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Name: Saira D. Villar. Date: Dec. 2021 Section: BSTM3101 Instructor: Mr. Edmund Lahuylahuy P-M-I CHART 07 Activity 1

The document is a P-M-I chart activity analyzing the financial statements of Wendy Services Inc., who is requesting a construction loan from Shark Loans. The statement of financial position and income statement of two previous years (200A and 200B) are considered. The response chooses the income statement as the basis for Shark Loans' decision, noting that 200B shows a higher service revenue that would allow easier repayment of the loan and greater profit for Shark Loans.

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112 views

Name: Saira D. Villar. Date: Dec. 2021 Section: BSTM3101 Instructor: Mr. Edmund Lahuylahuy P-M-I CHART 07 Activity 1

The document is a P-M-I chart activity analyzing the financial statements of Wendy Services Inc., who is requesting a construction loan from Shark Loans. The statement of financial position and income statement of two previous years (200A and 200B) are considered. The response chooses the income statement as the basis for Shark Loans' decision, noting that 200B shows a higher service revenue that would allow easier repayment of the loan and greater profit for Shark Loans.

Uploaded by

Saira Villar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Name: Saira D. Villar. Date: Dec.

2021

Section: BSTM3101 Instructor: Mr. Edmund Lahuylahuy

P-M-I CHART 07 Activity 1

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

• 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 Position

Plus Minus

The cash total for 200 B is a big amount for a The cash total for 200A is lesser
budget (₱332,640.00) (₱166,320.00).
The account recievable for 200 A is a good The account recievable for 200 B can end up
amount that can make a high profit having a low profit (₱59,675.00)
(₱119,350.00) The office equipment of 200 B is about
200 A has a good financial statement (₱300,000.00) a bit expensive than 200 A.
(₱261,800.00) The accumulated depreciation of 200 A has
The accumulated depreciation of 200 B has a low price (₱53,900.00)
an enough amount. (₱61,500.00) The B.Sia-ko Capital of 200 A is good value
The B.Sia-ko Capital of 200B has much a but not that enough (₱428,505.00).
higher amount (₱ 507,150.00)

Interesting
200 A & 200 B these two assets have most likely to have the same value and price except for their
account recievable. 200 B have a lesser value that can also affect their profit to go down.

Response 2: Income Statement

Plus Minus

The service revenue for 200 B has a better The service revenue for 200 A is lesser when it
amount for the income and good budget for a comes to their income and budget for a loan.
loan. (₱900,000.00) (₱600,000.00).

Interesting

200 A & 200 B for me has a good income statement that can help the Shark Loans not to worry for
Windy's INC can pay them well when their new building can start gaining profit.
My Decision

My decision is that Shark Loans will based Wendy Services INC income statement to accept their
request. Because Wendy's INC have a better investment of loan which can make and have a great
income that can help them to easily pay their financial and construction loan. And Shark Loans as well
will gain more profit.

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