PARAÑAQUE NATIONAL HIGH SCHOOL-BACLARAN

SENIOR HIGH SCHOOL

S.Y. 2019-2020

PROJECTED FINANCIAL STATEMENT

JSC Foods Corporation

Statements of Profit or Loss
For the Years Ending December 31, 2010-2014
2014 2013 2012 2011 2010
Net Sales P52 501 085 P47 345 223 P42 174 283 P38 340 257 P35 336 643
Cost of Sales 41 954 730 37 988 628 33 980 174 31 439 011 29 329 413
Gross Profit 10 546 355 9 356 595 8 194 109 6 901 246 6 007 229
Operating Expenses 6 497 659 6 196 804 5 393 621 4 926 723 4 505 422
Operating Income 4 048 696 3 159 791 2 800 488 1 974 523 1 501 807
Interest Expense 250 000 250 000 250 000 450 000 300 000
Income before taxes 3 798 696 2 909 791 2 550 488 1 524 523 1 201 807
Taxes 1 139 609 872 937 765 146 457 357 360 542
Net Income P2 659 087 P2 036 854 P1 785 342 P1 067 166 P841 265

JSC Foods Corporation

Statements of Financial Position
For the Years Ending December 31, 2010-2014

2014 2013 2012 2011 2010

Assets
Currents Assets
Cash 1 062 527 996 904 777 415 766 805 883 416
Trade Receivables 2 300 500 1 921 799 1 722 513 1 454 426 1 396 639
Inventories 4 849 304 4 499 998 3 797 668 3 293 030 3 351 933
Other Current Assets 1 050 000 983 746 984 786 735 608 998 763
9 262 331 8 402 447 7 282 382 6 249 869 6 630 751
Noncurrent Assets
Property, Plant and
Equipment Net 12 200 000 11 300 000 9 050 000 9 350 000 9 500 000
Other Noncurrent Assets 835 689 925 681 896 842 876 235 827 490
13 035 689 12 225 681 9 946 842 10 226 235 10 327 490
Total Assets 22 298 020 20 628 128 17 229 224 16 476 104 16 958 241

Liabilities and Equity

Current Liabilities
Trade Payables 5 050 810 4 746 252 4 137 815 3 298 699 2 874 911
Income Taxes Payable 433 051 283 705 267 801 149 441 115 330
Current Portion of Long-term
Debt 2 250 000 2 500 000 1 000 000 2 000 000 2 000 000
Other Current Liabilities 85 600 28 700 40 990 30 688 37 890
7 819 461 7 558 657 5 446 606 5 478 828 5 028 131
Noncurrent Liabilities
Long-term Debt, Net of
Current Portion 2 000 000 1 250 000 1 000 000 3 000 000
Total Liabilities 9 819 461 8 808 657 5 446 606 6 478 828 8 028 131
Stockholders’ Equity
Capital Stock 8 000 000 8 000 000 8 000 000 8 000 000 8 000 000
Retained Earnings 4 478 559 3 819 472 3 782 618 1 997 276 930 110
Total Stockholders’ Equity 12 478 559 11 819 472 11 782 618 9 997 276 8 930 110
Total Liabilities and
Stockholders’ Equity 22 298 020 20 628 128 17 229 224 16 476 104 16 958 241
 JSC Foods Corporation
Statements of Cash Flow
For the Years Ending December 31, 2011-2014

2014 2013 2012 2011

Cash Flows from Operating Expenses
Income before Taxes 3 798 696 2 909 791 2 550 488 1 524 523
Adjustments:
Depreciation 2 600 000 2 250 000 1 800 000 1 650 000
Changes in the following accounts
Decrease (Increase) in Accounts
Receivable (378 701) (199 286) (268 087) (57 787)
Decrease (Increase) in Inventories (349 306) (702 330) (504 638) 58 903
Increase (Decrease) in Accounts Payable 304 558 608 437 839 116 423 788
Increase (Decrease) in Other Current
Liabilities 56 900 (12 290) 10 302 (7 202)
Income Taxes Paid (990 262) (857 034) (646 787) (423 246)
Cash Flows from Operating Activities 4 975 631 3 998 326 3 531 216 3 432 134

Cash Flows from Investing Activities

Acquisitions of PPE (3 500 000) (4 500 000) (1 500 000) (1 500 000)
Acquisitions of Other Noncurrent Assets 89 992 (28 839) (20 607) (48 745)
Cash Flows from Investing Activities (3 410 008) (4 528 839) (1 520 607) (1 548 745)

Cash Flows from Financing Activities

Payment of Cash Dividends (2 000 000) (2 000 000)
Loans, Net of Payments 500 000 2 750 000 (2 000 000) (2 000 000)
Cash Flows from Financing Activities (1 500 000) 750 000 (2 000 000) (2 000 000)
Net Change in Cash 65 623 219 489 10 609 (116 611)
Cash, Beginning 996 904 777 415 766 805 883 416
Cash, Ending 1 062 527 996 904 777 415 766 805

Before the end of 2014, the president of JSC Foods Corporation had instructed the Vice President for
Finance to prepare for the 2015 Projected Financial Statement. Below are the assumptions for 2015.
Assumptions:
(1) Sales are expected to increase by 10% in 2015 from the 2014 sales level. This growth assumption is
based on the assessment of the external and internal factors related to the JSC Foods Corporation
and the historical growth of the company. The company sales grew by 10.4% annually from 2010 to
2014.
(2) The following financial statement accounts are expected to vary with sales based on the 2014
financial statements:
a. Cost of sales
b. Cash
c. Trade accounts receivable
d. Inventories
e. Other currents assets
f. Trade accounts payable

Variable operating expense is 7.5% of sales. Depreciation expense is 10% of the gross
beginning balance of property, plant, and equipment. As of December 31, 2014, the gross
balance of PPE is P26,000.00. For January 2015, P5,000,000 new PPE will be acquired. It is the
policy of the company that PPE acquired in the first half of the year will be depreciated for on
full year.
(3) As of December 31, 2014, there are two long-term loans. Both have annual interest rate of 8%.
a. The first loan will mature on June 30, 2015 and the remaining principal balance to be paid on
June 30, 2015 is P1,250,000.
b. The second loan amounting to P3,000,000 which has incurred on December 31, 2014 is paid
at the rate of P500,000 principal balance every June 30 and December 31.

New loans of P3,500,000 will be incurred in December 31, 2015 payable at the rate of P500,000
every June 30 and December 31. Annual interest rate is at 8%
(4) Other noncurrent assets and liabilities and other current liabilities will remain unchanged
(5) Income tax rate is 30% of the income before taxes. Seventy-five percent of the income tax expense
will be paid in 2015 while the balance will be paid in 2016
(6) Cash dividends of P2,000,000 will be paid for 2015.
 PARAÑAQUE NATIONAL HIGH SCHOOL-BACLARAN
SENIOR HIGH SCHOOL
S.Y. 2019-2020

Name: ______________________________________________ Date: ____________________________________________

PROJECTED FINANCIAL STATEMENT

ACTIVITY #1
PROJECTED INCOME STATEMENT
In January 2016, the president of the CL Company, a merchandise trading company, asked her
accountant to prepare a projected financial position and statement of financial position and statement of profit
or loss for 2016. The president wants to find out how much cash dividends can be declared given the good
performance in 2015. The company’s loan covenant , however, states that the company’s current ratio cannot
fall below 1.20. While the total debt-equity ratio was high in 2015, this ratio has to improve and cannot exceed
2.5 by the end of 2016. The president was initially planning to recommend to the board the declaration of 60%
of net income in 2015 as cash dividends in 2016.

The statement of financial position as of December 31, 2015 and the statement of profit or loss for the year
ending December 31, 2015 are shown in Table 1: CL Company
JSC Foods Corporation
Statements of Financial Position
December 31, 2015

Assets
Currents Assets
Cash Php 6 000 000
Account Receivables 25 500 000
Inventories 31 500 000 63 000 000
Property, Plant and Equipment Net 50 000 000
Less: Accumulated Depreciated 10 000 000 40 000 000
Total Assets 103 000 000
Liabilities and Stockholder’s Equity
Current Liabilities:
Account Payables 13 250 000
Accrued Expense Payable 16 000 000
Income Taxes Payable 2 100 000
Current Portion of Long-Term Debt 10 000 000 41 350 000
Long-Term Debt 35 000 000
Total Liabilities 76 350 000
Stock Holders’ Equity
Capital Stock 15 000 000
Retained Earnings 11 650 000 26 650 000
Total Liabilities and Stockholders’ Equity 103 000 000

CL Corporation
Statements of Profit or Loss
For the Years Ending December 31, 2015

Net Sales Php200 000 000

Cost of Sales 150 000 000
Gross Profit 50 0000
Operating Expenses:
Variable Php15 000 000
Depreciation 5 000 000
Other fixed cost 10 000 000 30 000 000
Income before interest and taxes 20 0000 000
Interest Expense 2 500 000
Income before taxes 17 5000 0000
Income Taxes 7 000 000
Net Income Php10 500 000