Scribd
Upload
116 views15 pages

FINANCIAL ANALYSIS Practice 3

The document is a statement of financial position for ABC Corporation as of December 31, 2019. It shows total assets of $14.55 billion, with current assets of $4.55 billion including $500 million of cash. Total liabilities are $9.61 billion, with current liabilities of $6.61 billion. Shareholders' equity is $4.94 billion. The statement provides a breakdown of asset, liability and equity accounts.

Uploaded by

Hallasgo, Elymar Soriano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
116 views15 pages

FINANCIAL ANALYSIS Practice 3

The document is a statement of financial position for ABC Corporation as of December 31, 2019. It shows total assets of $14.55 billion, with current assets of $4.55 billion including $500 million of cash. Total liabilities are $9.61 billion, with current liabilities of $6.61 billion. Shareholders' equity is $4.94 billion. The statement provides a breakdown of asset, liability and equity accounts.

Uploaded by

Hallasgo, Elymar Soriano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ABC Corporation

Statement of Financial Position


As of December 31, 2019
( In thousands)
ASSETS
2021
Current Assets
Cash and Cash Equivalent 500,000.00
Trade and other Receivables 3,000,000.00
Inventory 1,000,000.00
Prepaid Expenses 50,000.00
Total Current Assets 4,550,000.00
Non Current Assets
Property Plant and Equipment 7,000,000.00
Other Assets 3,000,000.00
10,000,000.00
TOTAL ASSETS 14,550,000.00

LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities
Trade and other payables 4,610,000.00
Other Current Liabilities 2,000,000.00
Total Current Liabilities 6,610,000.00

Non Current Liabilities 3,000,000.00


Total Non Current Liabilities 9,610,000.00

Shareholders Equity
Share Capital at Par 3,000,000.00
Reserve 400,000.00
Retained Earnings 1,540,000.00
Total Shareholders Equity 4,940,000.00
TOTAL LIABILITIES AND SHAREHOLDE - 14,550,000.00
-
VERTICAL HORIZONTAL
analysis Increase Increase
2020 (Decrease) (Decrease)
AMOUNT PERCENTAGE
3.44% 800,000.00 8.25% - 300,000.00 -37.50%
20.62% 1,000,000.00 10.31% 2,000,000.00 200.00%
6.87% 800,000.00 8.25% 200,000.00 25.00%
0.34% 100,000.00 1.03% - 50,000.00 -50.00%
31.27%
0.00% 2,700,000.00 27.84%
0.00% 1,850,000.00 - 68.52%
#DIV/0!
0.00% 0.00% - #DIV/0!
48.11% 5,000,000.00 51.55% 2,000,000.00 40.00%
20.62% 2,000,000.00 20.62% 1,000,000.00 50.00%
68.73% 7,000,000.00 72.16% 3,000,000.00 42.86%
100.00% 9,700,000.00 100.00% 4,850,000.00 50.00%

31.68% 2,000,000.00 20.62% 2,610,000.00 130.50%


13.75% 1,000,000.00 10.31% 1,000,000.00 100.00%
45.43% 3,000,000.00 30.93% 3,610,000.00 120.33%
0.00% 0.00% - #DIV/0!
20.62% 2,000,000.00 20.62% 1,000,000.00 50.00%
66.05% 5,000,000.00 51.55% 4,610,000.00 92.20%
0.00% 0.00% - #DIV/0!
0.00% 0.00% - #DIV/0!
20.62% 3,000,000.00 30.93% - 0.00%
2.75% 300,000.00 3.09% 100,000.00 33.33%
10.58% 1,400,000.00 14.43% 140,000.00 10.00%
33.95% 4,700,000.00 48.45% 240,000.00 5.11%
100.00% 9,700,000.00 100.00% 4,850,000.00 50.00%
-
1
ABC Corporation

Statement of Income
For the Month of December 31, 2019

( In thousands)
VERTICAL

2021
Sales 8,000,000.00
Less Cost of Sales 6,500,000.00 81.25%
Gross Profit 1,500,000.00 18.75%
0.00%
Less Expenses
Selling Expenses 800,000.00 10.00%
Administrative Expenses 500,000.00 6.25%
1,300,000.00 16.25%
Net Income Before Tax 200,000.00 2.50%
0.00%
Less (Minimum Corporate Income Tax 60,000.00 0.75%
Net Income After Tax 140,000.00 1.75%

NET PROFIT MARGIN 1.75%


VERTICAL HORIZONTAL
analysis Increase Increase
(Decrease) (Decrease)
2020 Amount Percentage
10,000,000.00 - 2,000,000.00 -20.00%
6,000,000.00 60.00% 500,000.00 8.33%
4,000,000.00 40.00%
0.00% - 2,500,000.00
- -62.50%
#DIV/0!
- #DIV/0!
700,000.00 7.00% 100,000.00 14.29%
400,000.00 4.00% 100,000.00 25.00%
1,100,000.00 11.00% 200,000.00 18.18%
2,900,000.00 29.00% - 2,700,000.00 -93.10%
0.00% - #DIV/0!
870,000.00 8.70% - 810,000.00 -93.10%
2,030,000.00 20.30% - 1,890,000.00 -93.10%

20.30%
FINANCIAL ANALYSIS

I Liquidity Ratio

1 Working Capital Current Assets - Current Liabilities

2 Current Ratio Current Assets CA


Current Liabilities CL

3 Quick Ratio Current Assets Less Inventory


Current Liabilities

II Solvency Ratio
Total Equity
1 Equity Ratio Total Assets

Total Liabilities
2 Debt Ratio Total Assets

III Efficiency Ratio

1 Account Receivables TurnoSales


Account Receivables

2 Collection Period Sales


Account Receivables Turnover

3 Assets Turnover Ratio Sales


Total Assets

IV Profitability Ratio
Gross Profit
1 Gross Profit Margin Sales

Net Profit
2 Net Profit Margin Sales

3
RATIO
Current Assets Current Liabilities Working Capital
4,550,000.00 - 6,610,000.00 = -2,060,000.00

4,550,000.00
6,610,000.00 = 0.688350983359 2

4,550,000.00 Less 1,000,000.00 = 0.54 1.75


6,610,000.00 -

4,940,000.00 33.95% 75%


14,550,000.00 =

9,610,000.00
14,550,000.00 = 66.05% 25%

8,000,000.00
3,000,000.00 = 2.666666666667

8,000,000.00 = 365 DAYS


3,000,000.00 2.666666666667

8,000,000.00 = #DIV/0!
0.75

1,500,000
8,000,000 = 18.75%

140,000
8,000,000 = 1.75%
IS TO 1

IS TO 1

times

136.88 Days to collect ALARMING


30 DAYS
cents
POTENTIAL PROBLEMS AND SENSITIVITY ANALYSIS FOR DECISION MAKING

POTENTIAL PROBLEM Seriousness Causes Effect Preventive Contingent


H-M-L Measures Action
1 Decrease sales high lack competent losses revisit the policy train the staff

high price promo\

lack of mktg strat Marketing

Migrations

poor service

HCS

EXPENSES

UNSOLD High

UNPAID
Responsible Time Frame

Markeing m NOW
collector NOW

HR NOW

You might also like