Income Statement
For the year ended 201B
Net Sales 5,000,000.00
Less: Cost of Goods Sold 3,000,000.00
Gross Profit 2,000,000.00
Less: Expenses
Selling Expenses 400,000.00
Administrative Expenses 600,000.00 1,000,000.00
Operating Profit 1,000,000.00
Less: Interest Expense 250,000.00
Income after Interest 750,000.00
Income Tax Expense 225,000.00
Net Income ₱ 525,000.00
Statement of Financial Position
201B 201A
ASSETS
Current Assets:
Cash 290,000.00 150,000.00
Marketable Securities 1,000,000.00 850,000.00
Accounts Receivable, net 1,000,000.00 500,000.00
Inventories 500,000.00 750,000.00
Prepaid Expenses 90,000.00 100,000.00
Total Current Assets 2,880,000.00 2,350,000.00
Non-Current Assets
Land 700,000.00 500,000.00
Building, net 500,000.00 550,000.00
Machinery and Equipment,net 1,500,000.00 1,700,000.00
Total Non Current Assets 2,700,000.00 2,750,000.00
TOTAL ASSETS ₱ 5,580,000.00 ₱ 5,100,000.00
LIABILITIES
Current Liabillites
Notes Payable, Trade 150,000.00 100,000.00
Accounts Payable,net 635,000.00 610,000.00
Expenses Payable 20,000.00 40,000.00
Total Current Liabilities 805,000.00 750,000.00
Non Current Liabilities
Long-Term Notes 2,250,000.00 2,500,000.00
Total Liabilities 3,055,000.00 3,250,000.00
Owner's Capital 2,525,000.00 1,850,000.00
TOTAL LIABILITIES AND CAPITAL ₱ 5,580,000.00 ₱ 5,100,000.00
Vertical Analysis- Income Statement
%of Net Sales
Net Sales 5,000,000.00 100.00%
Less: Cost of Goods Sold 3,000,000.00 60.00%
Gross Profit 2,000,000.00 40.00%
Less: Expenses
Selling Expenses 400,000.00 8.00%
Administrative Expenses 600,000.00 12.00%
Operating Profit 1,000,000.00 20.00%
Less: Interest Expense 250,000.00 5.00%
Income after Interest 750,000.00 15.00%
Income Tax Expense 225,000.00 4.50%
Net Income 525,000.00 10.50%
Horizontal Analysis - Statement of Financial Position
Peso Percentage
201B 201A
Changes Change
ASSETS
Current Assets:
Cash 290,000.00 150,000.00 140,000.00 93.33%
Marketable Securities 1,000,000.00 850,000.00 150,000.00 17.65%
Accounts Receivable, net 1,000,000.00 500,000.00 500,000.00 100.00%
Inventories 500,000.00 750,000.00 - 250,000.00 -33.33%
Prepaid Expenses 90,000.00 100,000.00 - 10,000.00 -10.00%
Total Current Assets 2,880,000.00 2,350,000.00 530,000.00 22.55%
Non-Current Assets
Land 700,000.00 500,000.00 200,000.00 40.00%
Building, net 500,000.00 550,000.00 - 50,000.00 -9.09%
Machinery and Equipment,net 1,500,000.00 1,700,000.00 - 200,000.00 -11.76%
Total Non Current Assets 2,700,000.00 2,750,000.00 - 50,000.00 -1.82%
TOTAL ASSETS ₱ 5,580,000.00 ₱ 5,100,000.00 480,000.00 9.41%
LIABILITIES
Current Liabillites
Notes Payable, Trade 150,000.00 100,000.00 50,000.00 50.00%
Accounts Payable,net 635,000.00 610,000.00 25,000.00 4.10%
Expenses Payable 20,000.00 40,000.00 - 20,000.00 -50.00%
Total Current Liabilities 805,000.00 750,000.00 55,000.00 7.33%
Non Current Liabilities
Long-Term Notes 2,250,000.00 2,500,000.00 - 250,000.00 -10.00%
Total Liabilities 3,055,000.00 3,250,000.00 - 195,000.00 -6.00%
Owner's Capital 2,525,000.00 1,850,000.00 675,000.00 36.49%
TOTAL LIABILITIES AND CAPITAL ₱ 5,580,000.00 ₱ 5,100,000.00 480,000.00 9.41%
