DRACARYS INC.

Statement of Comprehensive Income

For the year ended December 31, 2016

Note (in PhP Pesos)

Sales (net) 1 583,120.00
Cost of goods sold 2 (234,075.00)
Gross profit 349,045.00

Other income 3 30,090.00

Other losses 4 (106,000.00)
Distribution costs 5 (106,228.00)
Administrative expenses 6 (90,680.00)
Unrealized gain on FAFVPL 2,000.00
Finance costs (4,520.00)
Profit before tax 73,707.00
Provision for income tax (30%) (22,112.10)
Net income 51,594.90

Other comprehensive income:

Increase in revaluation surplus 190,000.00
Decrease in FAFVOCI (1,900.00)
Remeasurement gain 13,200.00
Total other comprehensive income 201,300.00
Tax on OCI (30%) (60,390.00)
Total OCI (net of tax) 140,910.00

Total comprehensive income 192,504.90

Retained earnings, beg. 440,670.00

Prior period adjustment* (10,000.00)
Net income 51,594.90
Dividends declared (33,000.00)
Retained earnings, end 449,264.90

Correcting entry made:

Retained earnings (beg.) 10,000.00
Accumulated depreciation
10,000.00
Notes:

Note 1 - Net sales

Gross sales 595,200.00
Sales returns and allowances (11,200.00)
Sales discounts (880.00)
Net sales 583,120.00

Note 2 - COGS
Beginning inventory 89,700.00
Purchases 193,000.00
Freight in 5,525.00
AFS 288,225.00
Less: Ending inventory
(20,550+33,600) 54,150.00
COGS 234,075.00

Note 3 - Other income

Dividends received from subs. 10,200.00
Gain on sales of equipment 18,500.00
Interest income 700.00
Accrued interest income 690.00
Total 30,090.00

Note 4 - Other losses

Loss on fire 56,000.00
Loss on lawsuit 50,000.00
Total 106,000.00

Note 5 - Distribution costs

Sales salaries and commissions 35,108.00
(35,000 + (3,600*3%))
Advertising expense 16,000.00
Travel expenses - sales rep. 4,560.00
Light expenses (16,400*40%) 6,560.00 <- the light expense may also be allo
Misc. selling expense 2,200.00
Expired prepaid advertising 800.00
Depreciation - mach. and equip. 25,000.00
Depreciation - bldg (40,000x40%) 16,000.00
Total 106,228.00

Note 6 - Administrative expenses

Legal services 2,225.00
Insurance and licenses 8,500.00
Light expenses (16,400*60%) 9,840.00 <- the light expense may also be allo
 Telephone and postage expense 1,475.00
Officers' salaries 36,600.00
Bad debts expense 7,460.00
Supplies expense (2,180-1,600) 580.00
Depreciation - bldg (40,000 x 60%) 24,000.00
Total 90,680.00

Computation of bad debts expense:

Ending allow. (261,000*0.03) 7,830.00
Less: Beg. Allow 370.00
Bad debts expense 7,460.00

Computation of depreciation:
Machinery and equipment 375,000.00
Useful life (yrs) 15.00
Annual depreciation 25,000.00

Building 800,000.00
Useful life (yrs) 20.00
Annual depreciation 40,000.00
the light expense may also be allocated entirely to admin.

the light expense may also be allocated entirely to admin.