Instructions: Perform a Financial Statement Analysis of Bell Pepper Corporation to assess the overall performance of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Instructions: Perform a Financial Statement Analysis of Bell Pepper Corporation to assess the overall performance of the corporation. The Financial statements of Bell Pepper Corporation are shown below. The market price of Bell Pepper's ordinary share was P20 per share on November 30, 2020. Use this information to conduct your analysis. Bell Pepper Corporation Statement of Financial Position Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities As of November 30 (in thousands of pesos) Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity 2020 P 3,000 1,000 14,000 24,000 42,000 68,000 10,000 P120,000 P P P 5,000 1,000 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 P 30,000 60,000 10,000 P100,000 2019 P 2,000 1,000 11,000 16,000 P P 4,000 1,000 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000 Sales (all on credit) Cost of goods sold Gross margin Operating expenses Bell Pepper Corporation Statement of Income For the Year Ended November 30, 2020 (in thousands of pesos) Net operating income Interest expense Net income before income tax Income tax expense Net income 2020 P200,000 (120,000) 80,000 (38,000) 42,000 (2,000) 40,000 (15,000) P 25,000 2019 P 180,000 (90,000) P 90,000 (P45,000) 45,000 (6,000) P 39,000 (17,000) P 22,000 2018 P 130,000 (54,000) P 76,000 (P42,000) 34,000 (6,000) P 28,000 (8,000) P 20,000 REQUIRED: USE THE FORMAT GIVEN FOR EACH OF THE ANALYSIS AND USE IT AS YOUR ANSWER SHEET. (FS COMPUTATIONS AND ANALYSIS WILL BE GIVEN EQUAL POINTS.) A. Perform a Horizontal Analysis- Increase/ (Decrease) Method. Round off the amount and the percentage change to 2 decimal places. 5 points +5 analysis Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity Bell Pepper Corporation Statement of Financial Position As of November 30 (in thousands of pesos) 2020 2019 P 2,000 1,000 11,000 16,000 P 3,000 1,000 14,000 24,000 P 42,000 P 68,000 10,000 P120,000 P 5,000 1,000 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 P 30,000 60,000 10,000 P100,000 P P 4,000 1,000 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000 Amount % Change ANALYSIS B. Perform a Vertical Analysis/ Common-Size Analysis Method. Round off the amount and the percentage change to 2 decimal places. 5 points +5 analysis Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity 2020 P 3,000 1,000 14,000 24,000 P 42,000 P 68,000 10,000 P120,000 P 5,000 1,000 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 Percentage 2019 P 2,000 1,000 11,000 16,000 P 30,000 60,000 10,000 P100,000 P P 4,000 1,000 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000 Percentage ANALYSIS Instructions: Perform a Financial Statement Analysis of Bell Pepper Corporation to assess the overall performance of the corporation. The Financial statements of Bell Pepper Corporation are shown below. The market price of Bell Pepper's ordinary share was P20 per share on November 30, 2020. Use this information to conduct your analysis. Bell Pepper Corporation Statement of Financial Position Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities As of November 30 (in thousands of pesos) Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity 2020 P 3,000 1,000 14,000 24,000 42,000 68,000 10,000 P120,000 P P P 5,000 1,000 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 P 30,000 60,000 10,000 P100,000 2019 P 2,000 1,000 11,000 16,000 P P 4,000 1,000 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000 Sales (all on credit) Cost of goods sold Gross margin Operating expenses Bell Pepper Corporation Statement of Income For the Year Ended November 30, 2020 (in thousands of pesos) Net operating income Interest expense Net income before income tax Income tax expense Net income 2020 P200,000 (120,000) 80,000 (38,000) 42,000 (2,000) 40,000 (15,000) P 25,000 2019 P 180,000 (90,000) P 90,000 (P45,000) 45,000 (6,000) P 39,000 (17,000) P 22,000 2018 P 130,000 (54,000) P 76,000 (P42,000) 34,000 (6,000) P 28,000 (8,000) P 20,000 REQUIRED: USE THE FORMAT GIVEN FOR EACH OF THE ANALYSIS AND USE IT AS YOUR ANSWER SHEET. (FS COMPUTATIONS AND ANALYSIS WILL BE GIVEN EQUAL POINTS.) A. Perform a Horizontal Analysis- Increase/ (Decrease) Method. Round off the amount and the percentage change to 2 decimal places. 5 points +5 analysis Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity Bell Pepper Corporation Statement of Financial Position As of November 30 (in thousands of pesos) 2020 2019 P 2,000 1,000 11,000 16,000 P 3,000 1,000 14,000 24,000 P 42,000 P 68,000 10,000 P120,000 P 5,000 1,000 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 P 30,000 60,000 10,000 P100,000 P P 4,000 1,000 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000 Amount % Change ANALYSIS B. Perform a Vertical Analysis/ Common-Size Analysis Method. Round off the amount and the percentage change to 2 decimal places. 5 points +5 analysis Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity 2020 P 3,000 1,000 14,000 24,000 P 42,000 P 68,000 10,000 P120,000 P 5,000 1,000 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 Percentage 2019 P 2,000 1,000 11,000 16,000 P 30,000 60,000 10,000 P100,000 P P 4,000 1,000 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000 Percentage ANALYSIS
Expert Answer:
Answer rating: 100% (QA)
A Horizontal Analysis The horizontal analysis also known as the trend analysis evaluates the changes in financial statement items over multiple periods to identify trends and assess performance Here w... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
WEEKLY QUESTIONS:) 1. Name and describe the five different types of digital presence with an example of a website/company. 2. For any ONE of the digital presence examples given as answer in question...
-
Basic Risk Adjustment in Capital Budgeting The RADR (Risk adjusted Discount Rate Method ) approach involves the use of CAPM. While CAPM is commonly used at the firm level, it can also be used at the...
-
You need to write a paper about the leadership and your responsibility in an organization. Which types of problems can be occurred and how can you face them
-
GS Cookie Co. forecasts cash receipts for January and February of $18,000 and $20,000, respectively. Cash Payments of $6,000 and $8,000 are expected in these two months. GS Cookie's cash balance at...
-
Ling Corporation uses the equity method to account for its ownership of 35% of the common stock of Gorman Packing. During 2014, Gorman reported a net income of $80,000 and declares and pays cash...
-
Describe the various federal labor acts.
-
During a violent thunderstorm with very high wind gusts in the third week of March, the broadcast tower for the public radio station, WVPR, atop Poor Mountain in Roanoke, Virginia, collapsed. This...
-
Construct a decision tree for a binary search of these ordered names: 3, 5, 10, 14, 25, 33, 56, 72, 90. What is the height of the tree? (4 +1 marks) What day of the week did/does your birthday fall...
-
Visit the website for the Congressional Budget Office (www.cbo.gov), follow the link to Budget and Economic Information, and look up the most current Monthly Budget Review. What is the CBOs estimate...
-
The net income of the Tom and Jerry partnership is $125,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of $100,000 (Tom) and $150,000...
-
The Wakata County School District has been looking for ways to reduce the number of unplanned pregnancies that occur each year among students in the district. Their approach is explicitly...
-
List what you think are the benefits of apa style and the benefits of mla style. Why do you think some people prefer apa style over mla style or vice versa? book link...
-
Workplace Messaging and texting explain workplace instant messaging and texting as well as their liabilities and best practices. Impact of Instant Messaging and texting. how Best Practices for...
-
investigate a social media public relations (PR) campaign by an organization. Some examples of platforms are LinkedIn, Twitter, Facebook, Google+, Pinterest, and YouTube. The organizations can be...
-
What philosophy was given by Roy Bartell and what was he trying to explain?
-
Section 7.3 in the textbook discusses how markets provide efficient answers to the following 3 questions: 1. Who makes what? 2. Who gets what? 3. How much gets bought and sold? Consider the market...
-
Whats the difference between an ordinary annuity and an annuity due? What type of annuity is shown below? How would you change the time line to show the other type of annuity?
-
Purpose: To help you understand and compare the performance of two companies in the same industry. Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Financial...
-
Journalize the following adjusting entries at August 31: 1. Services provided but not recorded, $5,100. 2. Salaries earned by employees but not recorded, $7,500. 3. Accrued interest on a note...
-
Wendy Brown and her husband Jeff were the owners of WJ Enterprises, Inc. They applied for a small business loan, and the bank requested the most recent business financial statements. When Wendy...
-
Consider the homogeneous bar, of negligible cross section, mass \(M=1.333 \mathrm{~kg}\) and length \(L=60.0 \mathrm{~cm}\) in Fig.12.19 . It is constrained to rotate in a vertical plane about its...
-
A projectile of mass \(m=2.5 \mathrm{~kg}\) is shot tangentially (see Fig.12.19) at the edge of a ring having radius \(R=50 \mathrm{~cm}\) and whose mass is equal (within measurement errors) to that...
-
A homogeneous disk, having mass \(M=2.50 \mathrm{~kg}\) and radius \(R=15.0 \mathrm{~cm}\), can rotate, without friction, about a fixed horizontal axis, passing through the point \(\mathrm{O}\) of...
Study smarter with the SolutionInn App