1. Group # 4
Diana Lynn C. Ching
Cyma Edel S. Alba
Rochelle R. de Guzman
Maikko Ella M. Olaya
Marie France A. Cortez
Racquel Angelei L. Castaneda
Michelle Gatdula

2. I. Introduction & Profit Plan
Peter Hynes
- Created a new and improved
commercial paint spray
Dispensers of California, Inc.
- A corporation formed by Peter
Hynes and his friends
- Was able to gain a patent for the
paint spray with a legal life of 16
years

3. II. Transaction Worksheet
The diagram shows the impact of the different transactions Peter needs to
consider for the business:

4. III. Trial Balance

5. IV. Statement of Cash Flow
Cash Balance as shown in the
Ending Balance Sheet

6. V. Income Statement
Retained Earnings as shown in
the Ending Balance Sheet
Patent was amortized over its
projected useful life of 6 years
because it was purchased
rather than developed within
the company.
Redesign cost expensed
No Inventory left at the end of
the period

7. VI. Ending Balance Sheet
The Dispenser’s of California, Inc. Ending Balance Sheet reflects a Dual Aspect, where we find that the
Total Amount of Assets = Total Amount of Liabilities + Equity

8. VII. Conclusion/Recommendation
If you were one of Peter Hyne’s
friends, would you invest your
money in this company?
☐ YES ☐ NO

9. VII. Conclusion/Recommendation
Would you invest your money in this company?
Considerations:
☐ Reliability Projected Profit Plan and Financial Statements
☐ Return on Equity
☐ Return on Sales
☐ Current Ratio
=
Net Income after Tax
Total Owners’ Equity
=
$ 52,500
$ 200,000
= 26.25%
✓
✓
=
Net Income after Tax
Total Revenue
=
$ 52,500
$ 598,500
= 8.77%✓
=
Total Current Assets
Total Current Liabilities
=
$ 93,500
$ 22,500
= 4.16✓