ABC Company

Comparative Income Statement

For the year ended December 31

HORIZONTAL ANALYSIS Percentage

2022 2021 Peso Change Change

Revenue 120,000.00 100,000.00 20,000.00 20.00%

Cost of Sales 60,000.00 50,000.00 10,000.00 20.00%
Gross Profit 60,000.00 50,000.00 10,000.00 20.00%

Rent Expense 5,500.00 5,000.00 500.00 10.00%

Depreciation Expense 3,600.00 2,500.00 1,100.00 44.00%
Salaries Expense 5,400.00 3,000.00 2,400.00 80.00%
Utilities Expense 2,500.00 1,500.00 1,000.00 66.67%
Net profit before interest and tax 43,000.00 38,000.00 5,000.00 13.16%

Interest Expense 5,400.00 3,000.00 2,400.00 80.00%

Income Tax 6,000.00 5,000.00 1,000.00 20.00%
Net profit after interest and tax 31,600.00 30,000.00 1,600.00 5.33%

ABC Company
Comparative Income Statement
For the year ended December 31

VERTICAL ANALYSIS 2022 2021 2022 2021

Revenue 120,000.00 100,000.00 100.00% 100.00%

Cost of Sales 60,000.00 50,000.00 50.00% 50.00%
Gross Profit 60,000.00 50,000.00 50.00% 50.00%

Rent Expense 5,500.00 5,000.00 4.58% 5.00%

Depreciation Expense 3,600.00 2,500.00 3.00% 2.50%
Salaries Expense 5,400.00 3,000.00 4.50% 3.00%
Utilities Expense 2,500.00 1,500.00 2.08% 1.50%
Net profit before interest and tax 43,000.00 38,000.00 35.83% 38.00%

Interest Expense 5,400.00 3,000.00 4.50% 3.00%

Income Tax 6,000.00 5,000.00 5.00% 5.00%
Net profit after interest and tax 31,600.00 30,000.00 26.33% 30.00%

ABC Company
Comparative Balance Sheet
For the year ended December 31

HORIZONTAL ANALYSIS 2022 2021 Percentage

Peso Change Change
Assets
Current Assets 110,000.00 90,000.00 20,000.00 22.22%
Cash 30,000.00 20,000.00 10,000.00 50.00%
Accounts Receivable 40,000.00 35,000.00 5,000.00 14.29%
Inventory
Non-current assets
Property Plant and Equipment 50,000.00 40,000.00 10,000.00 25.00%
Land 20,000.00 15,000.00 5,000.00 33.33%
Total Assets 250,000.00 200,000.00 50,000.00 25.00%

Liabilities
Current Liabilities
Accounts Payable 75,000.00 60,000.00 15,000.00 25.00%
Unearned Revenue 25,000.00 10,000.00 15,000.00 150.00%
Non-current Liabilities
Bank Loan 50,000.00 40,000.00 10,000.00 25.00%
Total Liabilities 150,000.00 110,000.00 40,000.00 36.36%

Stockholders' Equity
Share capital 80,000.00 75,000.00 5,000.00 6.67%
Retained Earnings 20,000.00 15,000.00 5,000.00 33.33%
Total Equity 100,000.00 90,000.00 10,000.00 11.11%

ABC Company
Comparative Balance Sheet
For the year ended December 31

VERTICAL ANALYSIS 2022 2021 2022 2021

Assets
Current Assets 110,000.00 90,000.00 44.00% 45.00%
Cash 30,000.00 20,000.00 12.00% 10.00%
Accounts Receivable 40,000.00 35,000.00 16.00% 17.50%
Inventory
Non-current assets
Property Plant and Equipment 50,000.00 40,000.00 20.00% 20.00%
Land 20,000.00 15,000.00 8.00% 7.50%
Total Assets 250,000.00 200,000.00 100.00% 100.00%

Liabilities
Current Liabilities
Accounts Payable 75,000.00 60,000.00 30.00% 30.00%
Unearned Revenue 25,000.00 10,000.00 10.00% 5.00%
Non-current Liabilities
Bank Loan 50,000.00 40,000.00 20.00% 20.00%
Total Liabilities 150,000.00 110,000.00 60.00% 55.00%

Stockholders' Equity
Share capital 80,000.00 75,000.00 32.00% 37.50%
Retained Earnings 20,000.00 15,000.00 8.00% 7.50%
Total Equity 100,000.00 90,000.00 40.00% 45.00%