USE MANUAL COMPUTATION

Compute for the Peso Value Change and Percentage change of ABC Merchandising
Horizontal Analysis of Comparative Income Statement

ABC MERCHANDISING
COMPARATIVE INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31

2014 2013 Peso Value Change Percentage Chage

Sales 1, 000,000 700,000 P 300,000 42.86%
less: cost of goods sold 689,500 444,500 P 245,000 55.12%
Gross profit 310,500 255,500 P 55,000 21.53%
less: operating expenses 120,000 75,000 P 45,000 60%
interest and taxes 190,500 180,500 P 10,000 5.54%
less: interest expense 2,500 2,500 P 0 0
earnings before tax 188,000 178,000 P 10,000 5.62%
Income tax expenses 60,160 56,960 P 3,200 5.62%
NET iNCOME 127,840 121,040 P 6,800 5.62%

Compute for the Percentage of ABC Merchandising using

Vertical Analysis of Comparative Income Statement

ABC MERCHANDISING .
COMPARATIVE INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31

2014 PERCENTAGE 2013 PERCENTAGE

Sales 1, 000,000 100% 700,000 100%
less : cost of goods sold 689,500 68.95% 444,500 63.50%
Gross profit 310,500 31.05% 255,500 36.50%
less: operating expenses 120,000 12% 75,000 10.71%
interest and taxes 190500 19.05% 180,500 25.79%
less interest expense 2500 0.25% 2,500 0.36%
earnings before tax 188000 18.80% 178,000 25.43%
Income tax expenses 60160 6.02% 56,960 8.14%

NET iNCOME 127,840 12.78% 121,040 17.29%