Q: What are the reasons for preparing horizontal and vertical analysis ?
A: Vertical and horizontal analysis of financial statements is part of financial statement analysis.…
Q: Vertical Analysis
A: Trend analysis is an analysis done by the companies to understand their current performance with…
Q: What is the primary objective of horizontal analysis and its concept
A: Horizontal analysis is a financial statement analysis. Horizontal analysis used to compare…
Q: sponding item on a diffe or key amount on the sa ustry average.
A: The correct statement is b. a total or key amount on the same statement
Q: Define geometric-gradient-series?
A: When there is a change in the cash flows series whether it is positive or negative then the series…
Q: Explain the following concepts? a. Off-sheet analysis. b. Horizontal analysis. c. Vertical analysis.…
A: a. Off-sheet analysis: The analysis of the off balance sheet items, the assets and loans which are…
Q: Define Horizontal analysis
A:
Q: Can you calculate the horizontal analysis
A: Horizontal Analysis: Horizontal analysis of a company's financial statements involves computing the…
Q: What is the difference between vertical analysis and horizontal analysis?
A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…
Q: Define Vertical analysis.
A: Financial statement analysis Financial statement analysis are analyzed to understand the…
Q: How do i find the cm per unit
A: Formula: Contribution margin per unit = Sales price - variable cost per unit. Deduction of variable…
Q: Define each of the following terms:d. Flotation cost, F
A: Primary market is the place where company sells or offers new equity shares to the investors. New…
Q: Calculate Vertical and Horizontal Ratio Analysis?
A: Ratios refer to the measurement of the relation between two sums. In accounting, ratio analysis is…
Q: Calculate the Mean value
A: PERT technique refers to the techniques which are used to simplify the scheduling and planning of…
Q: Compute acid test ratio.
A: The Acid test ratio differs from the current ratio is that prepaid expenses and inventory are…
Q: Describe and apply methods of vertical analysis.
A: Vertical analysis is the method which is helpful for financial statement analysis under which each…
Q: Complete a locational cost–volume analysis graphically and mathematically
A: Locational cost volume analysis is way to find the volume of production at which the company break…
Q: Explain horizontal and vertical analysis and when you would use one over the other.
A: While assessing financial performance of a company, we can\\'t just look at the company\\'s…
Q: Calculate the current ratio
A: The current ratio is the ratio of current assets to the current liabilities. It shows the ability of…
Q: Define current ratio.
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Compute current ratio
A: The current ratio is a financial ratio that measures whether or not a firm has enough resources to…
Q: Define characteristic line
A: Characteristic line is a graphical representation of alpha (α) where alpha is the difference between…
Q: describe the main differences between Vertical and Horizontal Analysis.
A: Vertical Analysis: In financial statements, vertical analysis refers to the approach of assessing…
Q: Distinguish between (a) cost behavior and (b) a mixed cost, and (c) a step-variable cost. Plot the…
A: The following costs are categorized as per their behavior to the change in the level of output in…
Q: EXPLAIN THE VERTICAL ANALYSIS RESULT IN TOTAL ASSET
A: Analysis is made by the management team of the business in order to know and measure about the…
Q: Determine the current ratio
A: Current Ratio: It is a measure of liquidity and indicates the ability of a firm to pay the…
Q: Distinguish between sacrificing ratio and gaining tab.
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…
Q: explain the difference between margin and markup
A: Margin can be defined as the amount that is derived by deducting Cost of goods sold from sales. that…
Q: Define average collection period (ACP)
A: The formula used for calculating ACP is:
Q: Describe straight-line method with example.
A: Straight-line Depreciation: Under the straight-line method of depreciation, the same amount of…
Q: How to do vertical and horizontal analysis.
A: Horizontal Analysis: Horizontal analysis is prepared to make comparison between the financial…
Q: Which technique is the most accurate to measure the distance? Pacing Taping Measurement Wheel EDM
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: The second term for Horizontal Analysis is a. Dynamic Analysis b. Structural analysis c.…
A: Horizontal analysis: Horizontal analysis is a technique of comparing financial information of one…
Q: Define Pretax margin
A: The pretax margin is a ratio to evaluate the operational efficiency of a firm. It measures the…
Q: Compare and contrast trend analysis and comparative ratioanalysis
A: The key distinction between analysis and comparative analysis is that analysis may be a procedure in…
Q: e NPV profile intersects the horizontal axi
A: Net present value refers to the difference between the present value of cash inflow and cash…
Q: Required: • horizontal analysis
A: In horizontal analysis, difference is calculated between last year and current year and the…
Q: Define adjusted alphas.
A: Alpha is denoted as the performance of an investment in comparison with the performance of the…
Q: Define Profi t margin
A: financial ratios are created with the use of numerical values taken from the financial statements.
Calculate the horizontal analysis
Step by step
Solved in 2 steps with 1 images
- ABFHRL437 Corporation’s info is bel ow: Sales $509,000 VC $101,800 FC $22,730 NOI $384,470 Q. How much is ABFHRL437’s Contribution Margin? A. $What is the value to be given to product Del? A. P25,000 B. P21,000 C. P24,000 D. P20,0002019 2020Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500Fixed cost per unit R3 R4 Current assets R450 600 R560 700Current liabilities R510 000 R780 000Retained profit R21 809 R17 600Net Sales R2 900 320 R 3 100 100Cost of sales R390 000 R475 000 Q.5.1 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020.b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference. Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019.b. Explain the results of the current-test ratio.Q.5.3 a. Calculate the gross profit margin for Pearson & Litt for 2020 b. Explain the results of the gross profit margin calculation. Q.5.4 a. Differentiate between traditional budgeting and zero-base budgeting.b. Recommend one of these budgeting methods to Pearson & Litt and provide reasons for your recommendation
- 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 1000 Cost of sales R390 000 R475 000 Q.5.1.1 Calculate the break‐even point for Pearson & Litt for 2019 and 2020.2019 2020 sale price per unit R15 R19 Variable cost per unit R16 R7 Fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 100 Cost of sales R390 000 R475 000 Q.5.1.1 Calculate the break‐even point for Pearson & Litt for 2019 and 20202019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 100 Cost of sales R390 000 R475 000 The current ratio reflects the relationship between the value of the current assetsand the extent of the current liabilities of a business. Q.5.2.1 Calculate the current ratio for Pearson & Litt for 2019
- Cost of goods sold $445000 Income tax expense 66000 Operating expenses 341000 Sales 1000000 The profit margin would be 55.5%. 14.8%. 44.5%. 21.4%.SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…1. ABC Co. has the following information: 20x1 20x2Installment sales ? ?Cost of sales 600,000 660,000Installment receivable - 20x1 600,000 400,000Installment receivable - 20x2 720,000Gross profit rates based on sales 40% 45% How much is the total realized gross profit in 20x2?
- Begin with the partial model in the file Ch02 P20 Build a Model.xlsx on the textbook’s Web site. Britton String Corp. manufactures specialty strings for musical instruments and tennis racquets. Its most recent sales were $880 million; operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $300 million; depreciation amounted to 10% of net fixed assets; interest expenses were $22 million; the state-plus-federal corporate tax rate was 25%; and it paid 40% of its net income out in dividends. Given this information, construct Britton String’s income statement. Also calculate total dividends and the addition to retained earnings. Report all dollar figures in millions. Britton String’s partial balance sheets follow. Britton issued $36 million of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity. Construct the statement of cash flows for 2020. Britton Strings Corp: Balance Sheets as of December 31 (Millions of Dollars)2021 2020 Usage sales 5700 5300 Other miscellaneous revenue for the financial year 300 200 Total revenue for the year 6000 5500 Cost of use sold 2680 2600 Customer and inventory impairment loss 250 220 GROSS REMUNERATION AND EMPLOYER'S CONTRIBUTIONS 800 750 Impairment provisions for the financial year 50 30 Financial costs for the financial year 300 280 Total operating expenses 900 800 Net profit for the financial year 4980 4680 Balance sheet data 1020 820 Fixed assets and investments 2000 1700 Goods 400 250 Customers minus accumulated impairment 696 1100 Customer promissory notes and bills of exchange 300 700 Cash and trading portfolio 200 350 Total assets 3596 4100 How long is the defensive period of the operation in 2021 (360days)Q7. c) Contribution statement for komfwe dry cleaning Ltd Product A(ZMW) Product B(ZMW) Unit budgeted 1000 1000 Sales 1000 500 Variable costs 600 300 Contribution 400 200 Fixed costs 200 200 Profit 100 - Calculate i) Break-even point for each product ii) Contribution ratio for each product iii) Can you close product B and why? Explain