Ortega, Angelica Jane C.

BSA 3- FMA3A
A.

Lui Company
Balance Sheet
As of December 31, 2014

Amount %
Cash and cash $ 2, 500, 000 47%
equivalents
Accounts Receivable 255, 000 5%
Inventories 225, 000 4%
Total Current Assets 2, 980, 000 56%
Plant, property, & 1, 200, 000 23%
equipment
Long term Investments 1, 100, 000 21%
Total Assets $ 5, 280 000 100%

Accounts payable $ 155, 000 3%

Accrued Liabilities 975, 000 18%
Long-term debt 450, 000 9%
Total liabilities 1, 580 000 30%
Contributed capital 2, 900 000 55%
Retained earnings 800, 000 15%
Total Stockholders’ 3, 700 000 70%
equity
Total Liabilities & 5, 280, 000 100%
Stockholders’ Equity

In the vertical analysis of Lui Companys’ balance sheet reveals a

large increase in assets and equity than liabilities. The composition of
the assets has more current assets than non-current assets which
shows that the company has more cash than investing to long-term
assets. Moreover, the significant component of the analysis is the
stockholders’ equity having 70 percent as a confirmation that the
company has a lot or greater capital than liabilities. This conclude that
the company has put their resources well and shows liquidity.

 
Ortega, Angelica Jane C.
BSA 3- FMA3A
B.

Purrfect Pets, Inc.

Comparative Income Statements
For the years ended December 31, 2014 and 2015

2013 2014
Amount Amount Increase Percent
(decrease) Change %
Sales revenue $ 683, 700 $ 731, 559 $ 47, 859 7%
Cost of Goods 329, 100 358, 719 29, 619 9%
sold
Gross Profit 354, 600 372, 840 18, 240 5%
Operating and 114, 400 122, 960 8, 560 7%
other expense
Interest Expense 8, 500 6, 600 (1,900) -22%
Income tax 36,700 37, 200 500 1%
expense
Net Income $ 195, 000 $ 206, 080 11, 080 6%

In the horizontal analysis above, analysis of the changes indicates a

large increase in sales revenue (7%), cost of good sold (9%), and the gross
profit or margin had an increase of 5%. While the operating expenses and
income tax expense increased also 7% and 1% respectively. On the other
hand, the interest expense decreased with 22%. With this changes, notice
that even though the company increased in its expenses as the year goes by
still it regulates an increase of 6% in the net income which is a good thing.
To conclude, the performance of the company is in a good condition or
shows how profitably is company operating.