a) Using the financial capital maintenance approach, how much is the profit in 2020

b.) Using the data and the conceptual framework, how much is the equity at the end of 2020?

 

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True Beauty Incorporated had the following balances of assets and liabilities in 2020: Beginning balances: Cash and cash equivalents Trade and other receivables Inventories Prepaid expenses Property, plant, and equipment - net Ending balances: Cash and cash equivalents Trade and other receivables Inventories Prepaid expenses Property, plant, and equipment - net P250,000 150,000 210,000 50,000 350,000 P230,000 250,000 300,000 40,000 300,000 Accounts payable Notes payable Bonds payable Mortgage payable Accounts payable Notes payable Bonds payable Mortgage payable P120,000 80,000 200,000 240,000 P100,000 60,000 170,000 240,000 True Beauty Incorporated had the following balances of assets and liabilities in 2020: Beginning balances: Cash and cash equivalents Trade and other receivables Inventories Prepaid expenses Property, plant, and equipment - net Ending balances: Cash and cash equivalents Trade and other receivables Inventories Prepaid expenses Property, plant, and equipment - net P250,000 150,000 210,000 50,000 350,000 P230,000 250,000 300,000 40,000 300,000 Accounts payable Notes payable Bonds payable Mortgage payable Accounts payable Notes payable Bonds payable Mortgage payable P120,000 80,000 200,000 240,000 P100,000 60,000 170,000 240,000