Part A Horizontal Analysis of An Income Statement: Complete the Horizontal analy
ID: 2417681 • Letter: P
Question
Part A
Horizontal Analysis of An Income Statement: Complete the Horizontal analysis given for the XYZ Company:
Part B
Vertical Analysis of an Income Statement: Complete the vertical analysis given data for the XYZ Company:
Part C
Ratio Analysis and Comparison: Complete the ratio for the XYZ Company, see part c tab. Compare your calculated ratios to the given industry ratios by category. Provide your assessment/future outlook for the xyz company:
Compute the following ratio for XYZ Company for 2015 (See Balance Sheet below). Comment on the results when compare to the industry averages and provide your thoughts as far as the furture outlook for XYZ Company.
This project is comprised of 3 parts: Horizontal Analysis of an Income statement: Complete the horizontal analysis given data for the XYZ Company. See part a tab. Vertical Analysis of an Income statement: Complete the vertical analysis given data for the XYZ Company. See part b tab. Ratio Analysis and Comparison: Complete the ratio analysis for the XYZ Company, see the part c tab. Compare your calculated ratios to the given industry ratios by category. Provide your assessment/future outlook of the XYZ Company. Comprised mostly of interest Expense for 2015. Comprised mostly of interest Expense for 2015.Explanation / Answer
XYZ horisontal analysis = increase(decrease)/ base year
Net sales = 100,560/335,200 = 30%
Vertical analysis
Current ratio = Current assets / current liabiltiies
= 498,042/146,050
=3.41
Quick ration = current assets - inventory - supplies / current liabiltiies
= 470,202/ 146,050
= 3.21:1
Receivable turover = Net sales/ average receivable
= 435,760 / 42,100
= 10.35
Debt ratio = total debts / total assets
= 621,000/ 1,119,209
= 55.48%
Return on equity = 59,405 /402,159 = (14.77%)
Net sales 30% Cost of goods sold 28.73% Gross profit 30.58% Research and development (9.09%) Selling expense 30% Administrative expense 10.42% Depreciation expense 105.56% Patent amortisation expense 1101.20% income from operations 17.99% Other revenures 6848% Net income loss 44.76%