Specific Topic is on FINANCIAL STATEMENT ANALYSIS

3: Horizontal and vertical analysis - Statement of Financial Position. The financial position of W Company at the end of 2011 and 2012 is as follows (in thousands): 2011 2012 Assets Cash and cash equivalents P 3,000 P 5,000 Trade and other receivables 40,000 25,000 Inventory 27,000 30,000 Investment property 15,000 0 Property, plant, and, equipment (net) 100,000 75,000 Intangible assets 10,000 10,000 Other noncurent assets 5,000 20,000 Total assets P 200.000 P 165,000 Liabilities Current liabilities P 30,000 P 47,000 Long-term liabilities 88,000 74,000 Total liabilities 118.000 121,000 14 | Pa Shareholders' Equity 8% Preference equity 10,000 9,000 Ordinary equity 54,000 42,000 Share premium 5,000 5,000 Retained earnings 13,000 (12,000) Total shareholders' equity 82,000 44,000 Total liabilities and shareholders' equity P 200,000 P 165,000 Sales and cost of goods sold insignificantly change in 2012 in relation to 2011. Required: a. Prepare a comparative statement of financial position showing peso and percentage changes for 2012 as compared with 2011. b. Prepare a ordinary-size statement of financial position as of December 31, 2011 and 2012. Based on your data derived in requirements 1 and 2, comment on the financial position of W Company as of December 31, 2012