Question No 5: (10 Marks) STERIACADEMICYEAR 2018-2019 Having gathered the background information, the next stage is to start the detailed numerical analysis of the financial statements. Horizontal, vertical, and trend analysis is a relatively means of comparing the relative size of individual components within each of the main summaries. Horizontal analysis achieves this by calculating the percentage change from the preceding year to the current year, whilst vertical analysis expresses each income statement item as a percentage of the sales total, each balance sheet item as a percentage of total net assets, and cash flow statement item as a percentage of net cash flow from operating activities. Trend analysis is similar to the horizontal analysis in which base year is set at 100 and subsequent years are related to this base year. There are different groups of people who use these types of analyses. Internal users like management and the board of directors use analysis to analyze the business as a whole and make decisions on how it runs. They use the performance figures to gauge whether they should open a new branch, close branch, or how to increase revenues, etc., R.2018-2019 FINALMEXAMINA You, as an Accountant having obtained a good general impression of the scope and nature of the business; using a simplified incomplete version of income statement items and balance sheet items of Domino's Pizza's as provided below, you are required to input the data by the approach of vertical breakdown for the period 2021 in a Spreadsheet Template in the MS Excel. By using the vertical approach format and by using necessary formulas wherever required, construct a complete statement with all figures in OMR Amounts in a spreadsheet. As calgary - Nuwber: Decimal Place and we 1.000 st. Use forwale wherever required 14 of 14 131 Page Particulars 2018 (Amount in OMR) 77 275,000 ? 77 7? 25,000 77 72 Sales Revenue Cost of goods sold (55% of Sales) Gross Profit Indirect Expenses (25% of Sales) Operating Profit Other incomes Net Income Before Tax Income Tax (15% tax rate) Net Income After Tax for the current year Equity Share Capital Share premium (50% of Equity Share Capital) Non-distributable capital reserve Capital Redemption Reserve Revaluation Reserve Profit and Loss account (till the year ending 2017) Current year - 2018 Total Shareholders' funds Intangible assets Tangible assets Investments in Joint ventures Total Fixed Assets (6 times of Sales Revenue) Current Liabilities Current Assets Return on Shareholders' funds Current Ratio Return on Total Assets 1,000,000 77 700,000 150,000 77 220,000 72 2,976,250 283,600 2,386,000 77 ?? 423.750 400,000 77 ?? Z
