Evaluate the companys financial position and results of operation using the comparative statement analysis i. Short-term solvency analysis ii. Long-term financial position analysis iii. Operating efficiency and profitability analysis
Music Lover, Inc Comparative Statement of Financial Position December 311, 2019 and 2018 Administrative Total expenses Operating income Interest expense Income before taxes Income taxes (35%) Net income 138,000 1,858,000 142,000 27,907 114,093 39,933 74,160 142,000 (4,000) (2.82%) 1,681,910 177,000 10.52% 119,892 22,108 18.44% 29,270 (1,363) (4.66%) 90,622 23,471 31,718 8,215 25.90% 58,904 15,256 25.90% 25.9096 Increase (Decrease) Amount Percent 2019 2018 5,600 68,560 5,600 53,304 15,256 28.62% Assets Current Assets Cash A/R (net Inventory Prepaid Expenses Total Current Assets Non-current assets PPE (net) Total Assets 70,392 218,549 223,242 67,710 579,893 68,250 184,978 197,097 76,542 526,867 2,142 33,571 26,145 (8,832) 53,026 3.14% 18.15% 13.27% (11.54%) 10.06% Dividends to preference shareholders Net income remaining for ordinary shareholders Dividends to ordinary shareholders Net income added to retained earnings Retained earnings, beg, of year Retained earnings, end of year 40,000 28,560 72,950 101.5101 32,000 8,000 21,304 7,256 51,646 21,304 72,950 28,560 25% 34.06% 41.25% 39.15% 90,503 670,396 110,997 637,854 (20,484) 32,542 (18.46%) 5.10% 19,079 14,903 13.71% 26.25% Liabilities and Equity Current Liabilities A/P Bank loans and other payables Current portion of N/P Total Current Liabilities Non-current Liabilities N/P (11%) Total Liabilities Equity Preperence shres, P8 dividend, 158,214 71,672 30,000 259,886 139,135 56,769 30,000 225,904 Evaluate the company's financial position and results of operation using the comparative statement analysis i. Short-term solvency analysis - ii. Long-term financial position analysis ii. Operating efficiency and profitability analysis 33,982 15.04% 139,000 398,886 169,000 394,904 (30,000) 3,982 (17.75%) 1.01% 70,000 70,000 - P100 par - - Ordinary shares, P1 par value Additional paid-in capital Total paid-in capital Ratained earnings Total Equity Total Liabilities and equity 10,000 90,000 170,000 101,510 271,510 670,396 10,000 90,000 170,000 72,950 242,950 637,854 28,560 28,560 32,542 39.15% 11.76% 5.10% Music Lover, Inc. Comparative Income Statement For the Years Ended December 31, 2019 and 2018 2019 2,000,000 Increase(Decrease) 2018 Amount Percent 1,801,802 198,198 11% Sales revenue Expenses Cost of goods sold Selling 1,472,000 1,309,910 162,090 12.37% 248,000) 230,000 18,000 7.83%
