Professional Documents
Culture Documents
Submitted by:
Abdul Khalid D. Sansarona
BSCA 4th Year
Submitted to:
Professor Del Monte
October 6, 2015
Balance Sheets
As of December 31, 2014 and 2013
December 31
2014
2013
ASSETS
CURRENT ASSETS
Cash
130,264.24
Merchandise Inventory
115,743.75
Deferred input tax
Prepaid income tax
3,284.71
Total Current Assets
249,292.70
NON-CURRENT ASSETS
Property and Equipment-net
1,838,679.05
Other Assets
814,159.60
Total Non-Current Assets
2,652,838.65
TOTAL ASSETS
2,902,131.35
447,652.87
169,890.40
3,556.86
3, 284.71
624,384.84
1,795,939.13
814,159.60
2,610,098.73
P
3,234,483.57
9,922.00
1,772,365.33
9,516.71
1,791,804.04
STOCKHOLDERS EQUITY
(Authorized to issue 100,000.00 shares at
Php 100 par value Php 10,000,000.00)
Subscribed and paid-up capital
5,000,000.00
Retained Earnings
(3,104,263.49)
5,000,000.00
(3,557,320.47)
1,442,679.53
P
According to the balance sheet herein provided, the company reported P1, 006,394.84 of
current liabilities and only P249, 292.70 of current assets for the year 2013. The companys
current ratio would be calculated like this:
2013
Current Ratio= 249,292.70
1,006,394.84
= 0.25
2014
Current Ratio= 624,384.84
1,791,804.04
= 0.35
As illustrated, the company only has enough current assets to pay off 25 percent of his
current liabilities for the year 2013 and 35 percent for 2014. This shows that the company is
highly leveraged and highly risky. If the company would apply for a loan in a bank, the same
would prefer a current ratio of at least 1 or 2, so that all the current liabilities would be
covered by the current assets.
QUICK RATIO
Formula:
Acid or Quick Ratio= Current Assets Inventory
Current
Liabilities
2013
Acid or Quick Ratio= 249,292.70 115,743.75
1,006,394.84
= 0.13:1
2014
Acid or Quick Ratio= 624,384.84 169,890.40
1,791,804.04
= 0.25:1
The computation above shown provides that the current ratio for the year
2013, which is 0.13:1, indicates that for every one peso of current liability, there is .
13 cents available payment from the current asset. This is a low indicative of the
companys liability to pay maturing obligation. For the year 2014, for every one
peso of current liability, there is .25 cents available payment from the current asset
which indicates that for the following year, the same would be the inability of the
company to pay its obligation.
Income Statements
For the years ended December 31, 2014 and 2013
(In Philippine Peso)
December 31
2014
2013
SALES
P 3,254,778.35
2,371,169.22
Cost of Sales
2,772,186.39
1,875,069.69
496,099.53
1, 182.09
497,281.62
940,416.60
9,922.00
P
VERTICAL ANALYSIS:
December 31
2014
2013
SALES
100%
100%
Cost of Sales
85%
79%
21%
0.05%
21.05%
40%
(-18.95%)
4%
(-14.95%)
INVENTORY RATIO
Rate of Inventory Turn-over
Formula:
Rate of Inventory Turn Over =
Cost of Sales
Average Inventory
2013:
Rate of Inventory Turn Over =
2,772,186.39
115,743.75
= 23.95
The computation for the year 2013 shows a high rate on turn-over
which indicates a great demand of the commodities.
2014:
Rate of Inventory Turn Over =
1,875,069.69
169,890.40
= 11.04
As for the following year, the rate indicates fair demand of the
commodities.
Formula:
Debt to Total Assets Ratio=
TOTAL
LIABILITIES
TOTAL ASSETS
2013:
Debt to Total Assets Ratio=
1,006,394.84
2,902,131.35
2014:
Debt to Total Assets Ratio=
= 0.55
1,791,804.04
3,234,483.57