Vertical Analysis

Assets 2013 % 2014 %

Non Current Assets
PPE 1340000 1340000/1800000*100=74.44 1050000 70%
Accumulated Depreciation (140000) 7.77% (10000) 6.72%
Total non current Assets 1200000 67% 950000 63.84%

Current Assets
Inventories 218000 218000/1800000*100=12.11 185000
Trade Receivables 300000 16.67 280000
Prepaid expenses 60000 3.33 55000
Cash & cash equivelants 22000 1.22 18000
Total current assets 600000 33 538000
Total Assetss 1800000 100% 1488000

Equity
Share Capital 300000 300000/1800000*100=16.66 285000
%
Contribution surplus
Retained earnining 255000 255000/1800000*100=14.16 205000
%
Total other income
Total equity 555000 30.82 490000

Liabilities
Non current liabilities
Long term borrowing 800000 800000/1800000*100=44.45 600000
Current liabilities
Trade and others payable 195000 195000/1800000*100=10.83 175000
Short term borrowirg 150000 8.33 135000
Accrued Expenses 20000 1.11 18000
Taxes payable 80000 4.45 70000
Total current liabilites 445000 445000/1800000*100=24.72 398000
Total Liabilities 1245000 998000

Total equity and liabilities 1800000 100% 1488000

Income Statement Vertical analysis 2013 sales% 2012 Sales%

Revenue 2500000 100% 2250000 100%

Cost of Sales (1900000) 1900000/2500000*100=(76% (1743000) (77.5)
)
 Gross Profit 600000 600000/2500000*100=24% 507000 22.5%

Other Income 20000 20000/2500000*100=0.8% 18000 0.8%

Distribution cost
Sales saleries -140000 140000/2500000*100=(5.5) (128000) (5.7%)
Adv expenses -20000 0.8% (19000) (0.9)
Total distribution -160000 160000/2500000*100=(6.3) (6.6)
expenses

Admin Expenses
Office salries -170000 (6.8%) (155000) (6.9)
Lease -20000 (0.8%) (20000) (0.9)
Depreciation -40000 (1.6%) (30000) (1.3)
Total admin expneses -230000 230000/2500000*100=(9.2%) (205000) (9.1)

Finance Expenses -35000 (1.4%) (23000) (1.0)

Total other income and -405000 (16.2%) (357000) (15.9)

expenses

Profit before taxes 195000 7.8% 150000 6.6

Income tax expenses -97500 (3.95) (75000) (3.3)

Profit for the year 97500 3.9% 75000 3.3

Horizontal Analysis To calculate percentage change use formula Current – previous /previous

Assets 2013 2012 Amount of % Change

change
Non Current Assets
PPE 1340000 1050000 290000 1340000 -1050000/1050000=27.6
Accumulated Depreciation (140000) (100000) (40000) 40%
Total non current Assets 1200000 950000 250000 1200000-950000/950000=26.3

Current Assets
Inventories 218000 185000 33000 17.8
Trade Receivables 300000 280000 20000 7.1
Prepaid expenses 60000 55000 5000 9.1
Cash & cash equivelants 22000 18000 4000 22.2
Total current assets 600000 538000 62000 11.5
 Total Assetss 1800000 1488000 312000 1800000-1488000/1488000=21

Equity
Share Capital 300000 285000 15000 5.2
Contribution surplus
Retained earnining 255000 205000 50000 24.4
Total other income
Total equity 555000 490000 65000 13.3

Liabilities
Non current liabilities
Long term borrowing 800000 600000 200000 33.33
Current liabilities
Trade and others payable 195000 175000 20000 11.4
Short term borrowirg 150000 135000 15000 11.1
Accrued Expenses 20000 18000 2000 11.1
Taxes payable 80000 70000 10000 14.3
Total current liabilites 445000 398000 47000 11.8
Total Liabilities 1245000 998000 247000 24.7

Total equity and liabilities 1800000 1488000 312000 21

Income statement Horizontal Analysis Current -previous/previous

2013 2012 Amount Change %

of
Change
Revenue 2500000 2250000 250000 2500000-
2250000/2250000=11.1
Cost of Sales (1900000) (1743000) 157000 9
Gross Profit 600000 507000 93000 18.3

Other Income 20000 18000 2000 11.1

Distribution cost
Sales saleries (140000) (128000) (12000) 9.4
Adv expenses (20000) (19000) (1000) 5.3
Total distribution expenses (160000) (147000) 13000 8.8

Admin Expenses
Office salries (170000) (155000) (15000) 9.7
Lease (20000) (20000)
Depreciation (40000) (30000) (10000) 33.33
Total admin expneses (230000) (205000) (25000) 12.2

Finance Expenses (35000) (23000) (12000) 52.2

Total other income and (405000) (357000) (48000) 13.4
expenses

Profit before taxes 195000 150000 45000 30

Income tax expenses (97500) (75000) (22500) 30

Profit for the year 97500 75000 22500 30