Homework Help is Here – Start Your Trial Now!
Business
Accounting
Vertical Analysis ABC INDUSTRIES CONSOLIDATED INCOME STATEMENT DECEMBER 31, 2020 2020 2019 Amount P 38,028,500 P 26,358,500 P 11,670,000 Amount 100% P 26,315,420 69% P 16,526,084 31% P 9,789,336 Net Sales Cost of Goods Sold 100% 63% Gross Profit 37% Selling Expenses General and Administrative Expenses Total Operating Expenses Earnings before income tax P 7,111,740 P 2,123,420 P 9,235,160 P 2,434,840 P 925,239 P1,509,601 19% P 6,157,808 6% P 1,368,402 24% P 7,526,210 6% P 2,263,126 2% P 868,409 4% P 1,394,717 23% 5% 29% 9% Income tax 3% Net Income 5%

Vertical Analysis ABC INDUSTRIES CONSOLIDATED INCOME STATEMENT DECEMBER 31, 2020 2020 2019 Amount P 38,028,500 P 26,358,500 P 11,670,000 Amount 100% P 26,315,420 69% P 16,526,084 31% P 9,789,336 Net Sales Cost of Goods Sold 100% 63% Gross Profit 37% Selling Expenses General and Administrative Expenses Total Operating Expenses Earnings before income tax P 7,111,740 P 2,123,420 P 9,235,160 P 2,434,840 P 925,239 P1,509,601 19% P 6,157,808 6% P 1,368,402 24% P 7,526,210 6% P 2,263,126 2% P 868,409 4% P 1,394,717 23% 5% 29% 9% Income tax 3% Net Income 5%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Prepare a ratio analysis ( Conclusion only) on each statement

Vertical Analysis ABC INDUSTRIES CONSOLIDATED INCOME STATEMENT DECEMBER 31, 2020 2020 2019 Amount P 38,028,500 P 26,358,500 P 11,670,000 Amount Net Sales Cost of Goods Sold 100% P 26,315,420 100% 69% P 16,526,084 31% P 9,789,336 63% Gross Profit 37% Selling Expenses General and Administrative Expenses Total Operating Expenses Earnings before income tax P 7,111,740 P 2,123,420 P 9,235,160 P 2,434,840 P 925,239 P1,509,601 19% P 6,157,808 6% P 1,368,402 24% P 7,526,210 6% P 2,263,126 2% P 868,409 23% 5% 29% 9% Income tax 3% Net Income 4% P 1,394,717 5% Common Stock Shares Outstanding Earning per share of common stock 2,500,000 0.6 2,498,750 0.56
Transcribed Image Text:Vertical Analysis ABC INDUSTRIES CONSOLIDATED INCOME STATEMENT DECEMBER 31, 2020 2020 2019 Amount P 38,028,500 P 26,358,500 P 11,670,000 Amount Net Sales Cost of Goods Sold 100% P 26,315,420 100% 69% P 16,526,084 31% P 9,789,336 63% Gross Profit 37% Selling Expenses General and Administrative Expenses Total Operating Expenses Earnings before income tax P 7,111,740 P 2,123,420 P 9,235,160 P 2,434,840 P 925,239 P1,509,601 19% P 6,157,808 6% P 1,368,402 24% P 7,526,210 6% P 2,263,126 2% P 868,409 23% 5% 29% 9% Income tax 3% Net Income 4% P 1,394,717 5% Common Stock Shares Outstanding Earning per share of common stock 2,500,000 0.6 2,498,750 0.56
Income Statement Balance Sheet ... A B 1 2 ABC INDUSTRIES CONSILIDATED BALANCE SHEET 4 As of December 31, 2020 6 2020 2019 7 Amount % Amount % 8. Current Assets Cash and Cash Equivalents 10 Accounts Receivable (Net) 9. 1,271,231 22% P 677,600 994,409 17% P 773,134 11 Note Receivable P 350,000 6% P 320,000 12 Merchandise Inventories 3,250,000 55% P 4,190,000 13 Total Current Assets P 5,865,640 30% P 5,960,734 14 P 13,668,850 15 Property and Equipment (Net) 16 Total Assets 70% P 11,798,800 P 19,534,490 100% P 17,758,889 17 18 Liabilities 19 Accounts Payable 20 Salaries Payable Incomr Taxes Payable 1,275,300 7% P 1,477,800 P 330,000 2% P 245,200 21 925,239 5% P 500,200 8,000 22 Other Accrued Expenses Total Current Liablities P 0.40% P 48,339 23 2,538,539 13% P 2,271,539 24 25 Long-Term Liabilities 26 Mortgage Payable 27 Bonds Payable 500,000 2.56% P 536,000 2,400,000 2,900,000 12.29% P 2,340,000 28 Total Long Term Liabilities 14.85% P 2,876,000 29 30 Total Liabilities P 5,438,539 28% P 5,147,539 31 32 Stock Holder's Equity 33 Common Stock 2,500,000 shares 34 at P 1 par Value per share P 2,500,000 13% P 2,498,539 35 36 Capital in Excess of Par Value P 1,750,000 8.96% P 1,726,250 37 38 Retained Earnings, January 1, 20XX P 8,386,350 42.93% P 6,991,633 39 40 Net Income for the Year 1,509,601 7.73% P 1,424,717 41 Less Dividends 50,000 0.26% P 30,000 42 43 Retained Earnings, Dec. 31, 20XX 9,845,951 50% P 8,386,350 44 45 Total Stockholder Equity 14,095,951 72% P 12,611,350 46 47 Total Liabilities and Stockholder's Equity P 19,534,490 100% P 17,758,889 48
Transcribed Image Text:Income Statement Balance Sheet ... A B 1 2 ABC INDUSTRIES CONSILIDATED BALANCE SHEET 4 As of December 31, 2020 6 2020 2019 7 Amount % Amount % 8. Current Assets Cash and Cash Equivalents 10 Accounts Receivable (Net) 9. 1,271,231 22% P 677,600 994,409 17% P 773,134 11 Note Receivable P 350,000 6% P 320,000 12 Merchandise Inventories 3,250,000 55% P 4,190,000 13 Total Current Assets P 5,865,640 30% P 5,960,734 14 P 13,668,850 15 Property and Equipment (Net) 16 Total Assets 70% P 11,798,800 P 19,534,490 100% P 17,758,889 17 18 Liabilities 19 Accounts Payable 20 Salaries Payable Incomr Taxes Payable 1,275,300 7% P 1,477,800 P 330,000 2% P 245,200 21 925,239 5% P 500,200 8,000 22 Other Accrued Expenses Total Current Liablities P 0.40% P 48,339 23 2,538,539 13% P 2,271,539 24 25 Long-Term Liabilities 26 Mortgage Payable 27 Bonds Payable 500,000 2.56% P 536,000 2,400,000 2,900,000 12.29% P 2,340,000 28 Total Long Term Liabilities 14.85% P 2,876,000 29 30 Total Liabilities P 5,438,539 28% P 5,147,539 31 32 Stock Holder's Equity 33 Common Stock 2,500,000 shares 34 at P 1 par Value per share P 2,500,000 13% P 2,498,539 35 36 Capital in Excess of Par Value P 1,750,000 8.96% P 1,726,250 37 38 Retained Earnings, January 1, 20XX P 8,386,350 42.93% P 6,991,633 39 40 Net Income for the Year 1,509,601 7.73% P 1,424,717 41 Less Dividends 50,000 0.26% P 30,000 42 43 Retained Earnings, Dec. 31, 20XX 9,845,951 50% P 8,386,350 44 45 Total Stockholder Equity 14,095,951 72% P 12,611,350 46 47 Total Liabilities and Stockholder's Equity P 19,534,490 100% P 17,758,889 48
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS