QUESTIONS: 9. Provide interpretation of the Horizontal and Vertical Analysis and Ratio Analysis (A). 10. From the computation (A), assuming that there is no pandemic, How do you see ABC, INC.? Is it profitable? Good for long term investment? Short term investment? Is the company still existing?
QUESTIONS: 9. Provide interpretation of the Horizontal and Vertical Analysis and Ratio Analysis (A). 10. From the computation (A), assuming that there is no pandemic, How do you see ABC, INC.? Is it profitable? Good for long term investment? Short term investment? Is the company still existing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
QUESTIONS:
9. Provide interpretation of the Horizontal and Vertical Analysis and Ratio Analysis (A).
10. From the computation (A), assuming that there is no pandemic, How do you see ABC, INC.? Is it profitable? Good for long term investment? Short term investment? Is the company still existing?
Transcribed Image Text:ABC, INC.
Condensed Balance Sheets
December 31
(In millions)
Assets
2014
2015
Current Assets
1,902.0
1,617.1
Plant Assets
2,952.8
2,526.9
Other Assets
5,513.8
742.0
Total Assets
10,368.6
4,886.0
Liabilities and Stockholders' Equity
Current liabilities
P
2,017.6
2,482.3
Long-term liabilities
7,289.5
1,506.2
Total libailities
9.497.1
3,988.5
Stockholders' equity
Common stock
195.3
205.8
Retained earnings
1,013.3
1,065.7
Treasury stock
(337.1)
(374.0)
Total stockholders' equity
871.5
897.5
Total liabilities and stockholders' equity
P 10,368.6
P 4,886.0
Transcribed Image Text:ABC, INC.
Condensed Income Statement
For the Years Ended December 31
(In millions)
2014
2015
Net sales
8,853.3
6,954.7
Cost of goods sold
4,128.5
3,327.0
Gross Profit
4,724.0
3,627.7
Selling & Admin.
3,523.6
2,551.4
Nonrecurring charges
33.3
86.5
Income from operations
1,167.9
989.8
Interest Expense
351.5
137.5
Other income
(expense), net
(12.3)
15.4
Income before taxes
804.1
867.7
Income tax expense
322.1
280.0
Net income
P 482.0
P 587.7
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education