Sunshine Marketing Comparative Statement of Financial Position For the years 2018 and 2019 2018 2019 Current Assets P235,374 P361,312 Property, Plant & Equipment, net 962,508 899,300 Other Assets 188,918 236,788 Total Assets P1,386,800 P1,497,400 Total Current liabilities P220,590 P258,902 Long-term Debt Owner's Capital Total Liabilities & Equity 498,998 473,500 667,212 P1,386,800 764,998 P1,497,400 Sunshine Marketing Comparative Statement of Financial Position For the years 2018 and 2019 2018 2019 Revenue P1,875,000 P2,368,900 Cost of Goods sold 1,098,000 777,000 1,468,718 Gross profit Selling& Administrative Expense Other Expenses 900,182 467,875 25,500 595,000 25,500 Net Income P283,625 P279,682
Sunshine Marketing Comparative Statement of Financial Position For the years 2018 and 2019 2018 2019 Current Assets P235,374 P361,312 Property, Plant & Equipment, net 962,508 899,300 Other Assets 188,918 236,788 Total Assets P1,386,800 P1,497,400 Total Current liabilities P220,590 P258,902 Long-term Debt Owner's Capital Total Liabilities & Equity 498,998 473,500 667,212 P1,386,800 764,998 P1,497,400 Sunshine Marketing Comparative Statement of Financial Position For the years 2018 and 2019 2018 2019 Revenue P1,875,000 P2,368,900 Cost of Goods sold 1,098,000 777,000 1,468,718 Gross profit Selling& Administrative Expense Other Expenses 900,182 467,875 25,500 595,000 25,500 Net Income P283,625 P279,682
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![IV. Direction: Perform a vertical and horizontal analysis and interpret the result.
The owner of Sunshine Marketing asked your help to analyze and interpret its financial statement
using vertical and horizontal approach. The following comparative statements were provided. Use
the answer sheet format provided below and answer the questions asked.
Sunshine Marketing
Comparative Statement of Financial Position
For the years 2018 and 2019
2018
2019
Current Assets
P235,374
P361,312
899,300
236,788
Property, Plant & Equipment, net
962,508
Other Assets
188,918
P1,386,800
Total Assets
P1,497,400
Total Current liabilities
P220,590
P258,902
Long-term Debt
Owner's Capital
498,998
473,500
667,212
P1,386,800
764,998
Total Liabilities & Equity
P1,497,400
Sunshine Marketing
Comparative Statement of Financial Position
For the years 2018 and 2019
2018
2019
Revenue
P1,875,000
P2,368,900
Cost of Goods sold
Gross profit
Selling& Administrative Expense
Other Expenses
1,098,000
1,468,718
900,182
777,000
467,875
595,000
25,500
P279,682
25,500
Net Income
P283,625
ANSWER SHEET:
Vertical
Approach
Horizontal Approach
Percentage of
Increase
Peso Value
Increase
Statement of Financial Position
2018
2019
(Decrease)
(Decrease)
Current Assets
Property, Plant & Equipment, net
Other Assets
Total Assets
Total Current liabilities
Long-term Debt
Owner's Capital
Total Liabilities & Equity
14](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a667a4a-f8e8-418c-944b-a8ada0391e26%2F78016c69-2bac-4224-af18-f42a005af401%2Fajwkdbu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:IV. Direction: Perform a vertical and horizontal analysis and interpret the result.
The owner of Sunshine Marketing asked your help to analyze and interpret its financial statement
using vertical and horizontal approach. The following comparative statements were provided. Use
the answer sheet format provided below and answer the questions asked.
Sunshine Marketing
Comparative Statement of Financial Position
For the years 2018 and 2019
2018
2019
Current Assets
P235,374
P361,312
899,300
236,788
Property, Plant & Equipment, net
962,508
Other Assets
188,918
P1,386,800
Total Assets
P1,497,400
Total Current liabilities
P220,590
P258,902
Long-term Debt
Owner's Capital
498,998
473,500
667,212
P1,386,800
764,998
Total Liabilities & Equity
P1,497,400
Sunshine Marketing
Comparative Statement of Financial Position
For the years 2018 and 2019
2018
2019
Revenue
P1,875,000
P2,368,900
Cost of Goods sold
Gross profit
Selling& Administrative Expense
Other Expenses
1,098,000
1,468,718
900,182
777,000
467,875
595,000
25,500
P279,682
25,500
Net Income
P283,625
ANSWER SHEET:
Vertical
Approach
Horizontal Approach
Percentage of
Increase
Peso Value
Increase
Statement of Financial Position
2018
2019
(Decrease)
(Decrease)
Current Assets
Property, Plant & Equipment, net
Other Assets
Total Assets
Total Current liabilities
Long-term Debt
Owner's Capital
Total Liabilities & Equity
14
![Income Statement
Revenue
Cost of Goods sold
Gross profit
Selling& Administrative Expense
Other Expenses
Net Income
Questions:
1. What would be the cause of changes in owner's equity?
2. How come that the net income was decreased in peso amount while its sales increases? What
are the possible factors that affect the choanges in the net income?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a667a4a-f8e8-418c-944b-a8ada0391e26%2F78016c69-2bac-4224-af18-f42a005af401%2Fc43qw29_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Income Statement
Revenue
Cost of Goods sold
Gross profit
Selling& Administrative Expense
Other Expenses
Net Income
Questions:
1. What would be the cause of changes in owner's equity?
2. How come that the net income was decreased in peso amount while its sales increases? What
are the possible factors that affect the choanges in the net income?
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