Exercise A: Horizontal Analysis
Required:
1) Using JENNY Merchandising's Statement of Financial Position and Statement of Comprehensive Income (2015-2016), prepare a horizontal or comparative analysis showing peso and percentage changes for two years.
2) Using the comparative horizontal analysis, make a simple financial statement analysis focusing on the following areas:
a) Liquidity
b) Solvency
c) Profitability
Exercise B: Vertical Analysis
Required:
1) Using JENNY Merchandising's Statement of Financial Position and Statement of Comprehensive Income (2014-2018), prepare the following:
a) Common-size financial position
b) Common-size comprehensive income
Note: You may choose what year who want to use as your data.
2) Make a simple analysis.
here are the financial statements, etc.
if more questions: contact me at l..t@su.edu.ph
JENNY Merchandising Statement of Comprehensive Income December 31, 2014 to 2018 (Amounts in Thousand Pesos) 2014 2015 2016 2017 2018 Sales 2,560 2,598 3,585 4,551 4,933 Cost of sales 1872 1.885 2,584 2.983 3,164 Gross profit 688 713 1.001 1,568 1,769 Operating expenses Selling expenses 345 348 547 632 760 Administrative 149 162 238 245 278 Total 494 510 785 877 1.038JENNY Merchandising Statement of Financial Position quads sestasoing bus masq December 31, 2014 to 2018 (Amounts in Thousand Pesos) 2014 2015 2016 2017 2018 Current assets Cash and cash equivalents 84 176 Trading securities 177 222 249 315 119 119 118 Trade and other receivables 135 783 610 691 810 876 Inventory 592 659 726 805 760 Prepaid expenses 182 152 155 156 106 Total 1,956 1,716 1.868 2,111 2,126 Non-current assets Property, plant, and equipment 1,281 2,047 2,071 2,143 2,160 Long-term investment 13 332 487 487 524 Total 1,294 2.379 2.558 2,630 2.684 Total assets 3,250 4.095 4,426 4,741 4.810 Current liabilities Trade and other payables 731 860 783 639 611 Other current liabilities 221 57 75 104 86 Total 952 917 858 743 697 Non-current liabilities 4% Bonds payable 488 798 722 688 602 Total liabilities 1,440 1,715 1,580 1,431 1,299 Owner's equity Jenny, Capital 1,810 2,380 2.846 3,310 3,511 Total liabilities and owner's capital 3,250 4.095 4.426 4,741 4,810Operating income 194 203 216 691 731 Interest expense 20 32 29 28 24 Income before tax 174 171 187 663 707 Income tax 52 51 56 199 212 Net income 122 120 131 464 495 Required: Perform the following: 1. Prepare a horizontal or comparative analysis showing peso and percentage changes. 2. Using the comparative horizontal analysis, make a simple financial statement analysis focusing on the following areas: a. liquidity b. solvency c. profitabilityJENNY Merchandising Statement of Financial Position December 31, 2018 cup of Current assets Cash and cash equivalents 249,000 Trading securities 135,000 Trade and other receivables 876,000 Inventory 760,000 Prepaid expenses 106,000 2,126,000 Non-current assets Property, plant, and equipment 2,160,000 Long-term investment 524,000 2,684.000 Total assets 4.810.000 Current liabilities Trade and other payables 611,000 Other current liabilities Non-current liabilities 86.000 697,000 4% Bonds payable Total liabilities 602,000 Owner's equity 1,299,000 Jenny, Capital Total liabilities and owner's capital 3.511,000 4.810.000JENNY Merchandising Statement of Comprehensive Income December 31, 2018 Sales 4,933,000 Cost of sales 3.164,000 Gross profit 1,769,000 Operating expenses Selling expenses 760,000 Administrative 278,000 1,038,000 Operating income 731,000 Interest expense 24,000 Income before tax 707,000 Income tax 212,000 Net income 495.000 Required: Prepare the following and make a simple analysis. 1. common-size financial position 2. common-size comprehensive income
