D E F G H B FINANCIAL STATEMENT ANALYSIS QUIZ PART 1. DATA 1 2 3 4 8 9 10 11 12 13 14 15 16 17 18 XYZ COMPANY Income Statement For the Years Ending December 31, 2013 & 2012 2013 2012 Sales 4,938,750 4,410,000 Sales returns and allowances 220,500 276,750 Net sales 4,718,250 4,133,250 Cost of goods sold 2,882,250 2,565,000 Gross profit 1,836,000 1,568,250 Selling expenses 569,250 475,875 Administrative expenses 612,450 556,875 Total operating expenses 1,181,700 1,032,750 Income from operations 654,300 535,500 Interest expense 60,750 66,375 Net Income 593,550 469,125 10 2012 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 XYZ COMPANY Statement of Financial Position As of December 31, 2013 & 2012 2013 Assets Intangible assets 33,750 Equipment 1,912,500 Accumulated depreciation (112,500) Prepaid expenses 112,500 Inventory 1,395,000 Accounts receivable 517,500 Short-term investments 45,000 Cash 225,000 Total current assets 2,295,000 Total Assets 4,128,750 Equity & Liabilities Share capital 619,650 Retained earnings 1,637,100 Total Equity 2,256,750 Noncurrent liabilities 1,096,875 Current liabilities 775,125 Total liabilities 1,872,000 Total Equity & Liabilities 4,128,750 39,375 1,513,125 (90,000) 90,000 1,125,000 405,000 157,500 348,750 2,126,250 3,588,750 607,500 1,181,250 1,788,750 1,118,250 681,750 1,800,000 3,588,750 46 FINANCIAL STATEMENT ANALYSIS QUIZ NAME 47 PART 2. QUESTIONS & ANSWERS ID ANSWERS 48 49 1 What was the percentage change (horizontal analysis) of Sales? 50 51 2 What was the percenage change in Inventory? 52 53 3 What was the percentage change in Total Equity? 54 55 4 What was the percentage change in Current Liabilities? 56 57 5 What is the vertical percentage for Cost of Goods Sold? (2013 only) 58 59 6 What is the vertical percentage for Income from Operations? (2013 only) 60 61 7 What is the vertical percentage for Equipment? (2013 only) 62 63 8 What is the vertical percentage for Noncurrent Liabilities? (2013 only) 64 65 Calculate the following ratios: 66 67 9 Current Ratio 68 69 10 Acid Test or Quick Ratio 70 71 11 Receivables Turnover Ratio 72 73 12 Inventory Turnover Ratio 74 75 13 Gross Profit Ratio 76 77 14 Profit Margin 78 79 15 Return on Assets 80 81 16 Return on Equity 82 83 17 Asset Turnover 84 Sheet1 + Debt-to-Total-Assets Ratio Debt-to-Equity Ratio Times Interest earned ratio