NAME: Daniela Muñoz – Mateo Serrano – Yovanny Paez

INTERPRETATION OF VERTICAL ANALYSIS

BALANCE SHEET

GENERAL ANALYSIS:

 • The 26.18% of the assets of the Company concentrated on current assets.

 • The 69.82% of the assets of the Company are non-current assets.

 • 4.31% of the assets of the Company are appreciations

 • The 58.89% of the assets of the Company were financed by current liabilities.

 • The 41.21% of the company's assets were financed by non-current liabilities

 • The 51.94% of the assets of the Company were funded by Heritage.

SPECIFIC ANALYSIS

 • The 26.16% of total current assets were generated in Accounts Receivable from

Clients Company.

 • The 17.71% of total current assets were used in inventories of goods not

manufactured by the company

 • The 34.87% of total non-current assets used in hotels and restaurants equipment

 • The 55.90% of total non-current assets were used in accounts receivable from

related parties

 • The 16.83% of Total Current Liabilities were generated in the domestic banks

Account

 • The 65.29% of the total generated Heritage in capital surplus

CONCLUSIONS

• A significant portion of the assets of the Company is in the account receivable

which means that more than one quarter, 26.16% of the profits of the company are

in outstanding charges to Customers.

• The 17.71% of Merchandise Inventories were generated by economic activity

means that the company is solvent.

• The 58.89% of total liabilities, this means that the company spends a lot.

• The 65.29% of Heritage, this means that the company is profitable.

STATE P & L

GENERAL ANALYSIS

• 50% of Company revenues were used in Cost of Sales.

• The 42.03% of the Company revenues were used in Operating Expenses.

• The 2.22% of Company revenues correspond to Net Income.

SPECIFIC ANALYSIS

• The 96.98% of the revenues generated by the Company Sales.

CONCLUSIONS:

• Most of the revenues generated by the Company economic activity means that it is

solvent.
 • The 42.03% of Company revenue covers the cost which means that overspends.

INTERPRETATION OF HORIZONTAL ANALYSIS

BALANCE SHEET

GENERAL ANALYSIS:

• Total assets increased 0.7% equivalent to USD $ 416,434

• Non-current assets decreased by 0.5% which equates to USD $ 219,914

• The total liabilities decreased 3% equivalent to USD $ 822,569

• Non-current liabilities decreased by 24.2% which equates to USD $ 3,540,204.

• Current liabilities increased 20.7% which equates to USD $ 2,717,635

SPECIFIC ANALYSIS

• Accounts Receivable had a decrease of 71.8% which equates to USD $ 1,314,797

• Prepaid expenses decreased 83.3%, equivalent to USD $ 514,525

• Temporary investments had an increase of 420.2% equivalent to USD $ 1,566,548

• Property, Plant and Equipment had an increase of 47.9% equivalent to USD $

3,371,367

• Financial Bonds had a decrease of 15.4% equivalent to USD $ 489,562

• Payables had an increase of 37.7% equivalent to USD $ 1,108,789

• Taxes, fees and charges payable had a decrease of 38.1% equivalent to USD $

264,130

• Labor obligations had an increase of 24.4% equivalent to USD $ 115,001

 • Provision Estimated liabilities and had a 66.8% increases equivalent to USD $

1,927,883

• Social Capital had a decrease of 3.8%, equivalent to USD $ 1,860,114

• Retained earnings had an increase of 216.2% equivalent to USD $ 1,649,905

STATE P & L

GENERAL ANALYSIS

• In 2013 the total cost of sales increased 16.30%, equivalent to USD $ 6,240,023

• In 2013 total operating expenses increased 15.47%, equivalent to USD $ 636,151

• In 2013 the result of the year increased 216.18% equivalent to USD $ 1,649,905

SPECIFIC ANALYSIS

• In 2013 the total of other non-operating income decreased 19.05% equivalent to

USD $ 167,160

• In 2013 the total of other non-operating expenses decreased 12.77% equivalent to

USD $ 414,690

CONCLUSIONS

• EBITDA (operating income before interest, taxes, depreciation and amortization)

continued its upward trend during 2013, showing the efficiencies achieved in all business

areas.
• The cost of sales on operating income ratio fell by two points in 2013 from 41% in 2012

to 39% last year. During the last 6 years Procafecol has managed to decrease its percentage

of cost of sales significantly from 46% in 2008 to 39% in 2013.

• At the end of 2013, Procafecol continued to generate positive net profit over the four

quarters of the year, for a total of $ 4,509 million, an increase of $ 3,137 million and an

increase of 229% compared to the year 2012, this being the best year financially for

Procafecol since its inception.