Case 1: Vertical Analysis of Profit and LossPrepare a vertical analysis of the income statements of GMA from 2007 to 2010 by usingRevenues as the base.1. Describe the trend of revenues from 2007 to 2010. What observations can be drawn?2. Describe the trend of direct costs from 2007 to 2010. What observations can be drawn?3. Describe the trend of operating expenses from 2007 to 2010. What observations can be drawn?4. Describe the trend of operating income from 2007 to 2010. What observations can be drawn?5. Describe the trend of net income from 2007 to 2010. What observations can be drawn? CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEcurrency in philippine pesos, in millions2010200920082007Revenues12,150.011,599.710,549.710,186.84,109.26,077.6Cost of Goods Sold4,951.04,554.74,250.7GROSS PROFIT (Gross Income/Net Revenues)7,199.07,045.06,299.0Selling General & Admin Expenses, Total3,001.72,727.72,376.72,296.1Depreciation & Amortization, Total316.7367.7378.4333.2Other Operating ExpensesOTHER OPERATING EXPENSES, TOTAL173.4178.1147.2132.83,491.83,273.52,902.42,762.2INCOME FROM OPERATIONS (Operating Income)3,707.23,771.53,396.63,315.4Interest Expense(3.8)(8.9)(9.1)(23.1)Interest and Investment Income77.357.868.874.4Income (Loss) on Equity InvestmentsCurrency Exchange Gains (Loss)6.9(11.5)(7.0)(3.2)(25.5)(9.2)0.3(19.0)Other Non-Operating Income (Expenses)18.328.641.691.1Gain (Loss) on Sale of Assets13.910.230.6(0.8)Other Unusual Items, TotalNET INCOME BEFORE TAX0.40.817.03,794.23,838.93,522.73,451.7Income Tax Expense1,153.81,144.5973.41,020.6NET INCOME2,820.82,818.32,368.92,307.2

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Case 1: Vertical Analysis of Profit and Loss Prepare a vertical analysis of the income statements of GMA from 2007 to 2010 by using Revenues as the base. 1. Describe the trend of revenues from 2007 to 2010. What observations can be drawn? 2. Describe the trend of direct costs from 2007 to 2010. What observations can be drawn? 3. Describe the trend of operating expenses from 2007 to 2010. What observations can be draw

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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7. Halal Berhad’s comparative financial statements for the years ending 31 December 2020, and 2019, are as follows. Halal Berhad’s common stock market price was RM35 on 31 December 2020 and RM40 on 31 December 2019. Halal Berhad Statement of Profit or Loss and Other Comprehensive Income For the years ended 31 December 2020 and 2019 2020 (RM’000) 2019 (RM’000) Sales 1,200 1,000 Cost of goods sold 500 475 Gross Profit 700 525 Selling expenses 240 200 Administrative expenses 180 150 Total operating expenses 420 350 Income from operations 280 175 Other income 166 225 446 400 Other expense (interest) 66 60 Income before income tax 380 340 Income tax expense 80 60 Net income 300 280 Halal Berhad Statement of Financial Position As at 31 December…
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