| Required: |
| 1. Prepare statement of financial position, using Report Form. Use Notes to FS. |
| 2. Compute for the vertical analysis |
| 3. Liquidity Ratio |
| 4. Asset Management ratio |
ABC Company provided the following account balances on December 31, 2020: ABC Company Income Statement 5,000,000.00 For the years ended December 31, 2020 and 2019 500,000.00 880,000.00 Share capital Share premium Retained earnings Serial bonds payable (P500,000 due every July 1 of each year) Employees Income tax payable Notes payable 2,500,000.00 2020 2019 20,000.00 Sales 50,000,000.00 55,000,000.00 100,000.00 Cost of Sales 30,000,000.00 30,250,000.00 Accrued expenses 30,000.00 Gross Profit 20,000,000.00 24,750,000.00 Interest payable 10,000.00 Operating Expenses Income tax payable 60,000.00 General and admin 5,000,000.00 4,500,000.00 Allowance for doubtful accounts 50,000.00 Selling expenses 7,500,000.00 7,000,000.00 Advances from customers 100,000.00 Operating Income 7,500,000.00 13,250,000.00 Accounts receivable 500,000.00 74,000.00 74,000.00 Interest expenses Income Before Tax 1,600,000.00 7,426,000.00 13,176,000.00 Accumulated depreciation building Accumulated depreciation-machinery 1,300,000.00 Income Tax Expense 1,891,000.00 3,952,800.00 9,223,200.00 Investment in bonds 1,500,000.00 Net Income 5,535,000.00 Land 1,500,000.00 Machinery 2,000,000.00 Factory supplies 50,000.00 Notes receivable 150,000.00 Building 4,000,000.00 Cash 420,000.00 Claim receivable 20,000.00 Finished goods 400,000.00 Franchise 200,000.00 600,000.00 Goods in process Prepaid insurance 20,000.00 Raw materials 200,000.00 Trading securities 250,000.00 Tools 40,000.00 Goodwill 1,000,000.00 500,000.00 Plant expansion fund Accounts payable 300,000.00 Required: 1. Prepare statement of financial position, using Report Form. Use Notes to FS 2. Compute for the vertical analysis 3. Liquidity Ratio 4. Asset Management ratio 5. Debt management ratio 6. Profitability ratio ABC Company provided the following account balances on December 31, 2020: ABC Company Income Statement 5,000,000.00 For the years ended December 31, 2020 and 2019 500,000.00 880,000.00 Share capital Share premium Retained earnings Serial bonds payable (P500,000 due every July 1 of each year) Employees Income tax payable Notes payable 2,500,000.00 2020 2019 20,000.00 Sales 50,000,000.00 55,000,000.00 100,000.00 Cost of Sales 30,000,000.00 30,250,000.00 Accrued expenses 30,000.00 Gross Profit 20,000,000.00 24,750,000.00 Interest payable 10,000.00 Operating Expenses Income tax payable 60,000.00 General and admin 5,000,000.00 4,500,000.00 Allowance for doubtful accounts 50,000.00 Selling expenses 7,500,000.00 7,000,000.00 Advances from customers 100,000.00 Operating Income 7,500,000.00 13,250,000.00 Accounts receivable 500,000.00 74,000.00 74,000.00 Interest expenses Income Before Tax 1,600,000.00 7,426,000.00 13,176,000.00 Accumulated depreciation building Accumulated depreciation-machinery 1,300,000.00 Income Tax Expense 1,891,000.00 3,952,800.00 9,223,200.00 Investment in bonds 1,500,000.00 Net Income 5,535,000.00 Land 1,500,000.00 Machinery 2,000,000.00 Factory supplies 50,000.00 Notes receivable 150,000.00 Building 4,000,000.00 Cash 420,000.00 Claim receivable 20,000.00 Finished goods 400,000.00 Franchise 200,000.00 600,000.00 Goods in process Prepaid insurance 20,000.00 Raw materials 200,000.00 Trading securities 250,000.00 Tools 40,000.00 Goodwill 1,000,000.00 500,000.00 Plant expansion fund Accounts payable 300,000.00 Required: 1. Prepare statement of financial position, using Report Form. Use Notes to FS 2. Compute for the vertical analysis 3. Liquidity Ratio 4. Asset Management ratio 5. Debt management ratio 6. Profitability ratio
