Comparison Compare the general trends of current assets for both companies. Which company do you think is in a better position? Compare the general trends of noncurrent assets for both companies. Which company do you think is in a better position?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9E
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Comparison

  1. Compare the general trends of current assets for both companies. Which company do you think is in a better position?
  2. Compare the general trends of noncurrent assets for both companies. Which company do you think is in a better position?
ABS-CBN CORP.
GMA NETWORK INC.
CONSOLIDATED STATEMENT S OF FINANCIAL POSITION
CONSOLIDATED STATEMENT S OF FINANCIAL POSITION
currency in philippine pesos, in millions
currency in philippine pesos, in millions
2010
2009
2008
2007
2010
2009
2008
2007
ASSETS
ASSETS
Cash
74.41%
32.23%
17.64%
Cash
-43.99%
30.34%
65.55%
Receivables
12.51%
11.14%
9.43%
Short term investments
-100.00%
1019.05%
-27.59%
Inventory
Prepaid Expenses
-9.82%
-25.08%
33.08%
Receivables
7.18%
17.25%
-7.80%
-47.45%
43.36%
-34.02%
Inventory
-7.00%
31.83%
9.89%
Other Current Assets
14.47%
-7.85%
25.58%
Prepaid Expenses
19.75%
31.14%
-21.48%
TOTAL CURRENT ASSETS
29.29%
11.45%
14.01%
Other Current Assets
4.44%
-18.13%
16.49%
TOTAL CURRENT ASSETS
-6.52%
16.44%
5.72%
Property Plant and Equipment
3.27%
-0.14%
55.65%
Long-Term Investments
-30.44%
6.15%
291.23%
Property Plant and Equipment
-3.44%
0.02%
9.00%
1.96%
-1.04%
Deferred Tax Assets, Long Term
Deferred Charges, Long Term
Goodwill
Other Intangibles
49.70%
6.47%
227.11%
Long-Term Investments
16.19%
25.93%
127.10%
-45.35%
7.82%
15.02%
Deferred Tax Assets, Long Term
Other Intangibles
17.22%
0.43%
11.98%
9383.58%
36.68%
-6.77%
-5.78%
8.56%
16.28%
30.45%
Other Long-Term Assets
-36.30%
5.73%
-8.59%
Other Long-Term Assets
-4.18%
-4.79%
-46.83%
TOTAL NONCURRENT ASSETS
-4.98%
0.40%
8.06%
TOTAL NONCURRENT ASSETS
3.55%
2.70%
32.87%
TOTAL ASSETS
-5.94%
9.77%
6.68%
TOTAL ASSETS
11.89%
5.38%
26.46%
Transcribed Image Text:ABS-CBN CORP. GMA NETWORK INC. CONSOLIDATED STATEMENT S OF FINANCIAL POSITION CONSOLIDATED STATEMENT S OF FINANCIAL POSITION currency in philippine pesos, in millions currency in philippine pesos, in millions 2010 2009 2008 2007 2010 2009 2008 2007 ASSETS ASSETS Cash 74.41% 32.23% 17.64% Cash -43.99% 30.34% 65.55% Receivables 12.51% 11.14% 9.43% Short term investments -100.00% 1019.05% -27.59% Inventory Prepaid Expenses -9.82% -25.08% 33.08% Receivables 7.18% 17.25% -7.80% -47.45% 43.36% -34.02% Inventory -7.00% 31.83% 9.89% Other Current Assets 14.47% -7.85% 25.58% Prepaid Expenses 19.75% 31.14% -21.48% TOTAL CURRENT ASSETS 29.29% 11.45% 14.01% Other Current Assets 4.44% -18.13% 16.49% TOTAL CURRENT ASSETS -6.52% 16.44% 5.72% Property Plant and Equipment 3.27% -0.14% 55.65% Long-Term Investments -30.44% 6.15% 291.23% Property Plant and Equipment -3.44% 0.02% 9.00% 1.96% -1.04% Deferred Tax Assets, Long Term Deferred Charges, Long Term Goodwill Other Intangibles 49.70% 6.47% 227.11% Long-Term Investments 16.19% 25.93% 127.10% -45.35% 7.82% 15.02% Deferred Tax Assets, Long Term Other Intangibles 17.22% 0.43% 11.98% 9383.58% 36.68% -6.77% -5.78% 8.56% 16.28% 30.45% Other Long-Term Assets -36.30% 5.73% -8.59% Other Long-Term Assets -4.18% -4.79% -46.83% TOTAL NONCURRENT ASSETS -4.98% 0.40% 8.06% TOTAL NONCURRENT ASSETS 3.55% 2.70% 32.87% TOTAL ASSETS -5.94% 9.77% 6.68% TOTAL ASSETS 11.89% 5.38% 26.46%
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