ROMBLON STATE UNIVERSITY

Odiongan, Romblon

COLLEGE OF BUSINESS AND ACCOUNTANCY

Financial Analysis & Reporting

Name Date Rating

Course Year Time Score

I. HORIZONTAL ANALYSIS OF COMPARATIVE STATEMENTS

Concept Application:

SHARP Corporation
Comparative Statements of Financial Position
December 31, 2016
(in Thousand pesos)
Increase (decrease)
2016 2015 AMOUNT PERCENT
Assets
Current Assets
Cash & Cash Equivalent P 24,890 P 2,120
Held for Trading 10,000
Trade & Other Receivables 16,000 6,000
Inventory 8,960 10,600
Total Current Assets P 59,850 P 18,720

Non-Current Asset
Property, Plant & Equipment P 150,000 P 161,280
Intangibles 16,000 20,000
Total Non-current Asset 166,000 181,280
TOTAL ASSETS P 225,850 P 200,000

Liabilities and Shareholders’ Equity

Current Liabilities
Trade & Other Payables P 8,400 P 3,350
Unearned Revenues 10,600 11,650
Notes payable – current 900 600
Total current liabilities P19,900 P15,600
Non-Current Liabilities
Notes Payable-non-current 73,550 100,000
TOTAL LIABILITIES P 93,450 P 115,600

Shareholders’ Equity
Ordinary Shares, P100 par 80,000 60,000
Premium on Ordinary Shares 16,000 10,000
Total paid-in-capital 96,000 70,000

Retained Earnings 36,400 14,400

TOTAL SHAREHOLDERS’ 132,400 84,400
EQUITY
TOTAL LIABILITIES &
SHAREHOLDERS’ EQUITY P 225,850 P 200,000

SHARP Corporation
Comparative Income Statements
For the years ended December 31, 2016 & 2015

Increase (decrease)
2016 2015 AMOUNT PERCENT
Sales P 480,000 P 400,000
Less: Cost of good sold 364,000 280,000
Gross Income 116,000 120,000
Add: Other Income 15,000 9,600
Total Income 131,000 129,600
Less: Other Expenses 12,400
Finance Costs (Interest) 14,400 19,000
Total Expenses 26,800 19,000
Net Income before taxes 104,200 110,600
Less: Income Tax 32,334 35,392
Net income after taxes 71,866 75,208

In your Analysis you will use the following format:

1. On Horizontal Analysis:
1.1 Horizontal Analysis Computation
1.2 Analysis and interpretation of your findings
*Liquidity & Solvency
*Stability or Long-term Financial Position
*Operating Efficiency and Profitability
1.3 Conclusion
1.5 State your recommendations