NAME: GANAO, FRANCINE SAYRA S.

SECTION: SAINT MATTHEW

BUSFIN FORMULA

VERTICAL ANALYSIS

Income Statement

Net Sales / Net Sales = Answer x 100

Cost of Good Sold / Net Sales = Answer x 100
Gross Profit / Net Sales = Answer x 100
Expenses / Net Sales = Answer x 100
Operating Income / Net Sales = Answer x 100
Interest Expense / Net Sales = Answer x 100
Net Income / Net Sales = Answer x 100

Balance Sheet

Assets:

Cash / Total Assets = Answer x 100

Accounts Receivable / Total Assets = Answer x 100
Inventories / Total Assets = Answer x 100
Prepaid Rent / Total Assets = Answer x 100
Total Current Assets / Total Assets = Answer x 100
Equipment / Total Assets = Answer x 100
Accumulated Depreciation / Total Assets = Answer x 100
Total Fixed Assets / Total Assets = Answer x 100

Liabilities and Capital:

Accounts Payable / Total Liabilities and Capital = Answer x 100

Notes Payable / Total Liabilities and Capital = Answer x 100
Accruals / Total Liabilities and Capital = Answer x 100
Total Current Liabilities / Total Liabilities and Capital = Answer x 100
Long Term Debt / Total Liabilities and Capital = Answer x 100
Owner’s Capital / Total Liabilities and Capital = Answer x 100

HORIZONTAL ANALYSIS

Current Year – Previous Year / Previous Year x 100

FINANCIAL RATIO

Current Ratio = Current Assets / Current Liabilities

Acid Test Ratio = Cash + Marketable Securities + Accounts Receivable / Current Liabilities
Receivable Turnover = Net Credit Sales / Average Receivable
Age of Receivable = 365 / Receivable Turnover
Inventory Turnover = Cost of Goods Sold / Average of Inventory
Age of Inventory = 365 / Inventory Turnover
Times Interest Earned = Operating Income / Interest Expense
Debt Ratio = Total Liabilities / Total Assets = Answer x 100
Equity Ratio = Total Equity / Total Assets = Answer x 100
Gross Profit Margin = Gross Profit / Net Sales = Answer x 100
Operating Profit Margin = Operating Profit / Net Sales = Answer x 100
Net Profit Margin = Net Income / Net Sales = Answer x 100

Average Receivable = Accounts Receivable Beginning + Accounts Receivable End= Answer / 2

PRO FORMA INCOME STATEMENT

Sales= increased by % ( ex: 1.20)

Costs= is % of sales (increased sales)
Taxable Income= Sales – Costs
Taxes= is % of Taxable Income
Net Income= Taxable Income – Taxes
Dividends= given
Addition to Retained Earnings = Net Income – Dividends

Dividend Payout Ratio= Dividends / Net Income x 100

Plowback Ratio= Addition to Retained Earnings / Net Income x 100

PRO FORMA BALANCE SHEET

Cash and Cash Equivalents= Cash and Cash Equivalents x kung ilan inincrease sa sales
Accounts Receivable = Accounts Receivable x kung ilan inincrease sa sales
Inventory = Inventory x kung ilan inincrease sa sales
Current Assets = Current Assets x kung ilan inincrease sa sales
PPE-NET = PPE-NET x kung ilan inincrease sa sales
Total Assets = Total Assets x kung ilan inincrease sa sales or Current Assets + PPE-NET

Accounts Payable = Accounts Payable x kung ilan inincrease sa sales

Accrued Expenses = Accrued Expenses x kung ilan inincrease sa sales
Notes Payable = remain
Current Liabilities = Current Liabilities x kung ilan inincrease sa sales
Non Current Liabilities= remain
Liabilities = Liabilities x kung ilan inincrease sa sales or Current + Non-Current Liabilities

Common Stock= Remain

Retained Earnings = Addition To Retained Earnings + Retained Earnings
Owners Equity = Common Stock + Retained Earnings
Total Liabilities and Owner’s Equity = Liabilities + Owner’s Equity

External Financing Needs = Total Assets – Total Liabilities and Equity

CASH RECEIPTS

Sales= Remain
Cash Sales= is % of sales
Accounts Receivable are Collected after 1 month= Sales x given % = put the answer next month
AR Collection after 2 months= Sales x given % = put the answer next 2 months
Bank Certificate = given
Cash Receipts= Add from Cash Sales to Bank Certificate

CASH DISBURSEMENT

Purchases = is % of sales
Cash Payment= Sales x given % paid in cash
After 1 Month= Sales x given % = put the answer next month
After 2 Months= Sales x given % = put the answer next 2 months
Monthly Rental = Given
Wages = is % of sales
Fixed Salary= given
Taxes = only put it on the given month
Machinery = only put it on the given month
Interest Payment = given
Principal Payment = only put it on the given month
Total Cash Disbursements = Add from Cash Payment to Principal Payment

Total Sales = Average Receivable x Accounts Receivable Turnover + Net Cash Sales
Sales= Cost Value / given %