1a. Prepare Comparative Statements - Balance Sheet and Income Statement, using VERTICAL ANALYSIS for the following data: 20 marks

1b. From the calculations you have made in 1a, comment on the changes you observe for Equity capital, Land & Buildings, Plant & Equipment, Accounts receivable and Administrative expenses. 5 marks

	2020 (in BHD)	2021 (in BHD)
Equity capital	425	500
Net sales	4,500	5,250
Accounts payable	155	200
Inventory	260	290
Cost of goods sold	2,800	3,300
Plant and equipment	525	450
Non-current Liabilities	600	650
Cash at bank	45	30
Land & Buildings	650	850
Administrative expenses	600	570
Reserves	420	450
Selling expenses	550	500
Accounts receivable	120	180

2. You have you been provided the following data for which you have been asked to compute various ratios for 2021 and comment on them based on a comparison with the Industry Average and trend over the years.

JB Corp

Income Statement for the Year Ended, December 31, 2021

(in $)

Sales 200,000

Less: (i). Cost of goods sold 130,000

(ii). Operating expenses 19,000

(iii). Non-operating expenses 15,000

Net income before Tax 36,000

Less: Tax (20%) 7,200

Net income after Tax 28,800

JB Corp

Balance Sheet as at December 31, 2020 and 2021

	Dec. 31, 2020	Dec. 31, 2021
ASSETS	(in $)	(in $)
Cash at Bank	110,000	120,000
Accounts receivable	55,000	40,000
Inventory	40,000	45,000
Plant and Equipment	150,000	180,000
Land	120,000	120,000
Total	475,000	505,000
LIABILITIES & SHAREHOLDERS EQUITY
Accounts payable	152,000	175,000
Taxes payable (outstanding)	13,000	15,000
Long-term debt	190,000	190,000
Common stock	100,000	100,000
Retained earnings	20,000	25,000
Total	475,000	505,000

Note: The Company has 1000 common stock outstanding in 2021.