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vertical and horizontal analysis in the given data

vertical and horizontal analysis in the given data

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Conduct a vertical and horizontal analysis in the given data
Income Statement Sales 300,000.00 200,000.00 Less: Cost of goods sold 120,000.00 100,000.00 Gross Profit on sales 180,000.00 100,000.00 Less: Operating expenses (including depreciation, P6,000) 125,000.00 60,000.00 Income before income tax 55,000.00 40,000.00 Less: Provision for income tax 19,250.00 14,000.00 Net Income 35,750.00 26,000.00 Balance Sheet Assets Current Assets Cash 15,500.00 12,200.00 Marketable Securities 5,000.00 16,000.00 Accounts Receivable, Net 25,000.00 15,000.00 Finished Goods 24,000.00 26,000.00 Work in Process 16,000.00 13,500.00 Raw Materials 12,000.00 8,000.00 1,200.00 2,000.00 Factory Supplies Prepaid Expenses 1,800.00 2,300.00 Total Current Assets 100,500.00 95,000.00 Investments 25,000.00 20,000.00 Plant, property and equipment, net of accumulated depreciation Total assets 75,000.00 60,000.00 200,500.00 175,000.00 Liabilities and Stocholder's Equity Accounts Payable Income taxes payable Accrued expenses 15,000.00 22,000.00 19,250.00 14,000.00 5,000.00 9,000.00 Total current liabilities 39,250.00 45,000.00 Long-term debt Mortgage loans payable 60,000.00 50,000.00 Total Liabilities 99,250.00 95,000.00 Stockholders' equity 12% Preferred stock, par P10 20,000.00 20,000.00 Common stock, par P10 30,000.00 25,000.00 Premium on preferred stock 5,000.00 5,000.00 Premium on common stock 10,000.00 8,000.00 Total Paid-in capital Retained earnings Total stockholders' equity 65,000.00 58,000.00 36,250.00 22,000.00 101,250.00 80,000.00 Total Liabilities and stockholders' equity 200,500.00 175,000.00
Transcribed Image Text:Income Statement Sales 300,000.00 200,000.00 Less: Cost of goods sold 120,000.00 100,000.00 Gross Profit on sales 180,000.00 100,000.00 Less: Operating expenses (including depreciation, P6,000) 125,000.00 60,000.00 Income before income tax 55,000.00 40,000.00 Less: Provision for income tax 19,250.00 14,000.00 Net Income 35,750.00 26,000.00 Balance Sheet Assets Current Assets Cash 15,500.00 12,200.00 Marketable Securities 5,000.00 16,000.00 Accounts Receivable, Net 25,000.00 15,000.00 Finished Goods 24,000.00 26,000.00 Work in Process 16,000.00 13,500.00 Raw Materials 12,000.00 8,000.00 1,200.00 2,000.00 Factory Supplies Prepaid Expenses 1,800.00 2,300.00 Total Current Assets 100,500.00 95,000.00 Investments 25,000.00 20,000.00 Plant, property and equipment, net of accumulated depreciation Total assets 75,000.00 60,000.00 200,500.00 175,000.00 Liabilities and Stocholder's Equity Accounts Payable Income taxes payable Accrued expenses 15,000.00 22,000.00 19,250.00 14,000.00 5,000.00 9,000.00 Total current liabilities 39,250.00 45,000.00 Long-term debt Mortgage loans payable 60,000.00 50,000.00 Total Liabilities 99,250.00 95,000.00 Stockholders' equity 12% Preferred stock, par P10 20,000.00 20,000.00 Common stock, par P10 30,000.00 25,000.00 Premium on preferred stock 5,000.00 5,000.00 Premium on common stock 10,000.00 8,000.00 Total Paid-in capital Retained earnings Total stockholders' equity 65,000.00 58,000.00 36,250.00 22,000.00 101,250.00 80,000.00 Total Liabilities and stockholders' equity 200,500.00 175,000.00
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