Balance Sheet Horizontal Analysis*

Assets Peso Change

2019 2020 2020
Current Assets
Cash 39,700.00 27,500.00 -12,200.00
Marketable securities 1,000.00 11,000.00 10,000.00
Accounts Receivable 81,500.00 72,700.00 -8,800.00
Inventories 181,300.00 242,000.00 60,700.00
Total current assets 303,500.00 353,200.00 49,700.00
Fixed Assets:
Land 112,000.00 112,000.00 0.00
Plant & equipment (net) 445,200.00 464,800.00 19,600.00
Total fixed assets 557,200.00 576,800.00 19,600.00
Other assets 13,300.00 21,500.00 8,200.00
Total assets 874,000.00 951,500.00 77,500.00

Liabilities and Equity

2019 2020
Current liabilities:
Accounts payable 71,200.00 83,000.00 11,800.00
Notes payable 50,000.00 140,000.00 90,000.00
Accrued Expenses 33,400.00 36,300.00 2,900.00
Total current liabilities 154,600.00 259,300.00 104,700.00
Long-term debt:
Mortgage payable 106,000.00 90,800.00 -15,200.00
Equity
Common stock, 2,000 shares 225,000.00 230,000.00 5,000.00
outstanding
Retained earnings 388,400.00 371,400.00 -17,000.00
Total Equity 613,400.00 601,400.00 -12,000.00
Total Liabilities and Equity 874,000.00 951,500.00 77,500.00

*2019 is the base year for horizontal analysis

** Total Assets is the base item for the Balance Sheet
Horizontal Analysis* Vertical Analysis**
Percentage
2019 2020
Change
2020

-30.73% 4.54% 2.89%

1000.00% 0.11% 1.16%
-10.80% 9.32% 7.64%
33.48% 20.74% 25.43%
16.38% 34.73% 37.12%

0.00% 12.81% 11.77%

4.40% 50.94% 48.85%
3.52% 63.75% 60.62%
61.65% 1.52% 2.26%
8.87% 100.00% 100.00%

16.57% 8.15% 8.72%

180.00% 5.72% 14.71%
8.68% 3.82% 3.82%
67.72% 17.69% 27.25%

-14.34% 12.13% 9.54%

2.22% 25.74% 24.17%

-4.38% 44.44% 39.03%
-1.96% 70.18% 63.21%
8.87% 100.00% 100.00%
 Income Statement Horizontal Analysis*
Peso Change
2019 2020 2020
Net Sales 900,893.00 990,982.30 90,089.30
Cost of Goods Sold (excluding depreciatio 709,000.00 781,100.00 72,100.00
Gross Margin 191,893.00 209,882.30 17,989.30
Expenses
Selling Expenses 82,912.20 89,545.18 6,632.98
General and Administrative Expense 30,104.43 33,415.92 3,311.49
Other Expenses 22,200.00 25,000.00 2,800.00
Interest on debt 9,700.00 14,300.00 4,600.00
Depreciation 31,500.00 32,200.00 700.00
Total Expenses 176,416.63 194,461.10 18,044.47
Profit (loss) before taxes 15,476.37 15,421.20 -55.17
Income Tax Expense 6,500.08 6,476.91 -23.17
Net income (loss) 8,976.29 8,944.29 -32.00

*2019 is the base year for horizontal analysis

** Net Sales is the base item for the Income Statement
orizontal Analysis* Vertical Analysis**
Percentage
Change 2019 2020
2020
10.00% 100.00% 100.00%
10.17% 78.70% 78.82%
9.37% 21.30% 21.18%

8.00% 9.20% 9.04%

11.00% 3.34% 3.37%
12.61% 2.46% 2.52%
47.42% 1.08% 1.44%
2.22% 3.50% 3.25%
10.23% 19.58% 19.62%
99.64% 1.72% 1.56%
-0.36% 0.72% 0.65%
-0.36% 1.00% 0.90%
 [A] Liquidity Ratios
1 Current Ratio Write down your
Current Assets 353,200.00
Current Liabilities 259,300.00 1.36
2 Quick Ratio
Current Assets-
Inventory-
Prepayments 111,200.00
Current Liabilities 259,300.00 0.43
3 Cash Ratio
Cash 27,500.00
Current Liabilities 259,300.00 0.11
4 NWC to Total Assets
Net Working Capital 93,900.00
Total Assets 951,500.00 0.10

[B] Solvency Ratios

1 Total Debt Ratio
Total Liabilities 350,100.00
Total Assets 951,500.00 36.79%
2 Debt-Equity Ratio
Total Debt 350,100.00
Total Equity 601,400.00 0.58
3 Long-Term Debt Ratio
Long-Term Debt 90,800.00
Total Assets 951,500.00 9.54%
4 Times Interest Earned Ratio
EBIT 29,721.20
Interest Expense 14,300.00 2.08 times

[C] Profitability Ratios

1 Profit Margin
Net- Income 8,944.29
Sales 990,982.30 0.90%
2 Return on Assets
Net-Income 8,944.29
Total Assets 951,500.00 0.94%
3 Return on Equity
Net- Income 8,944.29
Total Equity 601,400.00 1.49%
4 Earnings per Share
Net-Income -
Preferred
Dividends** 8,944.29
No. of Shares
Outstanding 2000 4.472145
** If there is dividends available for preference shareholders

[D] Asset Utilization Ratios

1 Inventory turnover
 Cost of Goods Sold 781,100.00
Average Inventory 211,650.00 3.69 times
2 Days Sales in Inventory
365 days 365
Inventory Turnover 3.69 98.90
3 Receivable Turnover
Credit Sales 990,982.30
Average Accounts
Receivable 77100 12.85 times
4 Collection Period/DSO
365 days 365
Receivable Turnover 12.85 28.40
5 NWC Turnover
Sales 990,982.30
Net-Working Capital 93,900.00 10.55 times
6 Fixed Asset Turnover
Sales 990,982.30
Net-Fixed Assets 464,800.00 2.13 times
7 Total Asset Turnover
Sales 990,982.30
Total Assets 951,500.00 1.04 times
ite down your general interpretations of the financial