.00)
PhP118,276.51 PhP149,198.92 PhP225,458.77
2022

86770.30

50270.30

86470.30
PhP223,510.90
 STATEMENT OF CASH FLOWS

2018 2019
Net Income 4066.21 42710.30
Depreciation 666.67 4000.00
Decreas (Increase) in Materials Inventory (220.00) (136.00)
Decrease (Increase) in Office Supplies (365.00) 0.00
Decrease (Increase) in Other Supplies (1375.00) 0.00
Increase (Decrease) in Salaries Payable 3000.00 (1500.00)
Increase (Decrease) in Accounts Payable 2000.00 (1500.00)
Cash inflow (outflow) as a result of operations 7772.88 43574.30

Capital Expenditures (41633.00) 0.00

Cash inflow (outflow) from Investing Activities (41633.00) 0.00

Partners additional investments (withdrawals) 4000.00 (7500.00)

Cash inflow (outflow) from Financing Activities 4000.00 (7500.00)

Net cash increase (decrease) for the period (29860.12) 36074.30

Beginning cash balance 75000.00 45139.88
ENDING CASH BALANCES PhP45,139.88 PhP81,214.18
WS

2020 2021 2022

54722.41 68259.85 83052.13
4000.00 4000.00 4000.00
175.00 29.00 (323.00)
0.00 0.00 0.00
0.00 0.00 0.00
750.00 (1500.00) 2250.00
1000.00 (1000.00) 0.00
60647.41 69788.85 88979.13

0.00 0.00 0.00

0.00 0.00 0.00

(23800.00) 8000.00 (85000.00)

(23800.00) 8000.00 (85000.00)

36847.41 77788.85 3979.13

81214.18 118061.59 195850.44
PhP118,061.59 PhP195,850.44 PhP199,829.57
 NOTES TO FINANCIAL STATEMENTS

AAM is a partnership with the main business of making and selling Spicy Malunggay Cookies.

NOTE 1

The financial statements have been prepared in accordance with the significant accounting policies disclosed below which th
have determined are appropriate to meet the users need. Such accounting policies are consistent with the previous period un
otherwise.

NOTE 2

These financial statements have been prepared on an accrual and going-concern basis and the accounting policies
applied consistently throughout the period.

Expenses
Expenses are recognized as goods are received and services delivered unless otherwise stated.

Income
Income is recognized when earned regardless of when the payment is received.

Inventories
Inventories are carried at the lower of cost and selling price less to cost to complete and sell.

Accounts Payable
These are obligations under normal credit terms and do not bear interest.

2018 2019 2020

NOTE 3 Ballpen 15.00 15.00 15.00
Supplies

300.00 300.00 300.00

Office

Calculator
Record Book 50.00 50.00 50.00
TOTAL PhP365.00 PhP365.00 PhP365.00

Office Supplies are replenished as needed.

NOTE 4 2018 2019 2020

Broom 120 120 120
Garbage Bag 115.00 115.00 115.00
Dust Pan 50.00 50.00 50.00
Garbage Bins 100.00 100.00 100.00
Other Supplies

Dishwashing Liquid 80.00 80.00 80.00

Sponge 20.00 20.00 20.00
Gloves 300.00 300.00 300.00
 Other Supplies
Mop 200.00 200.00 200.00
Apron 300.00 300.00 300.00
Pot Holder 15.00 15.00 15.00
Side Towel 75.00 75.00 75.00
TOTAL PhP1,375.00 PhP1,375.00 PhP1,375.00

Other supplies are replenished as needed.

NOTE 5 2018
Property, Plant and Equipment 2019 2020
Equipment Cost 30000.00 30000.00 30000.00
Less: Acc.Dep. (500.00) (3500.00) (6500.00)
Oven
Deck
Gas

CARRYING AMOUN PHP 29,500.00 PHP 26,500.00 PHP 23,500.00

Property, Plant and Equipment 2018 2019 2020

Equipment Cost 1000.00 1000.00 1000.00
Less: Acc.Dep. (16.67) (116.67) (216.67)
Tank
LPG

CARRYING AMOUN PHP 983.33 PHP 883.33 PHP 783.33

Kitchen Equiments use Straight-line method of depreciation with the useful life of 10 years.

2018 2019 2020

Spoon 30.00 30.00 30.00
Fork 30.00 30.00 30.00
Kitchen Tools and Utensils

Measuring Cup 150.00 150.00 150.00

Measuring Spoon 98.00 98.00 98.00
Mixing Bowl 320.00 320.00 320.00
Plate 135.00 135.00 135.00
Cookie Sheet 325.00 325.00 325.00
Wire Whisk 110.00 110.00 110.00
Chopping Board 180.00 180.00 180.00
Weighting Scale 240.00 240.00 240.00
Knife 15.00 15.00 15.00
TOTAL PHP 1,633.00 PHP 1,633.00 PHP 1,633.00

Kitchen Tools and Utensils use inventory method of depreciation.

Weighting scale is is included in the kitchen tools because inventory methodof depreciation is most ideal because o
minimal amount.
Furnitures and Fixtures

2018 2019 2020

Working Table 6000.00 6000.00 6000.00
Chairs 1000.00 1000.00 1000.00
Kitchen Cabinet 2000.00 2000.00 2000.00
Cost 9000.00 9000.00 9000.00
Less Accumulated D (150.00) (1050.00) (1950.00)
 Furnitures and
CARRYING AMOUN PHP 8,850.00 PHP 7,950.00 PHP 7,050.00

Furnitures and Fixtures uses straighline method in recording depreciation. Its' useful life is 10 years.

Note 6 2018 2019 2020

Malunggay 10.00 10.30 10.61
Margarine 19.00 19.57 20.16
Sugar 16.00 16.48 16.97
Flour 34.00 35.02 36.07
Baking Soda 0.30 0.31 0.32
Eggs 6.00 6.18 6.37
40.00 41.20 42.44
Cost of Goods Sold

Pili Nuts
Salt 0.60 0.62 0.64
Chilli 0.08 0.08 0.08
Vanilla 0.21 0.22 0.22
Chocolate 34.00 35.02 36.07
Total Cost 160.19 165.00 169.95
÷Yield per Recipe 75 75 75
Unit Cost 2.14 2.20 2.27
Packaging Cost 1.00 1.03 1.06
Total Unit Cost 3.14 3.23 3.33
x # of Items Sold 3600 22680 23814
COST OF GOODS SO PHP 11,289.12 PHP 73,255.10 PHP 79,225.39

NOTE 7 2018 2019 2020

Electricity 600.00 3708.00 3819.24
Expense
Utilities

Water 500.00 3090.00 3182.70

LPG (800/11kg) 800.00 4944.00 5092.32
TOTAL PHP 1,900.00 PHP 11,742.00 PHP 12,094.26

NOTE 8 2018 2019 2020

BIR 550.00 550.00 550.00
Sanitary Permit 64.00 64.00 64.00
Permits and
Licenses

Mayor's Permit 382.00 382.00 382.00

Fire Inspection Fee 129.00 129.00 129.00
Business Permit 100.00 100.00 100.00
TOTAL PHP 1,225.00 PHP 1,225.00 PHP 1,225.00

NOTE 9 2018 2019 2020

Supplies
Expense
Office

Ballpen 0.00 15.00 15.00

Calculator 0.00 0.00 0.00
Record Book 0.00 50.00 50.00
TOTAL PHP 0.00 PHP 65.00 PHP 65.00
Office Supply Expenses are recorded upon reimbursement.

2018 2019 2020

Broom 0 120.00 0.00
Garbage Bag 115.00 115.00 115.00
Dust Pan 0.00 0.00 50.00
Garbage Bins 0.00 0.00 100.00
Other Expenses

Dishwashing Liquid 80.00 480.00 480.00

Sponge 20.00 120.00 120.00
Gloves 0.00 0.00 300.00
Mop 0.00 0.00 0.00
Apron 0.00 0.00 35.00
Pot Holder 15.00 15.00 15.00
Side Towel 75.00 150.00 150.00
TOTAL PHP 305.00 PHP 1,000.00 PHP 1,365.00

Other Expenses are recorded upon reimbursement.

g Spicy Malunggay Cookies.

ting policies disclosed below which the partners

consistent with the previous period unless stated

cern basis and the accounting policies have been

period.

elivered unless otherwise stated.

n the payment is received.

ess to cost to complete and sell.

nd do not bear interest.

2021 2022
15.00 15.00
300.00 300.00
50.00 50.00
PhP365.00 PhP365.00

2021 2022
120 120
115.00 115.00
50.00 50.00
100.00 100.00
80.00 80.00
20.00 20.00
300.00 300.00
 200.00 200.00
300.00 300.00
15.00 15.00
75.00 75.00
PhP1,375.00 PhP1,375.00

2021 2022
30000.00 30000.00
(9500.00) (12500.00)
PHP 20,500.00 PHP 17,500.00

2021 2022
1000.00 1000.00
(316.67) (416.67)
PHP 683.33 PHP 583.33

fe of 10 years.

2021 2022
30.00 30.00
30.00 30.00
150.00 150.00
98.00 98.00
320.00 320.00
135.00 135.00
325.00 325.00
110.00 110.00
180.00 180.00
240.00 240.00
15.00 15.00
PHP 1,633.00 PHP 1,633.00

of depreciation is most ideal because of its

2021 2022
6000.00 6000.00
1000.00 1000.00
2000.00 2000.00
9000.00 9000.00
(2850.00) (3750.00)
 PHP 6,150.00 PHP 5,250.00

' useful life is 10 years.

2021 2022
10.93 11.26
20.76 21.38
17.48 18.01
37.15 38.27
0.33 0.34
6.56 6.75
43.71 45.02
0.66 0.68
0.09 0.09
0.23 0.24
37.15 38.27
175.04 180.30
75 75
2.33 2.40
1.09 1.13
3.43 3.53
25005 26255
PHP 85,682.26 PHP 92,665.36

2021 2022
3933.82 4051.83
3278.18 3376.53
5245.09 5402.44
PHP 12,457.09 PHP 12,830.80

2021 2022
550.00 550.00
64.00 64.00
382.00 382.00
129.00 129.00
100.00 100.00
PHP 1,225.00 PHP 1,225.00

2021 2022
15.00 15.00
0.00 0.00
50.00 50.00
PHP 65.00 PHP 65.00
 2021 2022
120.00 0.00
115.00 115.00
0.00 0.00
0.00 0.00
480.00 480.00
120.00 120.00
0.00 0.00
200.00 0.00
0.00 0.00
35.00 35.00
150.00 150.00
PHP 1,220.00 PHP 900.00
 Return on investment* = Net Profit
Total Assets

2018 2019 2020

Return on Investment = 4.62% 35.51% 35.78%

*ROI is a profitability measure that evaluates the performance of a business by dividing net profit by net worth .

Year Cash Flow Cumulative Cash Flow

0 (75,000.00) (75,000.00)
1** 7,772.88 (67,227.12)
2 43,574.30 (23,652.82)
3 60,647.41 0.00
4 69,788.85
5 88,979.13
Payback Period***=

**Year 1 is good for 2 months only, November and December.

***Payback period is the time in which the initial cash outflow of an investment is expected to be recove

It would take approximately 1 1/2 years to recover the initial investment of the partners thru the busin

YEAR 1 YEAR 2 YEAR 3 YEAR 4

Breakeven Point = Fixed Cost Fixed Cost Fixed Cost Fixed Cost
Contribution Margin Contribution Margin Contribution Margin Contribution Margin
= ₱ 5,596.67 ₱ 27,032.00 ₱ 27,749.26 ₱ 27,967.09
₱ 2.95 ₱ 2.27 ₱ 2.67 ₱ 3.07
= 1,897.18 11,908.07 10,380.70 9,099.86

Breakeven Sales = Breakeven Point Breakeven Point Breakeven Point Breakeven Point
x Selling Price x Selling Price x Selling Price x Selling Price
= 1898.00 7984.00 7260.00 6570.00
x P5.00 x P5.50 x P6.00 x P6.50
= ₱ 9,490.00 ₱ 43,912.00 ₱ 43,560.00 ₱ 42,705.00
 2021 2022
30.11% 36.59%

fit by net worth .

ulative Cash Flow Period

(75,000.00)
(67,227.12) 0.17
(23,652.82) 1
0.00 0.31

1.48

ment is expected to be recovered from the cash inflows generated by the investment

of the partners thru the business operations.

YEAR 4 YEAR 5

Fixed Cost Fixed Cost

Contribution Margin Contribution Margin
₱ 27,967.09 ₱ 28,020.80
₱ 3.07 ₱ 3.47
9,099.86 8,073.87

Breakeven Point Breakeven Point

x Selling Price x Selling Price
6570.00 5975.00
x P6.50 x P7.00
₱ 42,705.00 ₱ 41,825.00