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Financial Performance Analysis Report

This document contains instructions for analyzing financial statements from 201A and 201B. The tasks include: 1. Horizontal analysis of the statement of financial position, showing peso changes and percentage changes between 201A and 201B for 38 line items. 2. Vertical analysis of the 201B income statement, showing the percentage that each line item represents of total net sales. 3. Computation of 10 financial ratios using the information provided, including current ratio, acid-test ratio, profit margin, and debt ratio. Scoring is based on correctly using accounts and amounts and computing balanced final amounts.

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Ralph Louise Ponciano
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558 views3 pages

Financial Performance Analysis Report

This document contains instructions for analyzing financial statements from 201A and 201B. The tasks include: 1. Horizontal analysis of the statement of financial position, showing peso changes and percentage changes between 201A and 201B for 38 line items. 2. Vertical analysis of the 201B income statement, showing the percentage that each line item represents of total net sales. 3. Computation of 10 financial ratios using the information provided, including current ratio, acid-test ratio, profit margin, and debt ratio. Scoring is based on correctly using accounts and amounts and computing balanced final amounts.

Uploaded by

Ralph Louise Ponciano
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Horizontal Analysis
  • Vertical Analysis
  • Ratio Analysis

BM1915

Name: PONCIANO, RALPH LOUISE DATE: SCORE:

TASK
PERFORMANCE

Instructions: Analyze the following financial statements. Write your answers on the space provided.
(100 points)

I. HORIZONTAL ANALYSIS

Accomplish the comparative statement of financial position by showing the peso changes and
percentage changes for 201B as compared with 201A. (38 items x 1 point)

201B 201A Peso Change % Change


Cash P 290,000 P 150,000 P 140,000 93.33%
Marketable Securities 1,000,000 850,000 150,000 17.65%
Accounts Receivable, net 1,000,000 500,000 500,000 100%
Inventories 500,000 750,000 250,000 33.33%
Prepaid expenses 90,000 100,000 10,000 10%
Total Current Assets 2,880,000 2,350,000 530,000 22.55%

Land 700,000 500,000 200,000 40%


Building, net 500,000 550,000 50,000 9.09%
Machinery and Equipment, 1,500,000 1,700,000 200,000 11.76%
net
Total Noncurrent Assets 2,700,000 2,750,000 50,000 1.82%
Total Assets P 5,580,000 P 5,100,000 480,000 9.41%

Notes Payable, trade P 150,000 P 100,000 50,000 50%


Accounts Payable, net 635,000 610,000 25,000 4.10%
Expenses Payable 20,000 40,000 20,000 50%
Total Current liabilities 805,000 750,000 55,000 7.33%
Long-Term Notes 2,250,000 2,350,000 100,000 4.26%
Total Liabilities 3,055,000 3,100,000 45,000 1.45%
Owner’s Capital 2,525,000 2,000,000 525,000 26.25%
Total Liabilities and Equity P 5,580,000 P 5,100,000 480,000 9.41%

02 Task Performance 1 *Property of STI


Page 1 of 3
BM1915

II. VERTICAL ANALYSIS

Create a vertical analysis for the income statement for 201B given below. (12 items x 1 point)

201B Percentage
Gross Sales P 5,250,000 105%
Less: Sales Returns and 250,000 5%
Allowances
Net Sales 5,000,000 100%
Less: Cost of Goods Sold
Inventory, Dec. 31, 2018 P 750,000
Purchases 2,750,000
Inventory, Dec. 31, 2019 500,000 3,000,000 60%
Gross Profit 2,000,000 40%
Less: Selling Expenses 400,000 8%
Administrative expenses 600,000 12%
Income from operations 1,000,000 20%
Interest expense 250,000 5%
Income before taxes 750,000 15%
Income taxes 225,000 4.5%
Net Income 525,000 10.5%

02 Task Performance 1 *Property of STI


Page 2 of 3
BM1915

III. RATIO ANALYSIS

Compute for the following ratios using the financial statements above. (10 items x 5 points)

Net working capital


1.
Current ratio
2.
Acid-test ratio
3.
Profit margin
4.
Return on equity
5.
Return on assets
6.
Accounts receivable turnover
7.
Inventory turnover
8.
Debt ratio
9.
10. Debt-to-equity
Ratio Rubric for problem solving:
Performance Indicators Points
Correct accounts and amounts used 3
Computed final amounts are correct/balanced 2
Total 5

02 Task Performance 1 *Property of STI


Page 3 of 3

BM1915 02 Task Performance 1 *Property of STI Page 1 of 3 Name: PONCIANO, RALPH LOUISE DATE: SCORE:
BM1915 02 Task Performance 1 *Property of STI Page 2 of 3 II. VERTICAL ANALYSIS Create a vertical analysis for the income sta
BM1915 02 Task Performance 1 *Property of STI Page 3 of 3 III. RATIO ANALYSIS Compute for the following ratios using the fina

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