1.

Net Sale: This is how much money you've made from selling furniture during a
specific time, like a month or a year.
2. Cost of Sales: This is how much it cost you to make the furniture you sold. It includes
things like materials, labor, and other expenses directly related to making the
furniture.
3. Gross Profit: This is the money you made from selling furniture after subtracting
how much it cost you to make it. It's like your profit before paying any other bills.
4. Operating Expenses: These are the costs you have for running your furniture
business. They include things like paying your employees, rent for your store or
workshop, buying materials, advertising, and other day-to-day expenses.
5. Total Operating Expenses: Just the total amount of money you spent on all your
operating expenses added together.
6. Operating Income: This is what's left after you subtract your total operating
expenses from your gross profit. It's like your profit from just running your furniture
business.
7. Interest Expenses: If you borrowed money and have to pay interest on it, this is
where you put that amount.
8. Income before Taxes: This is your operating income minus any interest expenses. It's
how much money you've made before you have to pay taxes.
9. Taxes: This is the amount of money you owe in taxes based on your income before
taxes.
10. Net Income: This is your final profit after you subtract your taxes from your income
before taxes. It's how much money you get to keep after paying all your expenses and
taxes.

To fill in these numbers, you'll need to look at your financial records and add up all the sales,
costs, expenses, and other numbers for the specific time period you're looking at. Then, you
can plug those numbers into the table to see how your furniture business is doing financially.

1. Operating Activities:

 Net Income: This is the total profit earned by your furniture business after deducting
all expenses, including taxes, from the revenue.
 Depreciation: This represents the gradual decrease in value of your furniture
equipment over time. It's a non-cash expense that reflects the wear and tear of your
assets.
 Changes in Operating Assets and Liabilities: These are changes in the accounts that
are directly related to your day-to-day operations.
o Increase in Accounts Receivable: If the amount owed to your business by
customers increases, it means you've made sales but haven't received payment
yet.
o Increase in Inventory: If the value of your furniture inventory increases, it
means you've purchased more inventory for sale.
o Increase in Accounts Payable: If the amount your business owes to suppliers
increases, it means you've purchased goods or services on credit.
o Net Cash Provided by Operating Activities: This is the net amount of cash
generated or used by your operating activities. It's calculated by adjusting your
Net Income for non-cash expenses like Depreciation and changes in operating
assets and liabilities.
2. Investing Activities:

 Purchase of Equipment: This represents the cash spent on acquiring new furniture
equipment for your business.
 Net Cash Used in Investing Activities: This is the net amount of cash used for
investing activities. It's calculated by subtracting the cash spent on purchasing
equipment from any cash received from the sale of assets.

3. Financing Activities:

 Increase in Capital: This represents any cash received from issuing new shares or
equity in your furniture business.
 Net Cash Provided by Financing Activities: This is the net amount of cash provided
by financing activities. It's calculated by subtracting any cash used for repaying loans
or dividends paid to shareholders from the cash received from issuing new capital.

4. Net Increase in Cash and Cash Equivalents:

 This represents the overall change in your cash and cash equivalents during the
period. It's calculated by adding the net cash provided by operating, investing, and
financing activities.

5. Cash and Cash Equivalents at Beginning and End of the Year:

 Cash and Cash Equivalents at Beginning of the Year: This is the amount of cash
your business had at the start of the year.
 Cash and Cash Equivalents at End of the Year: This is the amount of cash your
business has at the end of the year after accounting for all cash flows during the
period.

By filling in the amounts for each item based on your financial data, you can create a clear
picture of how cash flows in and out of your furniture business throughout the year.

1. Capital (PHP): This refers to the total amount of money invested in the business by
its owners or shareholders. It represents the ownership stake in the company and can
include contributions of cash or assets.
2. Retained Earnings (PHP): Retained earnings are the accumulated profits of the
business that have not been distributed to shareholders as dividends. It includes the
net income generated by the company over time, minus any dividends paid to
shareholders.
3. Total Equity (PHP): Total equity represents the total value of the ownership interests
in the company. It is the sum of capital and retained earnings and reflects the net
worth of the business.
4. Equity at January 1, 2023: This is the total equity of the company at the beginning
of the year 2023, typically carried over from the previous year's financial statements.
5. Increase in Capital: This represents any additional capital invested in the business by
its owners or shareholders during the year. It could result from the issuance of new
shares or contributions of cash or assets.
6. Net Income: Net income is the total profit earned by the business during the year
after deducting all expenses, including taxes, from its revenue.
7. Total Comprehensive Income: Total comprehensive income includes not only net
income but also other comprehensive income items, such as gains or losses from
changes in the value of investments or foreign currency translation adjustments.
8. Equity at December 31, 2023: This is the total equity of the company at the end of
the year 2023, which is calculated by adding the increase in capital, net income, and
other comprehensive income items to the equity at January 1, 2023.

Retained Earnings (PHP):

Imagine your business makes a profit. Instead of distributing all of that profit to shareholders
as dividends, you decide to keep some of it to reinvest in the business. The portion of the
profit that you keep is called retained earnings.

Think of retained earnings as a savings account for your business. It's the sum of all the
profits your business has earned since it started, minus any dividends paid out to
shareholders.

Here's a simple breakdown:

 Profit: The money your business earns after subtracting all expenses from its
revenue.
 Dividends: Payments made to shareholders as a reward for owning shares in the
company.
 Retained Earnings: The portion of the profit that your business keeps and reinvests
to fuel growth, rather than distributing it to shareholders as dividends.

For example, if your business earned a profit of PHP 100,000 this year and decided to pay out
PHP 20,000 in dividends to shareholders, the remaining PHP 80,000 would be added to
retained earnings. This PHP 80,000 represents the accumulated profits that your business has
retained over time to reinvest in its operations, expand, or weather future financial challenges.

Assets: Assets are things your furniture business owns that have value and can help it make
money.

Current Assets: These are things your business owns that it expects to use up or turn into
cash within a year.

 Cash and Cash Equivalents: Money your business has right now or can quickly get
its hands on.
 Accounts Receivable: Money customers owe your business for furniture they've
already bought on credit.
 Inventory: Furniture items your business has ready to sell.

Total Current Assets: The total value of all the quick-to-sell or use-up assets your business
has.

Property, Plant, and Equipment: These are the tools, machinery, and buildings your
business owns and uses to make furniture.

Total Assets: The total value of everything your business owns.

Liabilities and Equity: These are the debts and ownership stakes your business has.

Current Liabilities: These are debts your business has to pay off within a year.

 Accounts Payable: Money your business owes to suppliers for things like furniture
materials.

Total Current Liabilities: The total value of all the short-term debts your business has.

Equity: This is how much of the business belongs to its owners.

 Capital: The money the owners put into the business.

 Retained Earnings: The profits the business has earned over time and kept rather
than paying out to the owners.

Total Equity: The total value of the owners' stake in the business.

Total Liabilities and Equity: The total value of all the debts and the owners' stake in the
business.