The Superior Print Limited is a printing firm and do provide other stationery services to its clients across the country. As a Financial Analyst you are expected to assess the performance of the company’s income and financial position below. SUPERIOR PRINT LIMITED Comprehensive Income Statement for the Years Ended December 31, 2015 and 2014 2015 2014 Particulars GH¢ GH¢ Net sales 260,000 240,000 Cost of goods sold (180,000) (157,500) Gross profit 80,000 82,500 Operating expenses (64,300) ` (63,000) Net operating profit 15,700 19,500 Interest expense (3,200) (3,500) Net profit before taxes 12,500 16,000 Income tax (3,750) (4,800) Net income for the year 8,750 11,200 SUPERIOR PRINT LIMITED Statement of Financial Position as at December 31, 2015 and 2014 Particulars 2015GH¢ 2014GH¢ ASSETS Non-Current Assets: Land 20,000 20,000 Buildings and equipment 60,000 42,500 Total Non-current Assets 80,000 62,500 Current Assets: Cash 6,000 11,750 Accounts receivables 30,000 20,000 Inventory 40,000 50,000 Prepaid expenses 1,500 600 Total Assets 157,500 144,850 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable 33,500 22,000 Notes payable 1,500 3,000 Total current liabilities 35,000 25,000 Long-term Liabilities: Bonds payable 37,500 40,000 Total liabilities 72,500 65,000 Shareholders’ Equity: Preferred Stock 10,000 10,000 Common stock 30,000 30,000 Additional paid-in capital 5,000 5,000 Total paid-in capital 45,000 45,000 Retained earnings 40,000 34,850 Total shareholders’ equity 85,000 79,850 Total Liabilities and Shareholders’ Equity 157,500 144,850 Required: Using horizontal and vertical analysis technique, compute and interpret the performance of Superior Print Ltd for both years stating your assumptions.
The Superior Print Limited is a printing firm and do provide other stationery services to its clients across the country. As a Financial Analyst you are expected to assess the performance of the company’s income and financial position below.
SUPERIOR PRINT LIMITED
Comprehensive Income Statement for the Years Ended December 31, 2015 and 2014
2015 2014
Particulars GH¢ GH¢
Net sales 260,000 240,000
Cost of goods sold (180,000) (157,500)
Gross profit 80,000 82,500
Operating expenses (64,300) ` (63,000)
Net operating profit 15,700 19,500
Interest expense (3,200) (3,500)
Net profit before taxes 12,500 16,000
Income tax (3,750) (4,800)
Net income for the year 8,750 11,200
SUPERIOR PRINT LIMITED
Statement of Financial Position as at December 31, 2015 and 2014
Particulars 2015GH¢ 2014GH¢
ASSETS
Non-Current Assets:
Land 20,000 20,000
Buildings and equipment 60,000 42,500
Total Non-current Assets 80,000 62,500
Current Assets:
Cash 6,000 11,750
Inventory 40,000 50,000
Prepaid expenses 1,500 600
Total Assets 157,500 144,850
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable 33,500 22,000
Notes payable 1,500 3,000
Total current liabilities 35,000 25,000
Long-term Liabilities:
Bonds payable 37,500 40,000
Total liabilities 72,500 65,000
Shareholders’ Equity:
Common stock 30,000 30,000
Additional paid-in capital 5,000 5,000
Total paid-in capital 45,000 45,000
Total shareholders’ equity 85,000 79,850
Total Liabilities and Shareholders’ Equity 157,500 144,850
Required:
Using horizontal and vertical analysis technique, compute and interpret the performance of Superior Print Ltd for both years stating your assumptions.
Step by step
Solved in 2 steps with 4 images
