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  • Laki-Hito Income Statement Horizontal Analysis: Sales

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    This document shows the horizontal analysis of the income statement of LAKI-HITO for the first five years of operations. It analyzes how each line item has changed in percentage terms compared to the first year. Sales increased each year due to rising prices and increased production. Cost of goods sold decreased slightly due to higher feed costs. Expenses like commissions and depreciation increased with more sales and assets, while licenses and interest were one-time costs. Net income grew significantly each year as higher sales and production outweighed rising costs.

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    This document shows the horizontal analysis of the income statement of LAKI-HITO for the first five years of operations. It analyzes how each line item has changed in percentage terms compared to the first year. Sales increased each year due to rising prices and increased production. Cost of goods sold decreased slightly due to higher feed costs. Expenses like commissions and depreciation increased with more sales and assets, while licenses and interest were one-time costs. Net income grew significantly each year as higher sales and production outweighed rising costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    12 views2 pages

    Laki-Hito Income Statement Horizontal Analysis: Sales

    Uploaded by

    ivymiz
    This document shows the horizontal analysis of the income statement of LAKI-HITO for the first five years of operations. It analyzes how each line item has changed in percentage terms compared to the first year. Sales increased each year due to rising prices and increased production. Cost of goods sold decreased slightly due to higher feed costs. Expenses like commissions and depreciation increased with more sales and assets, while licenses and interest were one-time costs. Net income grew significantly each year as higher sales and production outweighed rising costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    LAKI-HITO Income Statement Horizontal Analysis

    Year 1
    Sales Cost of Goods Sold GROSS INCOME Expenses: SELLING AND ADMINISTRATIVE EXPENSE Salaries-Manager SSS/PHIC/HDMF Contribution Office Supplies Expense Sales Commission Delivery Expense Communication Expense Monthly dues-LAACPO Licenses Depreciation Expense OPERATING EXPENSE Utilities Expenses Repairs and maintenance Expense Rent Expense FINANCE COST Interest expense on Loan Payable Total Expenses NET INCOME

    Year 2 202.56% 206.99% 195.25%

    Year 3 269.16% 213.08% 367.76%

    Year 4 276.83% 213.50% 380.37%

    Year 5 294.53% 213.85% 408.63%

    100.00% 100.00% 100.00%

    100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

    100.00% 130.74% 100.00% 168.45% 216.67% 109.09% 109.09% 0.00% 109.07% 100.00% 216.67% 100.00% 0.00% 83.73% 114.51%

    100.00% 137.15% 100.00% 231.64% 255.13% 109.09% 109.09% 0.00% 161.87% 100.00% 255.13% 100.00% 0.00% 93.75% 617.11%

    100.00% 137.15% 100.00% 239.81% 255.13% 109.09% 109.09% 0.00% 164.98% 100.00% 255.13% 100.00% 0.00% 94.41% 634.15%

    100.00% 137.15% 100.00% 240.57% 255.13% 109.09% 109.09% 0.00% 165.00% 100.00% 255.13% 100.00% 0.00% 94.46% 671.39%

    For the first five years, the percentage of sales is increasing because the selling price is increased for each year. Also, on the succeeding years after the first year of operations, additional ponds are constructed which results to additional number of kilos sold. The percentage of cost of goods sold is decreasing by a small percentage due to the increase in the cost of feeds. The sales commission is in an increasing trend due to the increase in sales. The license fees are only incurred on the first year of operations which is why on the next four years, no such fees are incurred. Depreciation expense is also increasing in percentage as the cost of the equipment is allocated based on its useful life. Interest expense on loan payable is only incurred on the first year since during that year, the business loaned from the bank. On the succeeding years, no interest expense is incurred. The rest of the expenses are

    almost always the same for the subsequent years. Net Income for the first five years increased tremendously due to the increase of selling price and the number of kilos sold. Expenses and cost of goods sold are fully covered by the gross profit for each year. This results to an increasing trend in net income.

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