FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income statement data of PRT Company: December 31 1997 1998 Balance Sheet Accounts Cash P30,000 P52,000 Marketable Securities 170,000 200,000 100,000 200,000 Accounts Receivable, net Inventories 150,000 100,000 Machinery and Equipment, net 340,000 300,000 110,000 100,000 Land and Building, net Goodwill 80,000 80,000 Deferred Charges 20,000 18,000 Notes Payable, Trade 20,000 30,000 122,000 158,000 Accounts Payable, Trade Expenses Payable 8,000 12,000 500,000 450,000 Long-term Notes-Due 2008 15% Preferred Stock, P100 par 100,000 100,000 Common Stock, P10 par 200,000 200,000 Retained Earnings 50,000 100,000 1998 Income Statement Accounts Sales P1,050,000 Sales Returns and Allowances 50,000 100,000 Inventory, December 31, 1998 Inventory, December 31, 1997 Purchases 150,000 550,000 Selling Expenses 80,000 Administrative Expenses (including depreciation of P25,000) 120,000 50,000 Interest on Long-term Notes Income Taxes, 35% 52,500 Additional Information: 1. Dividends paid on preferred stock 15,000 2. Dividends paid on common stock 32,500 18 3. Market price per share of common stock 3. Prepare comparative common-size balance sheets as of December 31, 1997 and 1998 (Vertical Analysis).
FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income statement data of PRT Company: December 31 1997 1998 Balance Sheet Accounts Cash P30,000 P52,000 Marketable Securities 170,000 200,000 100,000 200,000 Accounts Receivable, net Inventories 150,000 100,000 Machinery and Equipment, net 340,000 300,000 110,000 100,000 Land and Building, net Goodwill 80,000 80,000 Deferred Charges 20,000 18,000 Notes Payable, Trade 20,000 30,000 122,000 158,000 Accounts Payable, Trade Expenses Payable 8,000 12,000 500,000 450,000 Long-term Notes-Due 2008 15% Preferred Stock, P100 par 100,000 100,000 Common Stock, P10 par 200,000 200,000 Retained Earnings 50,000 100,000 1998 Income Statement Accounts Sales P1,050,000 Sales Returns and Allowances 50,000 100,000 Inventory, December 31, 1998 Inventory, December 31, 1997 Purchases 150,000 550,000 Selling Expenses 80,000 Administrative Expenses (including depreciation of P25,000) 120,000 50,000 Interest on Long-term Notes Income Taxes, 35% 52,500 Additional Information: 1. Dividends paid on preferred stock 15,000 2. Dividends paid on common stock 32,500 18 3. Market price per share of common stock 3. Prepare comparative common-size balance sheets as of December 31, 1997 and 1998 (Vertical Analysis).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS
The following are the balance sheet and income statement data of PRT Company:
December 31
1997
1998
Balance Sheet Accounts
Cash
P30,000
P52,000
Marketable Securities
170,000
200,000
200,000
100,000
Accounts Receivable, net
Inventories
150,000
100,000
Machinery and Equipment, net
340,000
300,000
110,000
Land and Building, net
Goodwill
80,000
Deferred Charges
20,000
100,000
80,000
18,000
30,000
158,000
12,000
Notes Payable, Trade
20,000
122,000
Accounts Payable, Trade
Expenses Payable
8,000
500,000
450,000
Long-term Notes-Due 2008
15% Preferred Stock, P100 par
100,000
100,000
Common Stock, P10 par
200,000
200,000
Retained Earnings
50,000
100,000
1998 Income Statement Accounts
Sales
P1,050,000
50,000
Sales Returns and Allowances
100,000
Inventory, December 31, 1998
Inventory, December 31, 1997
150,000
Purchases
550,000
Selling Expenses
80,000
Administrative Expenses (including depreciation of P25,000)
120,000
Interest on Long-term Notes
50,000
Income Taxes, 35%
52,500
Additional Information:
1. Dividends paid on preferred stock
2. Dividends paid on common stock
15,000
32,500
18
3. Market price per share of common stock
3. Prepare comparative common-size balance sheets as of December 31, 1997
and 1998 (Vertical Analysis).
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