Vertical

Analysis
 DEF COMPANY
STATEMENT OF FINANCIAL
POSITION
AS OF DECEMBER 31,2016
ASSETS
Cash P500,000 34.96%
Accounts 80,000 5.59%
Receivable
Inventory 60,000 4.19%
Land 700,000 48.95%
 Patent 90,000 6.29%
Total Assets P1,430,000 100%
LIABILITIES
Accounts 400,00 27.97%
Payable
Notes Payable 250,000 17.48%
Total Liabilities 650,000 45.45%
OWNER'S EQUITY
X, Capital 780,000 54.54%
Total Liabilities and P1,430,000 100%
Owner's Equity
 INTERPRETION
Based on the analysis that has been made, It is
good that the owner's equity is higher than the
liabilities that DEF Company had. DEF Company's
total capital is 54.54% which is about half of the
basis and its liabilities is just 45.45%. This just
means that the company were able to generate
sufficient cash to pay their certain obligations
which makes it good for a company
 DEF COMPANY
STATEMENT OF COMPREHENSIVE INCOME
AS OF DECEMBER 31,2016
Net Sales P950,000 100%
Less: Cost Of
Goods Sold
(180,000) 18.94%
Gross Profit 770,000 81.05%

Less: Operating (180,000)

Expense
18.94%
Operating Income 590,000 62.10%

Less: Interest (25,000)

2.63%
Expense

Net Income before

565,000 59.47%
Tax

(180,000)
Less: Income Tax 18.94%

P385,000
Net Income 40.52%
 INTERPRETATION
Being an analyst, basing from the computation of
vertical analysis for the Statement of Comprehensive
Income for the year ended December 31,2016, the
company is healthy and is performing well. If we are about
to compare the expenses from the net sale, I can say that
DEF Company can minimize its expenses while the Net
Income ranges to 40.56% that is almost half of the Net
Sales is good. DEF had passed my standard being an
analyst.
Leader: Nicolle Jane C. Ignacio
Members: Kathleen Anne A.
Bauxon
Rosechelle Paclarin
Robelee Prado
Jerica Vibar
Joyce Roque
Airies Nicolas
Rodolfo Marcelino
Relen Pascua
Emmanuel Tomines