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20-PY Balance Sheet Accounts (Dec. 31) Cash 20-CY Income Statement Accounts (Dec. 31) 283,000 150,000 Sales Marketable Securities 1,000,000 850,000 Sales Returns and Allowances Accounts Receivable, net 1,000,000 500,000 Inventory, Dec. 31, 20-CY Inventory, Dec. 31, 20-PY nventories 500,000 750,000 Land Building, net Machinery and Equipment, net 500,000 500,000 Purchases 500,000 550,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 1,500,000 1,700,000 Soodwill 400,000 400,000 Other Assets lotes Payable, Trade CCounts Payable, net Expenses Payable Long-term Notes 5% Preferred Stock, P100 par 90,000 100,000 150,000 100,000 790,000 610,000 40,000 60,000 2,250,000 2,500,000 500,000 500,000 1,500,000 Common Stock, P10 par Retained Earnings 1,500,000 523,000 250,000 ditional Information: There are only 300 business days during the year. Income Taxes, 30% equired: Prepare a comparative Balance Sheet for 20-PY and 20-CY and an Income Statement. Perform a horizontal analysis for the comparative balance sheet showing the peso and percentage changes of each iten Perform a vertical analysis showing the ratio of each item of the income statement to Sales and each item of the compar Total Assets, Total Liabilities, and Stockholders' Equity. Perform a ratio analysis using the items from the comparative balance sheet and income statements to evaluate the f

20-PY Balance Sheet Accounts (Dec. 31) Cash 20-CY Income Statement Accounts (Dec. 31) 283,000 150,000 Sales Marketable Securities 1,000,000 850,000 Sales Returns and Allowances Accounts Receivable, net 1,000,000 500,000 Inventory, Dec. 31, 20-CY Inventory, Dec. 31, 20-PY nventories 500,000 750,000 Land Building, net Machinery and Equipment, net 500,000 500,000 Purchases 500,000 550,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 1,500,000 1,700,000 Soodwill 400,000 400,000 Other Assets lotes Payable, Trade CCounts Payable, net Expenses Payable Long-term Notes 5% Preferred Stock, P100 par 90,000 100,000 150,000 100,000 790,000 610,000 40,000 60,000 2,250,000 2,500,000 500,000 500,000 1,500,000 Common Stock, P10 par Retained Earnings 1,500,000 523,000 250,000 ditional Information: There are only 300 business days during the year. Income Taxes, 30% equired: Prepare a comparative Balance Sheet for 20-PY and 20-CY and an Income Statement. Perform a horizontal analysis for the comparative balance sheet showing the peso and percentage changes of each iten Perform a vertical analysis showing the ratio of each item of the income statement to Sales and each item of the compar Total Assets, Total Liabilities, and Stockholders' Equity. Perform a ratio analysis using the items from the comparative balance sheet and income statements to evaluate the f

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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Below is the information obtained from the financial statements of MAC TRADING COMPANY for the year ended December 31 of the current year. Balance Sheet Accounts (Dec. 31) 20-CY Income Statement Accounts (Dec. 31) 20-CY 20-PY Cash 283,000 150,000 Sales 5,250,000 Marketable Securities 850,000 250,000 1,000,000 1,000,000 Sales Returns and Allowances 500,000 750,000 Inventory, Dec. 31, 20-CY Inventory, Dec. 31, 20-PY 500,000 750,000 Accounts Receivable, net Inventories 500,000 Land 500,000 500,000 Purchases 2,750,000 550,000 400,000 Building, net Machinery and Equipment, net 500,000 Selling Expenses 1,500,000 1,700,000 Administrative Expenses Goodwill 400,000 400,000 600,000 (including Depreciation of P250,000) Interest on Long-term Notes Other Assets 90,000 100,000 250,000 100,000 Notes Payable, Trade Accounts Payable, net Expenses Payable Long-term Notes 15% Preferred Stock, P100 par Common Stock, P10 par Retained Earnings 150,000 790,000 610,000 40,000 60,000 2,250,000 2,500,000 500,000 500,000 1,500,000 1,500,000 523,000 250,000 Additional Information: There are only 300 business days during the year. Income Taxes, 30% Required: 1. Prepare a comparative Balance Sheet for 20-PY and 20-CY and an Income Statement. 2. Perform a horizontal analysis for the comparative balance sheet showing the peso and percentage changes of each item. 3. Perform a vertical analysis showing the ratio of each item of the income statement to Sales and each item of the comparative balance sheet to Total Assets, Total Liabilities, and Stockholders' Equity. 4. Perform a ratio analysis using the items from the comparative balance sheet and income statements to evaluate the firm's activity, liquidity, solvency, and profitability for the current year.
Transcribed Image Text:Below is the information obtained from the financial statements of MAC TRADING COMPANY for the year ended December 31 of the current year. Balance Sheet Accounts (Dec. 31) 20-CY Income Statement Accounts (Dec. 31) 20-CY 20-PY Cash 283,000 150,000 Sales 5,250,000 Marketable Securities 850,000 250,000 1,000,000 1,000,000 Sales Returns and Allowances 500,000 750,000 Inventory, Dec. 31, 20-CY Inventory, Dec. 31, 20-PY 500,000 750,000 Accounts Receivable, net Inventories 500,000 Land 500,000 500,000 Purchases 2,750,000 550,000 400,000 Building, net Machinery and Equipment, net 500,000 Selling Expenses 1,500,000 1,700,000 Administrative Expenses Goodwill 400,000 400,000 600,000 (including Depreciation of P250,000) Interest on Long-term Notes Other Assets 90,000 100,000 250,000 100,000 Notes Payable, Trade Accounts Payable, net Expenses Payable Long-term Notes 15% Preferred Stock, P100 par Common Stock, P10 par Retained Earnings 150,000 790,000 610,000 40,000 60,000 2,250,000 2,500,000 500,000 500,000 1,500,000 1,500,000 523,000 250,000 Additional Information: There are only 300 business days during the year. Income Taxes, 30% Required: 1. Prepare a comparative Balance Sheet for 20-PY and 20-CY and an Income Statement. 2. Perform a horizontal analysis for the comparative balance sheet showing the peso and percentage changes of each item. 3. Perform a vertical analysis showing the ratio of each item of the income statement to Sales and each item of the comparative balance sheet to Total Assets, Total Liabilities, and Stockholders' Equity. 4. Perform a ratio analysis using the items from the comparative balance sheet and income statements to evaluate the firm's activity, liquidity, solvency, and profitability for the current year.
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