Activity-1 Unit 2 Financial Analysis 3BSA-1

Name: Laurenz R. Patawe

Section: 3BSA-1

Comparative Income Statement of Star Company for 2016-2018

Star Company
Comparative Income Statement
December 31, 2016, 2017 and 2018
(in Philippine Pesos)
Effect: Increase/Decrease
2018 2017 Amount Percentage
Sales 200,000 210,000 (10,000) -4.76%
Sales Return and Allowances 40,000 25,000 15,000 60.00%
Net Sales 160,000 185,000 (25,000) -13.51%
Cost of Good Sold 100,000 115,625 (15,625) -13.51%
Gross Profit 60,000 69,375 (9,375) -13.51%
Operating Expenses
Selling Expenses 22,000 25,000 (3,000) -12.00%
General Expenses 8,000 12,000 (4,000) -33.33%
Total Operating Expenses 30,000 37,000 (7,000) -18.92%
Income from Operation 30,000 32,375 (2,375) -7.34%
Non-operating income 6,000 2,500 3,500 140.00%
Income Before Interest Expenses and taxes 36,000 34,875 1,125 3.23%
Interest Expense 4,000 3,500 500 14.29%
Income Before Taxes 32,000 31,375 625 1.99%
Income Taxes 11,200 10,981 219 1.99%
Net Income 20,800 20,394 406 1.99%
 Star Company
Comparative Balance Sheet
December 31, 2016,2017,2018
(in Philippine Pesos)
Effect: Increase/Decrease
2018 2017 Amount Percentage
ASSETS
Current Assets
Cash 65,000 70,000 (5,000) -7.14%
Accounts Receivable 40,000 35,000 5,000 14.29%
Marketable securities 40,000 35,000 5,000 14.29%
Inventory 100,000 80,000 20,000 25.00%
Total Current Assets 245,000 220,000 25,000 11.36%
Plant Assets 200,000 160,000 40,000 25.00%
Total Assets 445,000 380,000 65,000 17.11%

LIABILITIES
Current Liabilities 110,800 105,000 5,800 5.52%
Long-term Liabilities 160,000 145,000 15,000 10.34%
Total Liabilities 270,800 250,000 20,800 8.32%

SHAREHOLDERS' EQUITY
Common Stock P5 par value, 20,000 shares 100,000 100,000 - 0.00%
Retained Earnings 74,200 30,000 44,200 147.33%
Total Shareholders' Equity 174,200 130,000 44,200 34.00%
Total Liabilities and Stockholders' Equity 445,000 380,000 65,000 17.11%