II. Direction: Solve the following problems using horizontal and vertical analysis. Write the answer onthe second column. Determine the technique used in solving the problem whether horizontal, orvertical or mixed. Write the answer on the third column. Show solutions in a separate sheet ofраper.What techniqueis usedProblemAnswer1. A company has a total liabilities of P65,000 and owner'sequity of P35,000. What is the percentage of equity tototal assets?2. The total owner's equity for 2018 is P175,000 and for 2019 isP235,500, what is the percentage of increase ordecrease of owner's equity?3. If the current assets are P75,000 and the total assets areP300,000, what is the percentage of noncurrent assets?4. Long-term liabilities are P150,000 which is equivalent to50% of the total liabilities, the owners equity is 40% of thetotal assets, how much would be the total assets?5. The total sales this year is P1,200,000, which resulted froman increase in sales for 10%. How much was the sales forlast year?6. The total current asset is 45%, total liability is 60%, totalequity is P300,000. How much is the total noncurrentassets?7. The Gross Profit is 40%, total sales is P625,000. Thecompany incurred an operating expense of 20%,assuming that there is no non-operating items wereincurred, how much would be the net profit?128. The net profit this year is decreased by 10% due to thepandemic. How much was the net profit last year if thecompany reported a net profit of P90,000 this year?9. If the current assets are 62.5% , the total assets areP600,000, owner's equity is twice the total liabilities, howmuch is the total owner's equity?10. The total sales for this year is P5,000,000, cost of sales if30%, operating expense is 20%, net profit before tax is40%, how much is the non-operating items?

Vertical Analysis: It is a financial statement analysis that considers each and every amount of…

Answered: II. Direction: Solve the following…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1MP

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Hello, how do I solve this problem? I attached the bottom part of the question and what it's asking for since it wouldn't fit in the screenshot. Assuming that total assets were $3,112,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets % e. Return on stockholders’ equity % f. Return on common stockholders' equity %
SDJ, Inc., has net working capital of $2,360, current liabilities of $5,430, and inventory of $1,220. a. What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is Horizontal Analysis? How does it differ from Vertical Analysis? Do you believe one type of analysis is more useful than the other? (2) Perform horizontal analysis on the figures below using dollar amounts and percentages. Round percent answers to one decimal place. (3) Think of the different users of financial statements and discuss who would be interested in this information (and why). 20Y8 20Y7 Fees Earned $680,000 $850,000 Operating Expenses 541,875 637,500 Net Income $138,125 $212,500
If the top five accounts listed on a firm’s trial balance all represent asset accounts, then which of the following statements is MOST likely accurate? Select answer from the options below 1.The values for all five accounts will appear in the debit column. 2.All five accounts should instead be listed at the bottom of the trial balance. 3.The values for all five accounts will appear in the credit column. 4.Some of the values for these accounts will appear in the debit column, while others will appear in the credit column.
Resolve and explain the result of the current ratio for XYZ Company and compare andexplain this result with the Industry average, where current liabilities = $581,000 andcurrent assets = $832,000. a. Resolve the current ratio for XYZ Company b.Explain the result of the current ratio for XYZ Company c.Compare and explain the result of the current ratio for XYZ Company with the Industryaverage.
The initial analysis should include the following: The ratio equation The calculation of the ratio using the equation with the financial data from the two assigned companies. Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving. The original post should include at least three (3) sentences but no more than seven (7) sentences.
I need help to determine the following; 5. For P & B Manufacturing to assess its profitability I need help to calculate the net profit margin percentage AND the return on equity. Include calculations and round answers to 2 decimal places.
The following information was taken from the financial statements of black company and white company Black Company Assets Liabilities ₱110,000 ₱95,000 White Company ₱100,000 ₱20,000 Based on the information, which of the two companies would be more appealing to prospective investors? Why?
The following financial information is taken from the balance sheets of the Peter Company and the Paul Company: Peter Paul Current assets $200,000 $50,000 Current liabilities 40,000 20,000 Calculate the current ratio for each company.Round answers to two decimal places, when appropriate.Peter Company AnswerPaul Company Answer Which firm has a higher level of liquidity?
You are given the following information: Cash=$407, inventory= $579, Notes payable=$301, Long-term debt=$1,680, Accounts payable=$393, Accounts Receivable=$265, Net fixed Assets=$6,141 and total shareholder equity =???. Build a balance sheet and solve for and include shareholder's equity. a. what is the company's quick ratio? b. what is the company's total debt to equity ratio? c. what is the company's total working capital?
The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:
Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 2. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, for example); the second digit is to indicate the subclassification (11 for current assets, for example); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Merchandise Inventory, etc.).

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