PROBLEM NO. 1-FINANCIAL STATEMENT ANALYSIS Read and follow carefully the instructions and WRITE LEGIBLY YOUR Using the table provided, compute for Vertical and Horizontal Analysis of the Statement of Operations of ANSWER. BAGANI Corporation. (10 pts) BAGANI Corporation Statements of Income and Retained Earnings For the Year Ended December 31, 2018 and 2017 (In Philippine Peso) Ve 2018 2018 2018 2017 Peso Change Chan 2017 6000 50,000| 100%| 100% Net Sales Less: Costs of Goods Sold Gross Profit 45,000 15,000 7,500 7,500 350 7,150 2,850 5,000 10,000 Operating Income Income before tax Less: Income Tax Expense Net Income Add: Retained earnings, January 1 Less: Dividends declared 9,600 3,850 4,300 5,750 10,000 750 15,000 15,000 750 18,550 Additional information Purchases for 2018 Costs of goods sold Add: Ending inventory Total cost of goods available for sale Less: Beginning inventory Purchases for 2018 45,000 11,875 56,875 6,875 50,000 Market price of common stock December 31, 2017 December 31, 2018 1.50 1.65