Analysis Task #3BGA1 308(1).1.9-01-05 Financial Statement
Analysis Student TemplateFull Ratio Analysis:Graders: Columns L, M,
N are not graded. These columns are for the candidates' benefit to
help them in their decision making for prompt D.Horizontal Analysis
Using Income Statement:Company AComparative Income
StatementsDecember 31, Years 10 and 11Ratio Analysis:Year 11Year
10CommonShort-TermLong-TermRatio:StockholderCreditorCreditorYear
11Year 10Revenues:Current RatioWholesale Credit
Sales1,250,0001,450,000Retail Credit Sales130,000110,000Acid-Test
RatioSales Returns and Allow56,00046,000Sales
Discounts18,75021,750Accounts Receivable TurnoverNet Credit
Sales1,305,2501,492,250Days Sales in ReceivablesCost of Goods
Sold814,200858,000Gross Margin491,050634,250Inventory
TurnoverExpenses:Debt RatioAdministrative Expenses:Office
Supplies9,0007,000Times Interest EarnedOffice Machine
Rental10,0008,000Office Staff Payroll65,00057,000Rate of return on
net salesSelling Expenses:Rate of return on total
assetsAdvertising95,000125,000Sales Base Pay96,00085,000Rate of
return on commonSales Commission52,21059,690stockholders
equityAirfare41,00056,000Miscellaneous6,0005,500Earnings per
shareDepreciation Expense45,00045,000Price/earnings ratioTotal
Expenses419,210448,190Book value per share ofIncome from
Operations71,840186,060common stock.Interest40,00033,000Net Income
(Loss)31,840153,060Vertical Analysis Using Balance Sheet:Company
AComparative Balance SheetsDecember 31, Years 10 and 11Year 11Year
10AssetsCalculationsCalculationsCurrent
Assets:Cash387,000389,997Accounts Receivable156,00099,000Prepaid
Insurance20,00030,000Raw Materials Inventory20,00050,000Work in
Process Inventory26,00032,000Finished Goods
Inventory58,00060,000Total Current Assets:667,000660,997Prop.,
Plant, &
Equip.:Land382,000210,000Building822,000600,000Manufacturing
Equipment140,000140,000Intangible Assets:Patents15,00018,000Total
Prop, Plant, & Equipment1,359,000968,000Total
Assets2,026,0001,628,997LiabilitiesCurrent Liabilities:Accounts
Payable80,00021,000Notes Payable19,00026,893Total Current
LiabilitiesLong-Term Liabilities:Notes Payable78,00019,000Mortgage
Payable860,000534,000Stockholders Equity:Common Stock ($.50
Par)150,000150,000Paid in Capital in Excess of
Par600,000600,000Retained Earnings239,000278,104Liabilities and
Equity2,026,0001,628,997
Requires a computation for average A/R so Year 10 cannot be
completed due to insufficient data.
Requires a computation of average accounts receivable so Year
10 cannot be completed due to insufficient data
Requires a computation for average inventory so Year 10 cannot
be completed due to insufficient data
Requires a computation for average total assets so Year 10
cannot be completed due to insufficient data
Requires a computation for average common stockholder's equity
so Year 10 cannot be completed due to insufficient data
Requires current market price so Year 10 cannot be
computed
Requires current market price so Year 10 cannot be
computed
