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Business Finance - Midterm Exams Problem 3

Amex Foods Corporation's statements of profit or loss and financial position for 2017-2019 are presented. According to the statements: - Net sales and profits decreased from 2017 to 2019, while costs remained steady. - Current assets declined from 2018 to 2019 as cash, receivables, and inventories fell. Property and equipment also decreased. - Current liabilities decreased from 2018 to 2019 as payables and other obligations reduced. Long-term debt also lowered. - Retained earnings and total equity declined from 2018 to 2019, though the company remained profitable.

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506 views2 pages

Business Finance - Midterm Exams Problem 3

Amex Foods Corporation's statements of profit or loss and financial position for 2017-2019 are presented. According to the statements: - Net sales and profits decreased from 2017 to 2019, while costs remained steady. - Current assets declined from 2018 to 2019 as cash, receivables, and inventories fell. Property and equipment also decreased. - Current liabilities decreased from 2018 to 2019 as payables and other obligations reduced. Long-term debt also lowered. - Retained earnings and total equity declined from 2018 to 2019, though the company remained profitable.

Uploaded by

Rina Lynne Baricuatro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PROBLEM 3

AMEX FOODS CORPORATION


Statements of Profit or Loss
For the Years Ending December 2017 - 2019

2019 2018 2017


Net Sales ₱47,345,223 ₱52,501,085 ₱42,174,283
Cost of Sales 37,988,628 41,954,730 33,980,174
Gross Profit 9,356,595 10,546,355 8,194,109
Operating Expense 6,196,804 6,497,659 5,393,621
Operating Income 3,159,791 4,048,696 2,800,488
Interest Expense 250,000 250,000 250,000
Income before Taxes 2,909,791 3,798,696 2,550,488
Taxes 872,937 1,139,609 765,146
Net Income ₱2,036,854 ₱2,659,087 ₱1,785,342

AMEX FOODS CORPORATION


Statements of Financial Position
as at December 31, 2017-2019

2019 2018 2017


Assets
Current Assets
Cash ₱996,904 ₱1,062,527 ₱777,415
Trade Receivables 1,921,799 2,300,500 1,722,513
Inventories 4,499,998 4,849,304 3,797,668
Other Current Assets 983,746 1,050,000 984,786
8,402,447 9,262,331 7,282,382
Non Current Assets
Property Plant and Equipment, net 11,300,000 12,200,000 9,050,000
Other Noncurrent Assets 925,681 835,689 896,842
12,225,681 13,035,689 9,946,842
Total Assets ₱20,628,128 ₱22,298,020 ₱17,229,224

Liabilities and Equity


Current Liabilities
Trade Payables ₱4,746,252 ₱5,050,810 ₱4,137,815
Income Taxes Payable 283,705 433,051 267,801
Long-term Debt, current 2,500,000 2,250,000 1,000,000
Other Current Liabilities 28,700 85,600 40,990
7,558,657 7,819,461 5,446,606

Business Finance
SY 2019-2020 | Midterm Exams
AMEX FOODS CORPORATION
Statements of Financial Position (continuation)
as at December 31, 2017-2019

2019 2018 2017


Non Current Liabilities
Long-term Debt, net of current ₱1,250,000 ₱2,000,000 -
Total Liabilities 8,808,657 9,819,461 5,446,606

Stockholders' Equity
Capital Stock 8,000,000 8,000,000 8,000,000
Retained Earnings 3,819,472 4,478,559 3,782,618
Total Stockholders' Equity 11,819,472 12,478,559 11,782,618

Total Liabilities and Equity ₱20,628,129 ₱22,298,020 ₱17,229,224

Business Finance
SY 2019-2020 | Midterm Exams

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