TREN Corporation Comparative Income Statements For the years ended December 31, 2015 & 2014 (in Thousand pesos) Increase (decrease) AMOUNT 2015 2014 PERCENT 400,000 280,000 120,000 Sales 480,000 Less: Cost of good sold 364,000 Gross Income 116,000 15,000 131,000 12,400 14,400 Add: Total Income Other Income 9,600 129,600 Less: Other Expenses Finance Costs 19,000 (Interest) Total Expenses 26,800 104,200 32,334 71,866 19,000 110,600 35,392 75,208 Net Income before Taxes Less: Income Tax Net Income after Taxes Required: Horizontal Analysis a. Horizontal Analysis Computation b. Analysis and interpretation of your findings Draw the implications to management d. State your recommendations 1. с. 2. Vertical Analysis Vertical Analysis Computation b. Analysis and interpretation of your findings Draw the implications to management d. State your recommendations а. с.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please help me to answer the vertical analysis :)

TRÊN Corporation
Comparative Income Statements
For the years ended December 31, 2015 & 2014
(in Thousand pesos)
Increase (decrease)
2015
2014
AMOUNT
PERCENT
Sales
400,000
280,000
120,000
9,600
129,600
480,000
Cost of good sold
364,000
116,000
15,000
131,000
12,400
14,400
Less:
Gross Income
Add:
Other Income
Total Income
Less: Other Expenses
Finance
Costs
19,000
(Interest)
Total Expenses
26,800
104,200
32,334
19,000
110,600
35,392
75,208
Net Income before Taxes
Less:
Income Tax
Net Income after Taxes
71,866
Required:
Horizontal Analysis
Horizontal Analysis Computation
b. Analysis and interpretation of your findings
Draw the implications to management
d. State your recommendations
1.
а.
с.
2. Vertical Analysis
Vertical Analysis Computation
b. Analysis and interpretation of your findings
Draw the implications to management
d. State your recommendations
а.
с.
Transcribed Image Text:TRÊN Corporation Comparative Income Statements For the years ended December 31, 2015 & 2014 (in Thousand pesos) Increase (decrease) 2015 2014 AMOUNT PERCENT Sales 400,000 280,000 120,000 9,600 129,600 480,000 Cost of good sold 364,000 116,000 15,000 131,000 12,400 14,400 Less: Gross Income Add: Other Income Total Income Less: Other Expenses Finance Costs 19,000 (Interest) Total Expenses 26,800 104,200 32,334 19,000 110,600 35,392 75,208 Net Income before Taxes Less: Income Tax Net Income after Taxes 71,866 Required: Horizontal Analysis Horizontal Analysis Computation b. Analysis and interpretation of your findings Draw the implications to management d. State your recommendations 1. а. с. 2. Vertical Analysis Vertical Analysis Computation b. Analysis and interpretation of your findings Draw the implications to management d. State your recommendations а. с.
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