II. Direction: Solve the following problems using horizontal and vertical analysis. Write the answer onthe second column. Determine the technique used in solving the problem whether horizontal, orvertical or mixed. Write the answer on the third column. Show solutions in a separate sheet ofраper.What techniqueis usedProblemAnswer1. A company has a total liabilities of P65,000 and owner'sequity of P35,000. What is the percentage of equity tototal assets?2. The total owner's equity for 2018 is P175,000 and for 2019 isP235,500, what is the percentage of increase ordecrease of owner's equity?3. If the current assets are P75,000 and the total assets areP300,000, what is the percentage of noncurrent assets?4. Long-term liabilities are P150,000 which is equivalent to50% of the total liabilities, the owners equity is 40% of thetotal assets, how much would be the total assets?5. The total sales this year is P1,200,000, which resulted froman increase in sales for 10%. How much was the sales forlast year?6. The total current asset is 45%, total liability is 60%, totalequity is P300,000. How much is the total noncurrentassets?7. The Gross Profit is 40%, total sales is P625,000. Thecompany incurred an operating expense of 20%,assuming that there is no non-operating items wereincurred, how much would be the net profit?128. The net profit this year is decreased by 10% due to thepandemic. How much was the net profit last year if thecompany reported a net profit of P90,000 this year?9. If the current assets are 62.5% , the total assets areP600,000, owner's equity is twice the total liabilities, howmuch is the total owner's equity?10. The total sales for this year is P5,000,000, cost of sales if30%, operating expense is 20%, net profit before tax is40%, how much is the non-operating items?

Vertical Analysis: It is a financial statement analysis that considers each and every amount of…

Answered: II. Direction: Solve the following…

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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The following lettered items represent a classification scheme for a balance sheet, and the numbered items represent data found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs. А. Current assets В. Investments C. Property, plant, and equipment D. Intangible assets Е. Current liabilities F. Long-term liabilities G. Stockholders' equity Н. Not on the balance sheet
3. Companies typically provide four basic financial statements: the fixed income statement, +the current income statement, the balance sheet, and the cash flow statement. a. True b. False If your answer is false, what is the correct answer: I
Create the financial statement ( Income statement and Balance sheet ) for NetSolutions using the Summary transaction.
what is Statement of Financial Position? prepare chart of accounts by completing the box below. Chart of Accounts Codes Account titles Account Type Statement of Financial Position/Statement of Comprehensive Income Cash Asset Prepaid Rent Asset Revenue Equity Account Codes: Assets 100-199 Liabilities 200-299 Equity 300-399 Revenues 400-499 Expenses 500-599
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Directions: Using terms from the following list, complete the sentences below. Write the letter of the term you have chosen in the space provided. A. accounting system B. business entity C. capital D. corporation E. entrepreneur E. financial accounting K. management G. accounting period н. GAAP L going concern J. loss N. partnership O. profit accounting L. manufacturing P. service business business Q. sole proprietorship M. merchandising business 0. A(n) 1. The time period covered by an accounting report is called 2. An)- 3. Money invested in a business by an owner is called . 4. The amount of money earned over and above the amount spent to keep a business operating is called- 5. Businesses that spend more than they receive operate at a 6. Ain) is concerned with the process of recording and reporting financial information. 7. A(n) is willing to take the risks of running a business. 8.- external users. has one owner. has at least two owners. is a type of accounting that focuses on…
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Do not give answer in image
7,8,9,10
Please categorize all
A1) For a given financial institution, its Income Gap and its Duration Gap always have the opposite sign. True or False A2) Duration Gap helps find the change in a______, whereas Income Gap analysis finds the change in b______. a. expense on liability, b. income from asset b. net worth, b. asset value c. net worth, b. income from assets d. asset value, b. liability value A3) In an interest rate swap, a RSA- financial institution such as the Friendly Finance Company would swap away _a___ in favour of _b___ in a contract. (RSA:r ate sensitive assets, FRA: fixed rate assets) A . RSA, b. FRA B . FRA, b. FRA C . RSA, b. RSA D . FRA. b. RSA A4)An interest rate swap designed to reduce the level of bank interest rate risks also guarantees profits at the same time. True or False A5)An interest rate swap designed to reduce the level of bank interest rate risks involves swapping A)only the underlying principal B)both the income flow and the principal C)none D)only the flow of income on an…
Harrigan Service Company, Inc., was incorporated by lan Harrigan and five other managers. The following activities occurred during the year: 1. Received $71,400 cash from the managers; each was issued 1,190 shares. 2. Purchased equipment for use in the business at a cost of $50,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). 3. Signed an agreement with a cleaning service to pay it $690 per week for cleaning the corporate offices, beginning next week. 4. Ian Harrigan borrowed $19,500 for personal use from a local bank, signing a one-year note.

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