Problem 2. The three-year comparative financial statements of Bataan Corporation follow: 2017 2018 2019 Assets Cash 100,000 120,000 130,000 Receivables 120,000 140,000 80,000 Trading Securities 50,000 50,000 80,000 Inventories 170,000 180,000 160,000 Other Current Assets 25,000 20,000 20,000 Total Current AssetS 465,000 510,000 470,000 Property, Plant and Equipment 300,000 320,000 400,000 Total Assets 765,000 830,000 870,000 Liabilities and Equity Accounts Payable Accrued expenses 220,000 240,000 200,000 120,000 70,000 120,000 Total Current Liabilities 340,000 310,000 320,000 Non-current liabilities 100,000 100,000 150,000 Total Liabilities 440,000 410,000 470,000 Common Stock (P10 par) 100,000 100,000 100,000 Retained Earnings Total Liabilities and Equity 225,000 320,000 300,000 765,000 830,000 870,000 Sales 1,200,000 1,440,000 1,584,000 Cost of Sales 800,000 1,040,000 1,144,000 Gross Profit 400,000 400,000 440,000 Operating Expenses 150,000 120,000 140,000 Operating Income 250,000 280,000 300,000 Interest Expense 12,000 18,000 12,000 238,000 Income before taxes 268,000 282,000 Taxes (30%) 71,400 166,600 80,400 84,600 Net Income 187,600 197,400 Required: Construct the company's common size financial statements using vertical analysis for year 2017, 2018 and 2019 in a comparative report.
Problem 2. The three-year comparative financial statements of Bataan Corporation follow: 2017 2018 2019 Assets Cash 100,000 120,000 130,000 Receivables 120,000 140,000 80,000 Trading Securities 50,000 50,000 80,000 Inventories 170,000 180,000 160,000 Other Current Assets 25,000 20,000 20,000 Total Current AssetS 465,000 510,000 470,000 Property, Plant and Equipment 300,000 320,000 400,000 Total Assets 765,000 830,000 870,000 Liabilities and Equity Accounts Payable Accrued expenses 220,000 240,000 200,000 120,000 70,000 120,000 Total Current Liabilities 340,000 310,000 320,000 Non-current liabilities 100,000 100,000 150,000 Total Liabilities 440,000 410,000 470,000 Common Stock (P10 par) 100,000 100,000 100,000 Retained Earnings Total Liabilities and Equity 225,000 320,000 300,000 765,000 830,000 870,000 Sales 1,200,000 1,440,000 1,584,000 Cost of Sales 800,000 1,040,000 1,144,000 Gross Profit 400,000 400,000 440,000 Operating Expenses 150,000 120,000 140,000 Operating Income 250,000 280,000 300,000 Interest Expense 12,000 18,000 12,000 238,000 Income before taxes 268,000 282,000 Taxes (30%) 71,400 166,600 80,400 84,600 Net Income 187,600 197,400 Required: Construct the company's common size financial statements using vertical analysis for year 2017, 2018 and 2019 in a comparative report.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 2. The three-year comparative financial statements of Bataan Corporation follow:
2017
2018
2019
Assets
Cash
100,000
120,000
130,000
Receivables
120,000
140,000
80,000
Trading Securities
50,000
50,000
80,000
Inventories
170,000
180,000
160,000
Other Current Assets
25,000
20,000
20,000
Total Current AssetS
465,000
510,000
470,000
Property, Plant and Equipment
300,000
320,000
830,000
400,000
Total Assets
765,000
870,000
Liabilities and Equity
Accounts Payable
Accrued expenses
220,000
240,000
200,000
120,000
70,000
120,000
Total Current Liabilities
340,000
310,000
320,000
Non-current liabilities
100,000
100,000
150,000
Total Liabilities
440,000
410,000
470,000
Common Stock (P10 par)
100,000
100,000
100,000
Retained Earnings
Total Liabilities and Equity
225,000
320,000
300,000
765,000
830,000
870,000
Sales
1,200,000
1,440,000
1,584,000
Cost of Sales
800,000
1,040,000
1,144,000
Gross Profit
400,000
400,000
440,000
Operating Expenses
Operating Income
Interest Expense
150,000
120,000
140,000
250,000
280,000
300,000
12,000
12,000
18,000
Income before taxes
238,000
268,000
282,000
Taxes (30%)
80,400
71,400
166,600
84,600
197,400
Net Income
187,600
Required: Construct the company's common size financial statements using vertical analysis
for year 2017, 2018 and 2019 in a comparative report.
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