Mahogany

Appliances
Corporation
December 31, 2016

Financial Statements
(in Php)

SANTOS AND ASSOCIATES

CERTIFIED PUBLIC ACCOUNTANTS
SANTOS AND ASSOCIATES
Certified Public Accountants
Taft Avenue, Malate, Manila, Philippines

INDEPENDENT AUDITORS REPORT

To the Board of Directors of Mahogany Appliances Corporation
Ayala Avenue, Makati City, Philippines
REPORT ON THE FINANCIAL STATEMENTS
We audited the accompanying financial statements of Mahogany
Appliances Corporation which comprised the Statement of Financial
Position as at December 31, 2016 and the Statement of Financial
Performance for the period ended December 31, 2016.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with Philippine Financial
Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
AUDITORS RESPOPNSIBILITY
Our responsibility is to express an opinion on these financial statements
based on my audit. We conducted my audit in accordance with Philippine
Standards on Auditing. Those standards require that we comply with
ethical requirement and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts disclosures in the financial statements. The procedures
selected depend on the auditors judgment including the assessment of
the risks of material misstatement of the financial statement whether due
to fraud or error. In making those risks assessments, the auditor considers
internal control relevant to the entitys preparation and fair presentation
of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entitys internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence is sufficient and appropriate to provide

a basis for our audit opinion.
OPINION
In our opinion, the financial statements present fairly, in all material
aspects, the Financial Position of Mahogany Appliances Corporation as at
December 31, 2016 and their financial performance for the period ended
December 31, 2016 is in accordance with Philippine Financial Reporting
Standards.
Report on the Supplementary Information Required under Revenue
Regulations 19-2011 and 15-2010.
Our audit was conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplementary
information required under Revenue Regulations 19-2015 and 15-2016 in
note 38 to the financial statements is presented for purpose of filing with
the Bureau of Internal Revenue and is not a required part of the basic
financial statement. Such information is the responsibility of the
management of the Uniform Textile Inc. The information has been subject
to the auditing procedures applied in my audit of the basic Financial
Statements. In my opinion the information is fairly stated in all material
aspects in relation to the basic financial statement taken as a whole.

FEBRUARY 14, 2017

DENEEN RUTH V. SANTOS

CPA Certificate No. 218150
SEC Accreditation No. 0466-AR-2 (Group A)
February 4, 2013, valid until February 3, 2016
Tax Identification No. 163-257-145
BIR Accreditation No. 08-001998-61-2016,
April 11, 2013 valid until April 10, 2016
PTR No. 3669656 January 2, 2016 Makati City

Mahogany Appliances Corporation

Statement of Financial Position
As of December 31, 2016
ASSETS
Current Assets
Cash and Cash Equivalents
Trading Securities
Trade and Other Receivables
Inventories

Not
e
(1)

Php442,960.00
182 000.00
1 336 836.00
1 484 220.00

(2)

Prepayments
Total Current Assets

45 086.00
3 491 102.00

Non Current Assets

Property, Plant and Equipment

(3)

7 094 233.00
Php10,585,33
5.00

TOTAL ASSETS
LIABILITIES AND SHAREHOLDER'S EQUITY
Current Liabilities
Trade and other payables
Unearned Rental Income

(4)

2 595 470.00
210 000.00

Other Liabilities
Total Current Liabilities

610 360.00
3 415 830.00

Non Current liabilities

Bonds Payable
Discount on Bonds Payable
Total liabilities
Shareholder's Equity
Share Capital, 50000 shares @ 100 par
Net Income
Total Shareholder's Equity
TOTAL LIABILITIES AND SHAREHOLDER'S
EQUITY

Php2,200,000.
00
158 400.00

2 041 600.00
5 457 430.00

5 000 000
127 905
5 127 905
Php10,585,33
5.00

Note 1: Cash and Cash

Equivalents
Petty Cash Fund
Cash
Total

10250
43271
0
44296
0

Note 2: Trade and other

receivables
Accounts Receivable
Allowance for doubtful accounts
Net Realizable Value
Notes Receivable
Interest Receivable
Total

80830
0
32925
77537
5
55000
0
11461
13368
36

Note 3: Property, Plant and

Equipment
Land and Building
Building improvement
Delivery Equipment
Furniture and Fixtures
Total
Less: Accumulated Depreciation
Net book value

60000
00
55000
0
57500
0
24100
0
73660
00
27176
7
70942
33

Note 4: Trade and other Payables

Interest Payable

14225
20
19580
1
75000
0
17233
3

Income Tax Payable

54816

Accounts Payable
Accrued Expense
Notes Payable

Total

25954
70

Mahogany
Corporation
Statement of
Performance
For the year
December

Sales

Php4,587,14
0.00

Cost of Goods Sold

Gross Profit

3325780.00
1261360.00

Operating Expenses
Income from
Operations
Other Income

1061107.00

Other Charges
Income before Taxes
Provision for Income
Tax

225193.00
182721.00

NET INCOME

200253.00
207661.00

54816.00
Php127,905
.00

Appliances
Financial
ended
31, 2016