FS Analysis Activity.docx - Phia Vhianna Reign S. Ramirez...

Phia Vhianna Reign S. Ramirez
ABM 12-A
FINANCIAL STATEMENT ANALYSIS
Horizontal and Vertical Analysis
Presented below are the comparative Statements of Financial Position of DM Atienza Company for the calendar years
2020 and 2021:
 Using the horizontal analysis, compute for the increase (decrease) in amount and percentage change between
years 2020 and 2021.
DM Atienza Company
Statements of Financial Position
December 31
ASSETS 2021 2020 Increase
(Decrease)
Percentage
Change
Current Assets:
Cash
Marketable securities
Accounts receivable (net)
Inventories
Other current assets
Total current assets
P 240,000
160,000
360,000
480,000
120,000
P 1,360,000
P 200,000
120,000
240,000
400,000
160,000
P 1,120,000
P 40,000
40,000
120,000
80,000
(40,000)
P 240,000
20%
33.33%
50%
20%
(25%)
21.43%
Noncurrent Assets:
Investment in securities
Property, Plant & Equipment (net)
Other noncurrent asset, net
Total noncurrent assets
P 200,000
2,000,000
440,000
P 2,640,000
P 160,000
2,120,000
240,000
P 2,520,000
P 40,000
(120,000)
200,000
P 120,000
25%
5.66%
83.33%
4.76%
TOTAL ASSETS P 4,000,000 P 3,640,000 P 360 ,000 9.89%
LIABILITIES & EQUITY
Liabilities:
Current Liabilities
Noncurrent Liabilities
Total Liabilities
P 680,000
200,000
P 880,000
P 440,000
200,000
P 640,000
P 240,000
0
P 240,000
54.55%
0%
37.5%
Equity:
5% Cumulative, non-participating Preferred
stock, P10 par value, 8,000 shares issued
and outstanding
Common stock, P10 par, 160,000 shares
authorized, 120,000 shares issued and
outstanding
Share Premium – Common
Retained earnings
Total Equity