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Account Cash Equipment Accumulated Depreciation Total Assets Liabilities Income Tax Payable Percentage Tax Payable Assets Total Liabilities Equity Capital Ending Total Equity Total Liabilities and Equity The Adoption of NWORLD Products as Distributors Statement of Financial Position For the Year Ended December 31, 2022-2026 2023 2024 2025 2026 119,149.42 161,821.39 204,750.40 248,334.88 35,000 35,000 35,000 35,000 -14,000 -21,000 -28,000 -35,000 140,149.42 175,821.39 211,750.40 248,334.88 3,021.47 2,934.84 2,987.68 3,042.11 258.63 799.18 823.15 847.85 3,280.10 3,734.02 3,810.83 3,889.96 136,869.31 172,087.36 207,939.55 244,444.91 136,869.31 172,087.36 207,939.55 244,444.91 140,149.41 175,821.38 211,750.38 248,334.87 2022 75,830,42 35,000 -7,000 103,830.42 2,967.64 251.1 3,218.74 100,611.68 100,611.68 103,830,42 Vertical Analysis Average 161,977.30 35,000.00 -21,000.00 175,977.30 2,990.75 595.98 3,586.73 172,390.56 172,390.56 175,977.29 Percentage (%) 100% 100%

Account Cash Equipment Accumulated Depreciation Total Assets Liabilities Income Tax Payable Percentage Tax Payable Assets Total Liabilities Equity Capital Ending Total Equity Total Liabilities and Equity The Adoption of NWORLD Products as Distributors Statement of Financial Position For the Year Ended December 31, 2022-2026 2023 2024 2025 2026 119,149.42 161,821.39 204,750.40 248,334.88 35,000 35,000 35,000 35,000 -14,000 -21,000 -28,000 -35,000 140,149.42 175,821.39 211,750.40 248,334.88 3,021.47 2,934.84 2,987.68 3,042.11 258.63 799.18 823.15 847.85 3,280.10 3,734.02 3,810.83 3,889.96 136,869.31 172,087.36 207,939.55 244,444.91 136,869.31 172,087.36 207,939.55 244,444.91 140,149.41 175,821.38 211,750.38 248,334.87 2022 75,830,42 35,000 -7,000 103,830.42 2,967.64 251.1 3,218.74 100,611.68 100,611.68 103,830,42 Vertical Analysis Average 161,977.30 35,000.00 -21,000.00 175,977.30 2,990.75 595.98 3,586.73 172,390.56 172,390.56 175,977.29 Percentage (%) 100% 100%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required: • Vertical analysis • Descriptive Analysi
Account Cash Equipment Accumulated Depreciation Total Assets Liabilities Income Tax Payable Percentage Tax Payable Assets Total Liabilities Equity Capital Ending Total Equity otal Liabilities and Equity The Adoption of NWORLD Products as Distributors Statement of Financial Position For the Year Ended December 31, 2022- 2026 2022 2023 2024 2025 2026 75,830.42 119,149.42 161,821.39 204,750.40 248,334.88 35,000 35,000 35,000 35,000 35,000 -7,000 -14,000 -21,000 -28,000 -35,000 103,830.42 140,149.42 175,821.39 211,750.40 248,334.88 2,967.64 3,021.47 2,934.84 2,987.68 3,042.11 251.1 258.63 799.18 823.15 847,85 3,218.74 3,280.10 3,734.02 3,810.83 3,889.96 100,611.68 136,869.31 172,087.36 207,939.55 244,444.91 100,611.68 136,869.31 172,087.36 207,939.55 244,444.91 103,830,42 140,149.41 175,821.38 211,750.38 248,334.87 Vertical Analysis Average Percentage (%) 161,977.30 35,000.00 -21,000.00 175,977.30 100% 2,990.75 595.98 3,586.73 172,390.56 172,390.56 175,977.29 100%
Transcribed Image Text:Account Cash Equipment Accumulated Depreciation Total Assets Liabilities Income Tax Payable Percentage Tax Payable Assets Total Liabilities Equity Capital Ending Total Equity otal Liabilities and Equity The Adoption of NWORLD Products as Distributors Statement of Financial Position For the Year Ended December 31, 2022- 2026 2022 2023 2024 2025 2026 75,830.42 119,149.42 161,821.39 204,750.40 248,334.88 35,000 35,000 35,000 35,000 35,000 -7,000 -14,000 -21,000 -28,000 -35,000 103,830.42 140,149.42 175,821.39 211,750.40 248,334.88 2,967.64 3,021.47 2,934.84 2,987.68 3,042.11 251.1 258.63 799.18 823.15 847,85 3,218.74 3,280.10 3,734.02 3,810.83 3,889.96 100,611.68 136,869.31 172,087.36 207,939.55 244,444.91 100,611.68 136,869.31 172,087.36 207,939.55 244,444.91 103,830,42 140,149.41 175,821.38 211,750.38 248,334.87 Vertical Analysis Average Percentage (%) 161,977.30 35,000.00 -21,000.00 175,977.30 100% 2,990.75 595.98 3,586.73 172,390.56 172,390.56 175,977.29 100%
LDR Department Store Condensed Balance Sheets December 31 2016 Amount Percent Amount Percent ASSETS Current Assets P 1,020,000 55.59% P 945,000 59.25% Fixed Assets (net) 800,000 43.60% 632,500 39.66% Intangible Assets 15,000 0.82% 17,500 1.10% Total Assets P 1,835,000 100.00% P1,595,000 100.00% LIABILITIES Current Liabilities P 344,500 18.77% P 303,000 19.00% Long-term Liabilities 487,500 26.57% 497,000 31.16% Total Liabilities P 832,000 45.34% P 800,000 50.16% STOCKHOLDERS' EQUITY Common stock, P1 par P 275,400 15.01% 16.93% P 270,000 525,000 Retained E 32.92% 121,000 holders' equity P 1,003,000 P 795 49.84 54.66% 100.00% Total Liabilities and Equity P 1,835,000 P 1,595,000 Vertical analysis shows the relative size of each category in the balance sheet. It also can show the percentage change in the individual asset, liability, and stockholders' equity items. For example, the current assets decreased from 59.25% of total assets in 2015 to 55.59% in 2016 (even though the absolute peso amount increased P75,000 in that time). Fixed assets (net) have increased from 39.66% to 43.60% of total assets. Retained earnings have increased from 32.92% to 39.65% of total liabilities and stockholders' equity. These results reinforce the earlier observations that LDR Department Store is choosing to finance its growth through retention of earnings rather tha through issuing additional debt. Descriptive Analysis 2015
Transcribed Image Text:LDR Department Store Condensed Balance Sheets December 31 2016 Amount Percent Amount Percent ASSETS Current Assets P 1,020,000 55.59% P 945,000 59.25% Fixed Assets (net) 800,000 43.60% 632,500 39.66% Intangible Assets 15,000 0.82% 17,500 1.10% Total Assets P 1,835,000 100.00% P1,595,000 100.00% LIABILITIES Current Liabilities P 344,500 18.77% P 303,000 19.00% Long-term Liabilities 487,500 26.57% 497,000 31.16% Total Liabilities P 832,000 45.34% P 800,000 50.16% STOCKHOLDERS' EQUITY Common stock, P1 par P 275,400 15.01% 16.93% P 270,000 525,000 Retained E 32.92% 121,000 holders' equity P 1,003,000 P 795 49.84 54.66% 100.00% Total Liabilities and Equity P 1,835,000 P 1,595,000 Vertical analysis shows the relative size of each category in the balance sheet. It also can show the percentage change in the individual asset, liability, and stockholders' equity items. For example, the current assets decreased from 59.25% of total assets in 2015 to 55.59% in 2016 (even though the absolute peso amount increased P75,000 in that time). Fixed assets (net) have increased from 39.66% to 43.60% of total assets. Retained earnings have increased from 32.92% to 39.65% of total liabilities and stockholders' equity. These results reinforce the earlier observations that LDR Department Store is choosing to finance its growth through retention of earnings rather tha through issuing additional debt. Descriptive Analysis 2015
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