Financial Statement Analysis

Using a horizontal analysis, what is the percentage change in Inventory Account for ABC Company that has PHP 200, 000 inventory in 2022 and P HP320 000 in 2023 respectively?

• 37.5%

• 60%

• 50%

• 45%

Net Sales 250 000

Costs of Goods Sold 185 000

Gross Profit 65 000

Given the data above, how much is the common-size percentage of the COGS for the period?

• 72%

• 73%

• 74%

• 75%

Comparing the amount of a balance sheet in one year to the amount for the same item in the prior year is called

• horizontal analysis

• common-size analysis

• vertical analysis

• ratio analysis

if the current assets are Php 270 000 and the total assets are Php 810 000, what percentage of total assets are current assets?

• 3.5 percent

• 30 percent

• 25 percent

• 33 percent

This ratio measures the number of times the company was able to sell its entire inventory to customers during the year.

• Inventory Turnover Ratio

• Acid Test Ratio

• Working Capital

• Total Asset Turnover

Refers to the company’s ability to satisfy its short-term obligations as they come due.

• Solvency

• Liquidity

• Efficiency

• Profitability

How much net sales are generated for every Php 1.00 of assets given the data below?

Net Sales: 55 000

Total Assets: 2023 - 50 000 ; 2022 - 45 000

• 1.1 times

• 1.16 times

• 0.58 times

• 1.22 times

The company wants to determine how long it is able to sell its inventory. Given the following information can you help the owner determine the number of days it can turn its inventory into sales?

Beginning Inventory - 20 000

Ending Inventory - 10 000

Cost of Good Sold - 50 000

Net Sales - 40 000

• 73 days

• 110 days

• 146 days

• 292 days