ROMBLON STATE UNIVERSITY

Odiongan, Romblon

COLLEGE OF BUSINESS AND ACCOUNTANCY

Financial Analysis & Reporting

Name Date Rating

Course Year Time Score

I. VERTICAL ANALYSIS OF COMPARATIVE STATEMENTS

Illustrative Example:

2015 2015 2014 2014

Assets Percentage Percentage
Current Assets
Cash & Cash Equivalent P 106,789 10.53 P 102,375 10.59
Trade & Other 327,611 32.31 277,467 28.71
Receivables
Inventory 334,863 33.02 297,654 30.80
Prepaid Expenses 101,565 10.02 114,813 11.88
Total Current Assets P 870,828 85.87 P 792,309 81.99

Non-Current Asset
Property, Plant & P 135,754 13.39 P 166,481 17.23
Equipment
Intangibles 7,500 0.74 7,500 0.78
TOTAL ASSETS P 1,014,082 100% P 966,290 100%

Liabilities and
Shareholders’ Equity
Current Liabilities
Trade & Other Payables P 238,000 23.47 P 208,703 21.60
Unearned Revenues 107,508 10.60 82,456 8.53
Notes payable 45,000 4.44 45,000 4.66
Total current liabilities P390,508 38.51 P336,159 34.79
Non-Current Liabilities
Notes Payable-non-current 208,422 20.55 253,500 26.23
TOTAL LIABILITIES P 598,930 59.06 P 589,659 61.02

Shareholders’ Equity
Preference Shares,
P100 par 105,000 10.35 105,000 10.87
Ordinary Shares, P1 par 15,000 1.48 15,000 1.55
Premium on Ordinary 135,000 13.31 135,000 13.97
Shares
Total paid-in-capital 255,000 25.15 255,000 26.39

Retained Earnings 160,152 15.79 121,631 12.59

Total Shareholders’ 415,152 40.94 376,631 38.98
 Equity
Total Liabilities &
Shareholders’ Equity P 1,014,082 100% P 966,290 100%

2015 2014
Sales P 3,007,887 100% P 2,732,712 100%
Less: Cost of good sold 2,208,520 73.42 1,964,865 71.90
Gross Profit 799,367 26.58 767,847 28.10
Less: Distribution Costs 372,000 12.37 345,000 12.62
Administrative 207,000 6.88 213,000 7.79
Expenses
Total Operating 579,000 19.25 558,000 20.42
Expenses
Operating Income 220,367 7.33 209,847 7.68
Less: Interest Expense 41,860 1.39 43,905 1.61
Net income before taxes 178,507 5.93 165,942 6.07
Less: Income Tax 62,477 2.08 58,080 2.13
Net Income after taxes 116,030 3.86 107,862 3.95
Dividends:
Preference Shares 8,400 0.28 8,400 0.31
Ordinary Shares 60,000 1.99 48,000 1.76
Total Dividend paid 68,400 2.27 56,400 2.06
Net Income closed to 47,630 1.58 51,462 1.88
Retained Earnings
Retained Earnings, January 112,522 3.74 70,169 2.57
1
Retained Earnings, 160,152 5.32 121,631 4.45
December 31

In your Analysis you will use the following format:

1. On Vertical Analysis:
1.1 Vertical Analysis Computation
1.2 Analysis and interpretation of your findings