VERTICAL AND HORIZONTAL ANALYSIS ACTIVITY

HORIZONTAL ANALYSIS OF A BALANCE SHEET

ABC Corporation
Condensed Balance Sheet
December 31

Assets 2019 2020 Amount Percentage Change

Current Assets Php. 74000 Php. 80,000 6,000 8.11%
Property, plant & Equipment (net) 99,000 90,000 (9,000) -9.09%
Intangibles 27,000 40,000 13,000 48.15%
Total Assets Php. 200,000 Php. 210,000 10,000 5%

Liabilities and Stockholder's equity

Current Liabilities Php. 42,000 Php. 48,000 6,000 14.29%
Long-term Liabilities 143,000 150,000 7,000 4.90%
Stockholder's equity 15,000 12,000 (3,000) -20%
Total Liabilities and Equity Php. 200,000 Php. 210,000 10,000 5%

HORIZONTAL ANALYSIS OF AN INCOME STATEMENT

ABC Corporation
Condensed Income Statements
For the Years Ended December 31

2019 2020 Amount Percentage Change

Net Sales Php. 600,000 Php. 500,000 (100,000) -16.67%
Cost of Goods Sold 483,000 420,000 (63,000) -13.04%
Gross Profit 117,000 80,000 (37,000) 31.62%
Operating Expenses 57,200 44,000 (13,200) -23.08%
Net Income Php. 59,800 Php. 36,000 (23,800) -39.80%
 VERTICAL ANALYSIS OF A BALANCE SHEET

ABC Corporation
Condensed Balance Sheet
December 31, 2020

   
  Amount Percent
Assets  
Current Assets Php. 74,000  37%
Property, Plant & Equipment (net) 99,000  49.5%
Intangibles 27,000  13.5%
Total Assets Php. 200,000  100%
Liabilities & Stockholder's Equity  
Current Liabilities Php. 42,000  21%
Long-Term Liabilities 143,000  71.5%
Stockholder's Equity 15,000  7.5%
Total Liabilities & Stockholder's Equity Php. 200,000  100%
     

VERTICAL ANALYSIS OF AN INCOME STATEMENT

ABC Corporation
Condensed Income Statements
For the Years Ended December 31

 
  2019 2020
  Amount Percent Amount Percent
Net Sales Php. 600,000  100% Php. 500,000  100%
Cost of Goods Sold 483,000  80.5% 420,000  84%
Gross Profit 117,000  19.5% 80,000  16%
Operating Expenses 57,200  9.53% 44,000  8.8%
Net Income Php. 59,800  9.97% Php. 36000  7.2%