Bacayo 07 Activity 1 Entrep

BM2211
Name: Daryll John O. Bacayo

BSBA 301
P-M-I CHART
Instruction: Respond to the scenario below by using the P-M-I Chart. Write your answers in the spaces
provided. (20 points)
 In the Interesting box, write some facts about the specific financial statement.
Scenario: Shark Loans received a request for a construction loan from Wendy Services Inc. This
construction loan will be used to build their fifth branch in Pasay. The company submitted its balance
sheet and income statement. Help Shark Loans choose which financial statement they would use as a
basis on whether they will accept or reject Wendy Services Inc.'s request. Refer to Page 2. Justify your
Plus Minus Plus Minus

- The total amount of cash for -The cash amount for 200A is 200 billion is a much nicer amount Since the profit is much lower and
200 B is within the acceptable planned for and not significantly for service income and a is based on the loan budget, the
budget range and is not discounted (166,320.00) respectable loan budget (900,000) operational income of 200 A may
excessive (332,640.00) - A very low-cost and low-profit not be enough to meet the
- 200 A, which is a reasonable amount of 200 B was paid for the expectations for revenue
amount for producing a lot of account (59,675.00). (600,000).
money, was received as payment - The office furnishings for 200 B
for the account (119,350.00) are an expensive investment,
- The cost of office supplies for costing over 300,000. Although it
200 A is around (261,800.00). It costs a little more than 200 A, it is
didn't cost much at all, and the far better.
price was fair. - Compared to a regular amount,
- Within the budget, a 200 the cumulative depreciation of 200
billion dollar total depreciation A is slightly cheaper and less
reflects a significantly larger expensive (53,900)
total capital value (507,150.00) - The 200 A B. Sia-ko Capital is Interesting
not quite underpriced (507,150.00),
but it offers excellent value. Equipment, labor, and utilities are all being rented in both 200A and
200B. The net income would differ depending on how the deduction
Interesting was calculated, as would the service revenue. As a result, the total of
- In 200 A and 200 B, there are only two assets with the same price. all three companies' expenses, which together make up the loan's net
To the total, add their office supplies and pre-paid insurance. budget, is exactly the same.
- The expense for each is the same when their salaries are due (200
A & 200 B).
decision.
Response 1: Statement ofFinancialPosition Response 2: IncomeStatement
The choice is to support Shark Loans, and the income statement is

07 Activity 1 *Property ofSTI
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BM2211
one financial statement that approves Wendy's request. However,
a more intelligent move would involve a loan with income, which
has a great solution to offer for their financial situation as well as
for loan construction. The result of 200 B could significantly affect
the company's revenue, overall net income, and the favorable
returns on their construction finance.

Page 2of2
BM2211
Names Section Date
WENDY SERVICES INC.

Balance Sheet
December 31
200A 200B
Assets
Cash ₱166,320.00 ₱332,640.00
Accounts Receivable 119,350.00 59,675.00
Office Supplies 5,775.00 5,775.00
Prepaid Insurance 15,400.00 15,400.00
Office Equipment 261,800.00 300,000.00
Accumulated Depreciation 53,900.00 207,900.00 61,500.00 238,500.00
Total Assets ₱514,745.00 ₱651,990.00
Liabilities and Owner's Equity
Accounts Payable ₱53,900.00 ₱107,800.00
Salary Payable 9,240.00 9,240.00
Unearned Revenue 23,100.00 27,800.00
Total Liabilities ₱86,240.00 ₱144,840.00
B. Sia-Ko, Capital 428,505.00 507,150.00
Total Liabilities and Owner's Equity ₱514,745.00 ₱651,990.00
WENDY SERVICES INC

Income Statement
December 31
200A 200B
Revenue:
Service Revenue ₱600,000.00 ₱900,000.00
Expenses:
Equipment rental expense ₱200,000.00 ₱200,000.00
Wages expense ₱90,000.00 ₱90,000.00
Utilityexpense ₱60,000.00 ₱60,000.00
Totalexpenses ₱350,000.00 ₱350,000.00
Net Income ₱250,000.00 ₱550,000.00
Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting
16
details, and factual scenarios
Organization Expressed the points in a clear and
of Ideas logical arrangement of ideas in the 4
paragraph
TOTAL 20

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BM2211

Name: Daryll John O. Bacayo

Plus Minus Plus Minus

Response 1: Statement ofFinancialPosition Response 2: IncomeStatement

The choice is to support Shark Loans, and the income statement is

07 Activity 1 *Property ofSTI

Names Section Date

WENDY SERVICES INC.

WENDY SERVICES INC

Rubric for grading:

07 Activity 1 *Property ofSTI

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