BUSINESS FINANCE QUIZ

Statements of Financial Position

NAME:_______________________________ DATE:______________
2016 2015
Make an analysis for the following situations. Show your solutions. Assets
Current Assets
1. In 2016, there was a crisis happening affecting the food industry globally.
Cash 766 805 883 416
Because of this, the investors are worried if the Bente Silog Corporation can Trade Receivables 1 454 426 1 396 639
generate income from its main operations. Inventories 3 293 030 3 351 933
2. The BSC wants to expand its business in Subic Bay Freeport Zone. The Other Current Assets 735 608 998 763
Chief Operations Officer is very doubtful about that. He wants to know if the 6 249 869 6 630 751
Noncurrent Assets
company can generate any income from its assets.
Property, Plant, and Equipment, Net 9 350 000 9 500 000
3. Ms. Honey Grace Lorenzo wants to invest her Php 2,500,000.00 that she Other Noncurrent Assets 876 235 827 490
won’t need for a long time. Different financial institutions went to her to offer 10 226 235 10 327 490
their investment products and someone told her to invest in Bente Silog Total Assets 16 476 104 16 958 241
Corporation. Help her in deciding with the following rates that she can invest
Liability and Equity
to: Current Liabilities
 Sun Financial – 8% Trade Payables 3 298 699 2 874 911
 Philippine Stock Exchange – 19% Income Taxes Payable 149 441 115 330
 Metrobank – 23% Current Portion of Long Term Debt 2 000 000 2 000 000
Other Current Liabilities 30 688 37 890
4. To expand the business, Bente Silog Corporation wants to know if it can 5 478 828 5 028 131
finance its own business and if there is a need to borrow money for funding. Noncurrent Liabilities
Long-term Debt, Net of Current Portion 1 000 000 3 000 000
Statement of Profit or Loss Total Liabilities 6 478 828 8 028 131
Stockholder’s Equity
Capital Stock 8 000 000 8 000 000
2016 2015 Retained Earnings 1 997 276 930 110
Net Sales 38 340 257 35 336 643 Total Stockholder’s Equity 9 997 276 8 930 110
Cost of Sales 31 439 011 29 329 413 Total Liabilities and Stockholder’s Equity 16 476 104 16 958 241
Gross Profit 6 901 246 6 007 229
Operating Expenses 4 926 723 4 505 422
Operating Income 1 974 523 1 501 807
Interest Expense 450 000 300 000
Income before Taxes 1 524 523 1 201 807
Taxes 457 357 360 542
Net Income 1 067 166 841 265