20-PY Balance Sheet Accounts (Dec. 31) Cash 20-CY Income Statement Accounts (Dec. 31) 283,000 150,000 Sales Marketable Securities 1,000,000 850,000 Sales Returns and Allowances Accounts Receivable, net 1,000,000 500,000 Inventory, Dec. 31, 20-CY Inventory, Dec. 31, 20-PY nventories 500,000 750,000 Land Building, net Machinery and Equipment, net 500,000 500,000 Purchases 500,000 550,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 1,500,000 1,700,000 Soodwill 400,000 400,000 Other Assets lotes Payable, Trade CCounts Payable, net Expenses Payable Long-term Notes 5% Preferred Stock, P100 par 90,000 100,000 150,000 100,000 790,000 610,000 40,000 60,000 2,250,000 2,500,000 500,000 500,000 1,500,000 Common Stock, P10 par Retained Earnings 1,500,000 523,000 250,000 ditional Information: There are only 300 business days during the year. Income Taxes, 30% equired: Prepare a comparative Balance Sheet for 20-PY and 20-CY and an Income Statement. Perform a horizontal analysis for the comparative balance sheet showing the peso and percentage changes of each iten Perform a vertical analysis showing the ratio of each item of the income statement to Sales and each item of the compar Total Assets, Total Liabilities, and Stockholders' Equity. Perform a ratio analysis using the items from the comparative balance sheet and income statements to evaluate the f
20-PY Balance Sheet Accounts (Dec. 31) Cash 20-CY Income Statement Accounts (Dec. 31) 283,000 150,000 Sales Marketable Securities 1,000,000 850,000 Sales Returns and Allowances Accounts Receivable, net 1,000,000 500,000 Inventory, Dec. 31, 20-CY Inventory, Dec. 31, 20-PY nventories 500,000 750,000 Land Building, net Machinery and Equipment, net 500,000 500,000 Purchases 500,000 550,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 1,500,000 1,700,000 Soodwill 400,000 400,000 Other Assets lotes Payable, Trade CCounts Payable, net Expenses Payable Long-term Notes 5% Preferred Stock, P100 par 90,000 100,000 150,000 100,000 790,000 610,000 40,000 60,000 2,250,000 2,500,000 500,000 500,000 1,500,000 Common Stock, P10 par Retained Earnings 1,500,000 523,000 250,000 ditional Information: There are only 300 business days during the year. Income Taxes, 30% equired: Prepare a comparative Balance Sheet for 20-PY and 20-CY and an Income Statement. Perform a horizontal analysis for the comparative balance sheet showing the peso and percentage changes of each iten Perform a vertical analysis showing the ratio of each item of the income statement to Sales and each item of the compar Total Assets, Total Liabilities, and Stockholders' Equity. Perform a ratio analysis using the items from the comparative balance sheet and income statements to evaluate the f
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Below is the information obtained from the financial statements of MAC TRADING COMPANY for the year ended December 31 of the current year.
Balance Sheet Accounts (Dec. 31)
20-CY
Income Statement Accounts (Dec. 31)
20-CY
20-PY
Cash
283,000
150,000
Sales
5,250,000
Marketable Securities
850,000
250,000
1,000,000
1,000,000
Sales Returns and Allowances
500,000
750,000
Inventory, Dec. 31, 20-CY
Inventory, Dec. 31, 20-PY
500,000
750,000
Accounts Receivable, net
Inventories
500,000
Land
500,000
500,000
Purchases
2,750,000
550,000
400,000
Building, net
Machinery and Equipment, net
500,000
Selling Expenses
1,500,000
1,700,000
Administrative Expenses
Goodwill
400,000
400,000
600,000
(including Depreciation of P250,000)
Interest on Long-term Notes
Other Assets
90,000
100,000
250,000
100,000
Notes Payable, Trade
Accounts Payable, net
Expenses Payable
Long-term Notes
15% Preferred Stock, P100 par
Common Stock, P10 par
Retained Earnings
150,000
790,000
610,000
40,000
60,000
2,250,000
2,500,000
500,000
500,000
1,500,000
1,500,000
523,000
250,000
Additional Information:
There are only 300 business days during the year.
Income Taxes, 30%
Required:
1. Prepare a comparative Balance Sheet for 20-PY and 20-CY and an Income Statement.
2. Perform a horizontal analysis for the comparative balance sheet showing the peso and percentage changes of each item.
3. Perform a vertical analysis showing the ratio of each item of the income statement to Sales and each item of the comparative balance sheet to
Total Assets, Total Liabilities, and Stockholders' Equity.
4. Perform a ratio analysis using the items from the comparative balance sheet and income statements to evaluate the firm's activity, liquidity,
solvency, and profitability for the current year.
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