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ABC Corp 2025 Income Statement & Analysis

ABC Corp's income statement for 2025 shows total revenues of 15 million pesos, with a net income after tax of 3.375 million pesos. The company employs various capital budgeting techniques, including payback period and net present value, to evaluate long-term projects, with a calculated internal rate of return of 80%. Financial ratios indicate a gross profit margin of 50% and a net profit margin of 23%.

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8 views8 pages

ABC Corp 2025 Income Statement & Analysis

ABC Corp's income statement for 2025 shows total revenues of 15 million pesos, with a net income after tax of 3.375 million pesos. The company employs various capital budgeting techniques, including payback period and net present value, to evaluate long-term projects, with a calculated internal rate of return of 80%. Financial ratios indicate a gross profit margin of 50% and a net profit margin of 23%.

Uploaded by

mikasaxchann
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ABC CORP

INCOME STATEMENT
FOR THE YEAR ENDING 2025
(IN PESOS)
2025

REVENUES 15,000,000

COST OF REVENUES 50% 7,500,000

GROSS PROFIT 7,500,000

OPERATING EXPENSES
(INCLUDING P500,000 DEP) 3,000,000

OPERATING INCOME 4,500,000

LESS: TAX 25% 1,125,000

NET INCOME AFTER TAX 3,375,000

FINANCIAL SUMMARY
REVENUES 15,000,000

GROSS PROFIT 7,500,000

NET INCOME 3,375,000

FINANCIAL INDICES
2025
CURRENT RATIO CA/CL

AVE. COLLECTION PERIOD

AGE AGE OF INVENTORY

DEBT TO ASSET RATIO TL/TA

TOTAL ASSET TURNOVER S/TA

DEBT TO EQUITY TL/TSE

GROSS PROFIT MARGIN 50%


OPERATING PROFIT MARGIN 30%

NET PROFIT MARGIN 23%

RETURN ON ASSETS

RETURN ON EQUITY

CAPITAL BUDGETING TECHNIQUE- METHOD USED IN EVALUATING LONG TERM PRO

PAYBACK
NET PRESENT VALUE
PROFITABILITY
INTERNAL RATE OF RETURN

STEPS
1. CONSIDER YOUR ANNUAL CASH FLOW

NET INCOME + ANNUAL DEPRECIATION

2025

NET INCOME 3,375,000


ANNUAL DEPRECIATION 500,000
ANNUAL CASH FLOW 3,875,000

2. USE THE CAPITAL BUDGETING TECHNIQUE


assume project cost at P5M
PAYBACK INVESTMENT OR PROJECT COST - ANNUAL CASH

5000000-3875000-4250000-4625000-500000-53

5000000-3875000
0.264706 1125000-4250000(11250000)

NET PRESENT VALUE


DISCOUNT RATE 10%
ACF
2025 3,875,000
2026 4,250,000
2027 4,625,000
2028 5,000,000
2029 5,375,000

LESS: INVESTMENT

NPV

accept the project

PROFITABILITY INDEX (PI) TOTAL DISCOUNTED CASH FLOW

=14689299/5000000

2.93785974629

INTERNAL RATE OF RETURN

- 5,000,000
2025 3,875,000
2026 4,250,000
2027 4,625,000
2028 5,000,000
2029 5,375,000

=IRR(I117:I122)
80%
ACCEPT THE PROJECT
2026 2027 2028 2029

16,000,000 17,000,000 18,000,000 19,000,000

8,000,000 8,500,000 9,000,000 9,500,000

8,000,000 8,500,000 9,000,000 9,500,000

3,000,000 3,000,000 3,000,000 3,000,000

5,000,000 5,500,000 6,000,000 6,500,000

1,250,000 1,375,000 1,500,000 1,625,000

3,750,000 4,125,000 4,500,000 4,875,000

16,000,000 17,000,000 18,000,000 19,000,000

8,000,000 8,500,000 9,000,000 9,500,000

3,750,000 4,125,000 4,500,000 4,875,000

2026 2027 2028 2029

50% 50% 50% 50%


31% 32% 33% 34%

23% 24% 25% 26%

VALUATING LONG TERM PROJECT VIABILITY

2026 2027 2028 2029

3,750,000 4,125,000 4,500,000 4,875,000


500,000 500,000 500,000 500,000
4,250,000 4,625,000 5,000,000 5,375,000

OJECT COST - ANNUAL CASH FLOWS

250000-4625000-500000-5375000

1125000 1ST YEAR


1125000 .26 yrs

1.26years
DISCOUNT DISCOUNTED CASH FLOWS
=+I91/1.1^1 3,522,727
=+I91/1.1^2 3,202,479
=+I91/1.1^3 2,911,345
=+I91/1.1^4 2,646,677
=+I91/1.1^5 2,406,070

TOTAL 14,689,299

: INVESTMENT - 5,000,000

9,689,299

pt the project

AL DISCOUNTED CASH FLOWS / INVESTMENT

89299/5000000

greater than 1

accept the project

INVESTMENT

EPT THE PROJECT


PROJECT COST

PRE-OPERATING COSTS

CAPITAL EXPENDITURES
INITIAL WORKING CAPITAL
CONTINGENCY
TOTAL PROJECT COST
###

###
###
466,667
###

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