De La Salle University-Manila

Ramon V. Del Rosario College of

Business
Accountancy Department

BUSINESS CASE

In partial fulfillment of the course requirements

in Basic Accounting 2

Submitted to:
Mr. Francis Villamin

Submitted By:
Cruz, Randell
Manlulo, Jammi
Salamat, Coleen
Yao, Charmaine Michelle O. (Leader)
K47

a. What is the name of the corporation? What is the nature of their business?
The name of the corporation is Centro Escolar University (CEU). CEU is
an educational institution.
b. Who are the members of the Board of Directors? Who is the chairman of the
board?
1. Emilio C. Yap- Chairman of the Board
2 .Ma. Cristina D. Padolina
3. Angel C. Alcala
4. Emil Q. Javier
5. Ricardo F. de Leon
6. Alejandro C. Dizon
7. Emilio C. Yap III
8. Corazon M. Tiongco
9. Johnny C. Yap

c. Who is the president of the corporation?

Dr. Ma. Cristina D. Padolina from 2006 to present.

d. What types of stock are they authorized to issue? How many are the authorized
shares? How much are their par values? How many shares are issued? How
many shares are subscribed?
CEU is authorized to issue 800,000,000 capital stock with P1.00 par value
and 372,414,400 issued and outstanding.

e. Do they have treasury shares? How many shares are there in the treasury?
How much is the cost per share? What method of recording treasury stock do
they follow?
CEU does not acquire treasury shares.

f. How much is their total retained earnings? How much is free? How much is
appropriated? What kind of appropriations did they make?
CEU has a total of P 722,872,200.00 on retained earnings, P
450,000,000.00 appropriated for capital expenditures for the fiscal year April
2013 to March 2014, the planned construction of a 3-storey building for the
proposed setting up of a pre-school, elementary and high school in preparation
for the K-12 program and to support the proposed five-year development plan for
Malolos campus. and P 372,414,400.00 unappropriated.

g. Did they declare cash dividends during the year? If yes, how much?
Cash dividend of 0.35 per share was declared on June 28, 2013 in favor
of stockholders of record as of July 17, 2013, payable on August 8, 2013; and
0.25 per share was declared on October 25, 2013 in favor of stockholders of
record as of November 19, 2013, payable on December 12, 2013.

h. Do they have any stock dividends distributable as of balance sheet date? If yes, how
many shares are to be issued and when are these to be distributed?
CEU does not distribute stock dividends.

i. How much is net income or net loss during the year?

CEU incurred 301,429,042.00 net income for the year 2014.

j. Does their Statement of Changes in Equity follow the format given in class? If yes,
what column headings do they have? What amounts did they include under each
column heading? If the company did not follow the format given in class, what format
do they have?
CEUs Statement of Changes in Equity has the same format given in
class. CEU has Capital stock with P1 par value that consists of 800,000,000 authorized
shares and 372,414,400 issued and outstanding shares with additional paid-in capital
P664, 056. In terms of retained earnings, appropriated retained earnings is
P450,000,000 and unaappropriated is P322,872,200. is P106,413,906. Revaluation
increment on land is P1,284,586,773. And lastly, the revaluation reserve on availablefor-sale financial assets is P209,594. The difference from the format given in the class
and CEUs are the remeasurement loss on retirement plan, revaluation increment on
land and revaluation reserve on available-for-sale financial assets.

k. In their notes to financial statements, does it include any disclosure on corporate

social responsibility such as employee benefits, environmental and community
concerns?
For employee benefits it consists of SSS contributions and other

employee benefits amounting P346,398,170.00 and retirement plan for permanent

employee benefits P28,976,951.00. Environmental concern is not applicable however,
the community outreach programs together with conducting review classes,
professional and continuing education trainings and donations fall under miscellaneous
expenses amounting P6,420,956.00.

l. What conclusions can you derive from this simple research?

To sum it all up, our group thinks that we should not invest to their stock since
cash dividend is only P0.35 it is not even half of the P1 PAR value. However, since it is
a learning institution large amount of funds are needed to be appropriated for the
improvement of their institution.