GSG Trading Corporation 

Statement of Financial Position

As of December 31, 2019
             
          Change  
      2019 2018 Peso %
Assets          
  Cash   75,000                       (6.25%)
80,000 (5,000)
  Marketable Securities                                    90.00%
95,000 50,000 45,000
  Accounts Receivable, net             150,000             10% 
165,000 15,000
  Inventory   225,000                     12.50%
200,000 25,000
  Property, Plant and                     (10,000)  (4%)
Equipment, net 240,000 250,000  
Total Assets    800,000                      9.59% 
730,000 70,000
             
             
Liabilities and Shareholders’          
Equity
  Accounts Payable              100,000           10.00%
90,000 (10,000)
  Short Term Notes   120,000                    (20%)
Payable 150,000 (30,000)
  Bonds Payable                                50.00%
180,000 120,000 60,000
  Common Stock   200,000                     25.00%
160,000 40,000
  Retained Earnings                     10,000 5.00%
210,000 200,000
Total Liabilities and       70,000   
Shareholders’ Equity
 Statement of Financial Position
As of December 31, 2019
Assets      Amount   % 
  Cash              45,000 11.25%
  Marketable Securities   60000 15%
  Accounts Receivable, net              65,000 16.25%
  Inventory   80000 20%

  Property, Plant and Equipment, net            150,000 37.50%

Total Assets              400,000 100%
         
         
Liabilities and Shareholders Equity      
  Accounts Payable   45,000 11.25%

  Short Term Notes Payable              62,000 15.50%

  Bonds Payable              75,000 18.75%
  Common Stock   125,000 31.25%
  Retained Earnings   93,000 23.25%
Total Liabilities and Shareholders Equity     100%
Activity # 3- State the effect of the following transactions on current ratio.
Use INCREASE, DECREASE OR NO EFECT for your answer. Assume that the current
ratio is presently greater than 1

1. Collection of accounts receivables NO EFFECT

2. Collection of accounts receivable within the discount period DECREASE
3. Declaration of cash dividends DECREASE
4. Additional stocks sold for cash INCREASE
5. Accounts payable are paid INCREASE
6. Equipment purchased for cash DECREASE
7. Inventory purchases are made for cash NO EFFECT
8. Inventory purchases are made on account DECREASE
9. Sold an inventory on account INCREASE
10. Sold an inventory for cash INCREASE

 
Activity # 4- State the effect of the following transactions on current ratio.
Use INCREASE, DECREASE OR NO EFECT for your answer. Assume that the current
ratio is presently less than 1

1. Collection of accounts receivables NO EFFECT

2. Collection of accounts receivable within the discount period DECREASE
3. Declaration of cash dividends DECREASE
4. Additional stocks sold for cash INCREASE
5. Accounts payable are paid DECREASE
6. Equipment purchased for cash DECREASE
7. Inventory purchases are made for cash NO EFFECT
8. Inventory purchases are made on account INCREASE
9. Sold an inventory on account INCREASE
10. Sold an inventory for cash INCREASE