For FM-E3

1. ACCOUNTINGANDFINANCE POINT OF
VIEW

2. XYZ Co. in the calendar year just ended
made one sale in the amount of PHP 5M
for merchandise purchased during the
year at a total cost of PHP 4M although
the firm paid in for the merchandise during
the year, it has yet to collect at year end
the PHP 5M from the customer to whom
the sale was made

3. XYZ CORP.
INCOME STATEMENT
For the Year Ended
Sales PHP 5M
Less: Cost of Sales (4M)
Gross
Profit 1M

4. FINANCIAL MANAGER
XYZ CORP.
STATEMENT OF CASH FLOW
For the Year Ended
CASH INFLOW 0
LESS: CASH
OUTFLOW (4M)
NET CASH FLOW (4M)

5. example
-XLY CORPORATION provided the
following details last January 30, 2013
a.) purchases worth PHP 5,985,000
wherein 35% was paid in cash and 65%
was on account
b.) received a telephone bill worth PHP
1,200

6. c.) payment of rent amounting to PHP
8,000 was made
d.) salaries and wages worth PHP
185,000 was allocated, of which 55% was
claimed and the other 45% was unclaimed
e.) sold merchandise amounting to
7,000,000 wherein 75% was on account
and 25% was paid in cash.
Present the Finance and Accounting Point
of view