XYZ COMPANY

Jetro Cabanero - THE PROPRIETOR

STATEMENTS FINANCIAL POSITION
DECEMBER 31, 2020 AND 2019
(Amounts in Philippine Pesos)

Notes 2020 2019

ASSETS

CURRENT ASSETS
Cash 3 P 192,245 P 1,556,282
Trade and other receivables 4 7,294,669 8,819,847
Inventories 5 218,761 541,550
Total Current Assets 7,705,675 10,917,679

NON - CURRENT ASSETS

Property and equipment 6 4,831,416 4,158,627
4,831,416 4,158,627

TOTAL ASSETS P 12,537,091 P 15,076,306

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Trade and other payables 7 P 9,072,207 P 10,280,227
Loan Payable 8 - 148,028
Income tax payable - 46,918
9,072,207 10,475,172

EQUITY
Cabanero, Capital 3,464,884 4,601,133

TOTAL LIABILITIES AND EQUITY P 12,537,091 P 15,076,305

See Notes to Financial Statements

 XYZ COMPANY
Jetro Cabanero - THE PROPRIETOR
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
(Amounts in Philippine Pesos)

Notes 2020 2019

REVENUES 9 P 19,160,802 P 30,177,285

COST OF SERVICES 10 (18,590,424) (27,892,923)

GROSS PROFIT 570,378 2,284,362

OTHER INCOME 11 602 700

ADMINISTRATIVE EXPENSE 12 (1,707,229) (1,739,824)

FINANCE COST 13 - (76,867)

INCOME BEFORE TAX (1,136,249) 468,371

INCOME TAX EXPENSE 15 - (46,918)

INCOME P (1,136,249) P 421,453

See Notes to Financial Statements

 XYZ COMPANY
Jetro Cabanero - THE PROPRIETOR
STATEMENTS OF CHANGES IN CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
(Amounts in Philippine Pesos)

2020 2019
CABANERO, CAPITAL
Beginning balance P 4,601,133 P 4,429,680
Add: Additional Investment - -
Net Income (loss) (1,136,249) 421,453
3,464,884 4,851,133
Less: Drawings - (250,000)

Ending Capital P 3,464,884 P 4,601,133

See Notes to Financial Statements

 XYZ COMPANY
Jetro Cabanero - THE PROPRIETOR
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
(Amounts in Philippine Pesos)

Notes 2020 2019

CASH FLOWS FROM OPERATING ACTIVITIES
Income before tax P (1,136,249) 468,371
Adjustments for:
Interest Expense 13 - 76,867
Depreciation 14 225,026 340,719
(911,223) 885,957
Add(Deduct) changes in working capital
Increase in Inventories 322,789 (541,550)
(Increase)Decrease in Trade and other receivables 4 1,525,178 (4,676,634)
(Increase)Decrease in Trade and other payables 7 (1,208,020) 9,284,273
Income tax payment (46,918) (325,731)
Net Cash (used) provided by Operating Activities (318,194) 4,626,315

CASH FLOWS FROM INVESTING ACTIVITIES

Purchased of Equipment 6 (897,815) (2,255,669)

Net Cash Used in Financing Activities (897,815) (2,255,669)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash withdrawal (250,000)
Payment of loan 8 (148,028) (695,104)
Interest Expense 13 - 76,867
Net Cash provided(used) by/in Financing Activities (148,028) (868,237)

NET INCREASE IN CASH (1,364,037) 1,502,409

CASH AT BEGINNING OF YEAR 1,556,282 53,873

CASH AT END OF YEAR P 192,245 P 1,556,282

See Notes to Financial Statements

3. CASH

This account consists of:

2020 2019
Cash in bank P 192,245 P 1,556,282

4. TRADE AND OTHER RECEIVABLES

This account consists of:

2020 2019
Accounts receivable P 6,854,400 P 8,052,107
Creditable tax 354,392 675,394
Deferred Input Tax 85,877 92,346
P 7,294,669 P 8,819,847

5. INVENTORIES

This account consists of:

2020 2019
Inventories P 218,761 P 541,550

6. PROPERTY AND EQUIPMENT

This account consists of:

2020
Beginning Ending
Balance Additions Disposals Balance
Cost:
Land P 846,000 P P - P 846,000
Building improvements 863,934 700,126 1,564,060
Office equipment 193,527 149,861 P - 343,388
Other equipment 889,297 47,828 - 937,125
Service Vehicle 2,491,781 - - 2,491,781
P 5,284,539 P 897,815 P - P 6,182,354
Accumulated Depreciation:
Building improvements P 27,492 P P - P 27,492
Office equipment 83,146 29,972 - 113,118
Other equipment 267,624 9,566 - 277,190
Service Vehicle 747,650 185,488 - 933,138
1,125,912 225,026 - 1,350,938
Carrying value P 4,158,627 P 4,831,416

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 2019
Beginning Ending
Balance Additions Disposals Balance
Cost:
Land P 846,000 P - P - P 846,000
Building improvements 164,995 698,939 - 863,934
Office equipment 193,527 - P - 193,527
Other equipment 195,067 694,230 - 889,297
Service Vehicle 1,629,281 862,500 - 2,491,781
P 3,028,870 P 2,255,669 P - P 5,284,539
Accumulated Depreciation:
Building improvements 27,492 27,492
Office equipment P 50,977 P 32,169 P - P 83,146
Other equipment 144,562 123,062 - 267,624
Service Vehicle 562,162 185,488 - 747,650
785,193 340,719 - 1,125,912
Carrying value P 2,243,677 P 4,158,627

7. TRADE AND OTHER PAYABLES

2020 2019
Accounts payable P 8,070,698 P 9,341,126
Deferred Output vat 734,400 862,726
SSS, Philhealth,Pagibig Contribution payable 267,109 76,375
P 9,072,207 P 10,280,227

8. LOAN PAYABLE

This account consists of:

2020 2019
Current Portion P - P 148,028

9. REVENUES

This account consists of:

2020 2019
Rendering of services P 19,160,802 P 30,177,285

10. COST OF SERVICES

This account is composed of the following:

2020 2019
Cost of Services:
Materials, Supplies and facilities P 14,936,964 P 18,848,951
Compensation and other benefits 3,210,050 8,024,034
Repairs & maintenance 248,356 710,924
Depreciation 195,054 308,550
Others - 464
Total P 18,590,424 P 27,892,923

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11. OTHER INCOME

This account consists of:

2020 2019
Interest income P 602 700

12. ADMINISTRATIVE EXPENSE

This account consists of:

Notes 2020 2019
Communication, light and water P 283,236 P 273,442
Fuel and oil 204,896 262,828
Depreciation 14 32,169 32,169
Insurance and medical 106,045 87,629
Tolling fee 62,646 59,752
Office Supplies 152,249 315,147
Taxes and Licenses 119,590 119,590
Repairs and Maintenance 263,495 11,985
Transportation and travel 6,088 46,060
Representation 182,382 56,120
Freight and courier/Meal 222,966 386,206
Miscellaneous 71,467 88,896
P 1,707,229 P 1,739,824

13. FINANCE COST

The account is composed of:

2020 2019
Interest Expense P - P 76,867

14. DEPRECIATION

The account is composed of:

2020 2019
Office equipment P 29,972 P 32,169
Other equipment 9,566 123,062
Service Vehicle 185,488 185,488
P 225,026 P 340,719

15. INCOME TAXES

2020
Income before tax P (1,136,249)
Add(Deduct)
Permanent differences:
Interest income subject to final tax (602)
Taxable Income (1,136,851)

Income tax due P -

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16. NET OPERATING LOSS CARRY OVER
Year Amount
2020 P 1,136,851

Under Republic Act No. 11494, also known as the "Bayanihan to Recover as One Act", NOLCO
incurred in the taxable year 2020, can be carried over to the next five (5) consecutive taxable years
from 2021 to 2025.

17. RELATED PARTY TRANSACTIONS

Related party relationships exist when one party has the ability to control, directly or indirectly
through one or more intermediaries, the other party or exercise significant influence over the other
party in making financial and operating decisions. This includes: (1) individual owning, directly or
indirectly through one or more intermediaries, control, or are controlled by, or under common control
with, the Company; (2) associates; and (3) individuals owning, directly or indirectly, an interest in the
voting power of the Company that gives them significant influence over the Company and close
members of the family of any such individual.

No compensation on key management personnel