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07 ACTIVITY 1 Entrep

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NAME:Basiño, Bea Lear S.

SECTION:BSTM504

Instruction: Respond to the scenario below by using P-M-I Chart. Write your
answers on the spaces provided.

Response 1: Statement of Financial Position

Plus Minus

It shows the total assets. As you can This reveals the earnings of the
see in 200A there’s 514, 745 and in business which is, The Wendy
200B there’s 651,990. You can also Services Inc. Earned 2019 was 651,
see the total liabilities in 200A there’s 990.00 and the year 2020 they earned
86,240. It cleanly indicated the assets 514,745.00. And the total of their
that the business owned. liabilities and owners equity are the
same of their asset. Meaning, this
business is already bankrupt due to
their loans.

Interesting

It basically showed how the business stand in terms of assets and liabilities. It is
interesting to see that the company have more accounts receivable (119,350)
than accounts payable (53,900)in 200A. Basically, you can see here how much
money Wendy Services Inc. Owe. It also interesting in 200B where you can see
that the total liabilities (144,840)is quite big, but it can manage through the
amount of the assets. They are still gaining, but their service business doesn’t
have any assets that can have money to pay if they’re ever able to lend.

Response 2: Income Statement


Plus Plus

It indicates Wendy Services Inc.’s In the financial situation, the income


income and expenditures. Wendy statement looks the same since they
Services Inc.’s financial statement earned service revenue of 90,000.00 in
shows the net income for the entire 2029 and service revenue of 60,000.00
year which demonstrates whether in 2020. Then, concentrate on their net
there is benefit or loss. sales as they got 550,000.00 in 2019,
but they only got 250,000.00 in the
year 2020. This means that the year
2020 is diminishing.

Interesting

The income statement basically showed the profit-and-loss in the Wendy Services
Inc. It is interesting to see in 200B that the Wendy Services Inc.’s net income is
550,000.00 and is quite larger than the total
My Decision: My decision on this one is that the Loan Sharks should use income
statement as a basis on whatever they will accept or reject Wendy Services Inc.’s
request. Because, it basically shows the company’s profit-and-loss. You can also
see here the profit of Wendy Services Inc. and how responsible they are in
handling the expenses of their company. If the Shark Loans that the Wendy
Services Inc. profitable, they will easily accept their request. If they see that the
loss is more than the net income, the Shark Loans might reject Wendy Services
Inc.’s request.

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