P-M-I CHART

Instruction: Respond to the scenario below by using the P-M-I Chart.

?In the Interesting box, write down 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 for the building of their fifth branch in Pasay. The company submitted their statement of financial position 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 decision.

Response 1: Statement of Financial PositionResponse 2: Income Statement

Plus: Plus:

Minus: Minus:

Interesting: Interesting:

My Decision:

WENDY SERVICES INC. Balance Sheet December 31 200A 200B Assets Cash P166,320.00 P332,640.00 Accounts Receivable 1 19,350.00 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 P514,745.00 P651,990.00 Liabilities and Owner's Equity Accounts Payable P53,900.00 P107,800.00 Salary Payable 9,240.00 9,240.00 Unearned Revenue 23, 100.00 27,800.00 Total Liabilities P86,240.00 P144,840.00 B. Sia-Ko, Capital 428,505.00 607,150.00 Total Liabilities and Owner's Equity P514,745.00 P651,990.00Revenue: Service Revenue Expenses: Equipment rental expense Wages expense Utilities expense Total expenses Net Income WENDY SERVICES INC Income Statement December 31 200A P60000000 P20000000 P9000000 P6000000 P35000000 P25000000 P200000 .00 P90,000 .00 P60,000 .00 2003 P90000000 P35000000 P55000000