Cebu Technological University

College of Management and Entrepreneurship

Business Finance
st
1 Semester; A.Y. 2021-2022

Activity No. 6 – Trend Percentage and Vertical Analysis

Name:Ivy Dianne L. Santisas Date: December 14, 2021

(Family Name, Given Name Middle Initial)

Course and Year: BSTM 1-A Class Schedule: MON 1:00-4:00PM

Below are the Statement of Financial Position and Statement of Result of Operation of JFC for the
Years 2012 to 2014. Perform a Trend Percentage and Vertical analyses on both statements. Put your
answers on the provided format below.

ASSETS 2014 2013 2012

Current Assets
Cash 7,618,000 9,903,000 8,848,000
Receivables 7,479,000 3,128,000 2,715,000
Inventories 5,972,000 3,560,000 2,630,000
Other current assets 2,952,000 1,793,000 1,430,000
24,021,000 18,384,000 15,623,000
Non-current Assets
Property, plant, and equipment 13,363,000 11,772,000 11,059,000
Financial Investments 3,410,000 3,353,000 3,139,000
Other non-current assets 13,324,000 12,517,000 11,947,000
30,097,000 27,642,000 26,145,000
TOTAL ASSETS 54,118,000 46,026,000 41,768,000

LIABILITIES
Current Liabilities
Accounts Payable 6,575,000 6,006,000 4,714,000
Income Tax Payable 182,000 155,000 79,000
Short-term Debt 865,000 - -
Other current liabilities 11,468,000 9,457,000 11,828,000
19,090,000 15,618,000 16,621,000
Non-current Liabilities
Long-term Debt 716,000 4,063,000 855,000
Other Liabilities 6,234,000 2,984,000 2,561,000
6,950,000 7,047,000 3,416,000
TOTAL LIABILITIES 26,040,000 22,665,000 20,037,000
EQUITY
Capital stock 1,064,000 1,051,000 1,047,000
Additional Paid-in Capital 4,452,000 3,640,000 3,284,000
Retained Earnings 22,646,000 19,017,000 17,871,000
Other Equity Accounts (84,000) (347,000) (471,000)
TOTAL EQUITY 28,078,000 23,361,000 21,731,000
TOTAL LIABILITIES AND EQUITY 54,118,000 46,026,000 41,768,000

2014 2013 2012

Sales Revenue PHP 90,671,000 PHP 80,283,000 PHP 71,059,000
Cost of Sales/Service 73,728,000 65,285,000 58,435,000
Gross Margin 16,943,000 14,998,000 12,624,000
Operating Expenses 10,806,000 9,067,000 8,279,000
Operating Profit 6,137,000 5,931,000 4,345,000
Other Income 748,000 431,000 567,000
Other Expenses 126,000 116,000 51,000
Net Income Before Tax 6,759,000 6,246,000 4,861,000
Income Tax 1,271,000 1,523,000 1,149,000
NET INCOME AFTER TAX PHP 5,488,000 PHP 4,723,000 PHP 3,712,000

A. Trend Percentage Approach

ASSETS 2014 2013 2012

Current Assets
Cash 76.9% 111.9% 100.0%
Receivables 239.1% 115.2% 100.0%
Inventories 167.8% 135.4% 100.0%
Other current assets 164.6% 125.4% 100.0%
130.7% 117.7% 100.0%
Non-current Assets
Property, plant, and equipment 113.5% 106.4% 100.0%
Financial Investments 101.7% 106.8% 100.0%
Other non-current assets 106.4% 104.8% 100.0%
108.9% 105.7% 100.0%
TOTAL ASSETS 117.6% 110.2% 100.0%

LIABILITIES
Current Liabilities
Accounts Payable 109.5% 127.4% 100.0%
Income Tax Payable 117.4% 196.2% 100.0%
Short-term Debt 100.0% - -
Other current liabilities 121.3% 80.0% 100.0%
122.2% 94.0% 100.0%
Non-current Liabilities
Long-term Debt 17.6% 475.2% 100.0%
Other Liabilities 208.9% 116.5% 100.0%
98.6% 206.3% 100.0%
TOTAL LIABILITIES 114.9% 113.1% 100.0%
EQUITY
Capital stock 101.2% 100.4% 100.0%
Additional Paid-in Capital 122.3% 110.8% 100.0%
Retained Earnings 119.1% 106.4% 100.0%
Other Equity Accounts 24.2% 73.7% 100.0%
TOTAL EQUITY 120.2% 107.5% 100.0%
TOTAL LIABILITIES AND EQUITY 117.6% 110.2% 100.0%

2014 2013 2012

Sales Revenue 112.9% 113.0% 100.0%
Cost of Sales/Service 112.9% 111.7% 100.0%
Gross Margin 113.0% 118.8% 100.0%
Operating Expenses 119.2% 109.5% 100.0%
Operating Profit 103.5% 136.5% 100.0%
Other Income 173.5% 76.0% 100.0%
Other Expenses 108.6% 227.5% 100.0%
Net Income Before Tax 108.2% 128.5% 100.0%
Income Tax 83.5% 132.6% 100.0%
NET INCOME AFTER TAX 116.2% 127.2% 100.0%

B. Vertical Analysis

ASSETS 2014 2013 2012

Current Assets
Cash 14.1% 21.5% 21.2%
Receivables 13.8% 6.8% 6.5%
Inventories 11.0% 7.7% 6.3%
Other current assets 5.5% 3.9% 3.4%
44.4% 39.9% 37.4%
Non-current Assets
Property, plant, and equipment 24.7% 25.6% 26.5%
Financial Investments 6.3% 7.3% 7.5%
Other non-current assets 24.6% 27.2% 28.6%
55.6% 60.1% 62.6%
TOTAL ASSETS 100.0% 100.0% 100.0%

LIABILITIES
Current Liabilities
Accounts Payable 12.1% 13.0% 11.3%
Income Tax Payable 0.3% 0.3% 0.2%
Short-term Debt 1.6% - -
Other current liabilities 21.2% 20.5% 28.3%
35.3% 33.9% 39.8%
Non-current Liabilities
Long-term Debt 1.3% 8.8% 2.0%
Other Liabilities 11.5% 6.5% 6.1%
12.8% 15.3% 8.2%
TOTAL LIABILITIES 48.1% 49.2% 48.0%
EQUITY
Capital stock 2.0% 2.3% 2.5%
Additional Paid-in Capital 8.2% 7.9% 7.9%
Retained Earnings 41.8% 41.3% 42.8%
Other Equity Accounts -0.2% -0.8% -1.1%
TOTAL EQUITY 51.9% 50.8% 52.0%
TOTAL LIABILITIES AND EQUITY 100.0% 100.0% 100.0%
 2014 2013 2012
Sales Revenue 100.0% 100.0% 100.0%
Cost of Sales/Service 81.3% 81.3% 82.2%
Gross Margin 18.7% 23.0% 17.8%
Operating Expenses 11.9% 11.3% 11.7%
Operating Profit 6.8% 7.4% 6.1%
Other Income 0.8% 0.5% 0.8%
Other Expenses 0.1% 0.1% 0.1%
Net Income Before Tax 7.5% 7.8% 6.8%
Income Tax 1.4% 1.9% 1.6%
NET INCOME AFTER TAX 7.4% 5.9% 5.2%