Professional Documents
Culture Documents
LAPUZ
Unit 174 Goldloop Tower B, Josemaria Escriva Drive
San Antonio, Pasig City, Metro Manila
Telephone No. 6382462
18 March 2014
Dear Mark,
In connection with the review of the financial statements of LIFELINE AMBULANCE RESCUE,
INC., below are my initial findings on the documents that I gathered, to wit:
16,595,691
Provision for Income tax 4,978,707
NET INCOME FOR THE PERIOD Php 11,616,984
===============
B. BALANCE SHEET (INTERIM)
As at December 31, 2013
ASSETS
Current Assets
Cash Php 5,774,276
Accounts Receivable 20,242,499
Inventories – Medical & Marketing Supplies 129,514
Prepayments & Other current assets 89,122
26,235,411
Property, Plant and Equipment (Net) 17,451,820
Pre-operating expenses and other assets 2,000
Current Liabilites
Accounts Payable & Accrues Expenses Php 3,263,196
Non-current liabilities
Loans Payable 18,188,889
Stockholders’ Equity
Capital Stock (Paid-up) 125,000
Retained Earnings 26,112,147
ASSETS
Current Assets
Cash Php 3,037,661
Accounts Receivable 15,804,610
Inventories – Medical & Marketing Supplies 122,840
Prepayment and Other Current Assets 133,105
19,098,217
Property Plant % Equipment (Net0 14,000,682
Pre-operating expenses and Other assets 2,000
Current Liabilities
Accounts Payable & Accrued Expenses Php 5,902,855
Non-Current Liabilities
Loans Payable 16,810,333
Stockholders’ Equity
Paid Up Capital 125,000
Retained Earnings 10,262,711
10,387,711
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY Php 33,100,899
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FINDINGS/COMMENTS:
LIFELINE did not give me an Audited financial statements as at December 31, 2012. Only a copy
of the BIR E-FILING AND PAYMENT SYSTEM dated April 11, 2013 with the payment of
P49,836.76 representing the unpaid tax due for the year 2012.
As far as the Interim Finanacial Statement of LIFELINE as at December 31, 2012 is concerned,
the REVENUES amounted to P49,399,871, while in the returns that they filed with the BUREAU
oF Internal Revenue (BIR) for the same period amounted only to P16,763,633 or a difference of
P32,636,238
As of todate, I have not yet received a copy of the Audited Financial Statements of LIFELINE as
at December 31, 2013. What I got are only copies of the INTERIM FINANCIAL STATEMENTS as
at December 31, 2013. The 2013 INTERIM INCOME STATEMENT has stated REVENUES
amounting to P 66,888,590 , Gross Profit of P 32,823,683 and NET INCOME of P11,616,984.
Based on the INTERIM FINANCIAL STATEMENTS of LIFELINE for the years 2012 and 2013, we
can conclude that the Company is healthy and making profits specially in 2013. However, as
Investors we can just rely on the figures presented to us by the owners of the said Company.
Proper investigation and actual verification of the Corporate transactions and operations of
LIFELINE has to be conducted in order that the interest of the prospective investors are
protected.
Considering further, that the REVENUES reported to the government do not tally with the
figures appearing in their INTERIM FINANCIAL STATEMENTS, any Prospective Investor will
wonder as to why the correct REVENUES were not reported to the government for taxation
purposes.