Interpretation and verbal analysis compared to industry ratios:1.LiquidityProfitability3.Solvency2. Enrichment Activity 8-1. Financial Statement AnalysisAnalyze the Financial Statements of GnG Mini Mart for 2021 only throughdifferent financial statement ratios. Compare your results to industry ratiosindicated in the next page. Complete the analysis using the ratios provided. Showyour computations.GnG Mini MartStatement of Comprehensive IncomeFor the years ended December 3120212020Sales1,042,500156,375886,125938,250131,355806,895420,900385,995165,435PLess: Sales DiscountsNet SalesPPLess: Cost of Goods Sold468,200P417,925187,356230,56969,171PGross ProfitLess: Operating ExpensesNet Income before TaxPP220,56066,168154,392Less: Income TaxNet Income after TaxP161,398GnG Mini MartStatement of Financial PositionDecember 3120212020AssetsCurrent AssetsCash & cash equivalentsTrade & Other ReceivablesP833,755 P 851,40061,51543,62032,000970,890 P 1,002,21555,50052,11543,200InventoriesPrepaid ExpensesTotal Current AssetsNon Current AssetsProperty, Plant & EquipmentTotal Assets682,500765,800P 1,736,690 P 1,684,715Liabilities & Owner's EquityCurrent LiabilitiesTrade & other payablesP137,200 P144,500Non Current LiabilitiesLoans payable100,000237,200 P150,000294,500Total LiabilitiesOwner's EquityGnG, CapitalTotal Liabilities and Owner's Equity P 1,736,690 P 1,684,7151,499,4901,390,215

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Answered: 1. Liquidity 2. Profitability 3.…

Business

Accounting

1. Liquidity 2. Profitability 3. Solvency

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Data for Lozano Chip Company and its industry averages follow. Calculate the indicated ratios for Lozano. Construct the extended DuPont equation for both Lozano and the industry. Outline Lozano’s strengths and weaknesses as revealed by your analysis. Lozano Chip Company: Balance Sheet as of December 31, 2019 (Thousands of Dollars) Lozano Chip Company: Income Statement for Year Ended December 31, 2019 (Thousands of Dollars)
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