Horizontal and Vertical Analysis Question
The following data is presented for Matt's Mats Ltd. Matt's Mats Ltd. Comparative Statements of Comprehensive Income For the years ending 30/06/2014 and 30/06/2013 2014 115,500 (31,300) 84,200 2013 135,000 (33,000) 102,000 Net Sale (all on credit) Cost of Goods Sold Gross Profit Less Expenses: Advertising & Selling Salaries & Wages Suppliers Expense Interest Expenses Profit before Income Tax Income Tax Comprehensive Income after Tax 2,500 17,350 13,654 8,600 42,096 (12,628) 29,468 3,300 21,015 12,106 12.495 53,084 (15,925) 37,159 Matt's Mats Ltd. Statement of Financial Position As at the 30/06/2014 Matt's Mats Statement of Financial Position As at the 30/06/2013 $ $ Current Assets Cash Accounts Receivable (net) Inventory Prepaid Expenses Total Current Assets 510 3,500 4,200 1,290 30 3,370 4,300 1,290 9,500 8,990 Non-current Assets Land Buildings Less Accumulated Depn. Total Non-current Assets 10,500 12,800 (7,500 6,000 9,840 (6,330) 15,800 9,510 Total Assets 25,300 18,500 Total Current Liabilities Non-current Liabilities 5,000 9,800 4,150 7.900 Total Liabilities 14,800 12,050 Shareholders' Equity Contributed Capital Retained Profits Total Shareholders' Equity 6,000 4.500 6,000 450 10,500 6,450 3. Cost of Goods Sold (2 marks) Vertical Analysis 2014 : Horizontal Analysis : 6. Non-current Liabilities (2 marks) Vertical Analysis 2014 : Horizontal Analysis : 5. Comprehensive Income after Tax (2 marks) Vertical Analysis 2014 : Horizontal Analysis : 7. Explain why the balance in Retained Earnings at 30/6/2014 is not the profit figure of $29,468. (2 marks) The following data is presented for Matt's Mats Ltd. Matt's Mats Ltd. Comparative Statements of Comprehensive Income For the years ending 30/06/2014 and 30/06/2013 2014 115,500 (31,300) 84,200 2013 135,000 (33,000) 102,000 Net Sale (all on credit) Cost of Goods Sold Gross Profit Less Expenses: Advertising & Selling Salaries & Wages Suppliers Expense Interest Expenses Profit before Income Tax Income Tax Comprehensive Income after Tax 2,500 17,350 13,654 8,600 42,096 (12,628) 29,468 3,300 21,015 12,106 12.495 53,084 (15,925) 37,159 Matt's Mats Ltd. Statement of Financial Position As at the 30/06/2014 Matt's Mats Statement of Financial Position As at the 30/06/2013 $ $ Current Assets Cash Accounts Receivable (net) Inventory Prepaid Expenses Total Current Assets 510 3,500 4,200 1,290 30 3,370 4,300 1,290 9,500 8,990 Non-current Assets Land Buildings Less Accumulated Depn. Total Non-current Assets 10,500 12,800 (7,500 6,000 9,840 (6,330) 15,800 9,510 Total Assets 25,300 18,500 Total Current Liabilities Non-current Liabilities 5,000 9,800 4,150 7.900 Total Liabilities 14,800 12,050 Shareholders' Equity Contributed Capital Retained Profits Total Shareholders' Equity 6,000 4.500 6,000 450 10,500 6,450 3. Cost of Goods Sold (2 marks) Vertical Analysis 2014 : Horizontal Analysis : 6. Non-current Liabilities (2 marks) Vertical Analysis 2014 : Horizontal Analysis : 5. Comprehensive Income after Tax (2 marks) Vertical Analysis 2014 : Horizontal Analysis : 7. Explain why the balance in Retained Earnings at 30/6/2014 is not the profit figure of $29,468. (2 marks)
