ANTONIO, APRIL JOY P.

BSAB 3B

TEACHING AND LEARNING ACTIVITIES

Activity number 1: Comparative Financial Statement Analysis
JFC Corporation
COMPARATIVE STATEMENT OF FINANCIAL POSITION
December 31
ASSETS 2013 2014
Current Assets 18,384 24.012
Property, Plant & Equipment (Net) 11,772 13,363
Intangibles 15,870 16,734
P 46,026 P 54,109
Total Assets

LIABILITIES AND STOCKHOLDERS EQUITY

Current liabilities 15,619 19,091
Long-term liabilities 7,047 6,950
Stockholders’ equity 23,362 28,077
Total liabilities and stockholders’ equity P 46,028 P 54,118

Solutions
ASSETS 2013 2014 Increase Percentage
(Decrease) Change
Current Assets 18,384 24,012 5,628 30.7 %
Property, Plant & 11,772 13,363 1,591 14%
Equipment (Net)
Intangibles 15,870 16,734 864 5.4%
Total Assets 46,026 54,109 8,083 18%

LIABILITIES AND
STOCKHOLDERS EQUITY
Current liabilities 15,619 19,091 3,472 22%

Long-term liabilities 7,047 6,950 (97) -`1.4%

Stockholders’ equity 23,362 28,077 4,715 20%
Total liabilities and 46,028 54,118 8,090 18%
stockholders’ equity
 JFC Corporation
COMPARATIVE STATEMENT OF FINANCIAL POSITION
December 31
2013 2014

Assets 80,283 90,671

Cost of goods sold 62,285 73,728
Gross profit 14,998 16,943
Operating expense 5,931 6,137
Net income 4,723 5,488

Solutions
2013 2014 Increase Percentage Change
(Decrease)

Assets 80,283 90,671 10,388 13%

Cost of goods 62,285 73,728 11,443 18%
sold
Gross profit 14,998 16,943 11,945 13%
Operating 5,931 6,137 206 3.5%
expense
Net income 4,723 5,488 765 16.2%

Activity 2: Essay
Discuss the significance of financial statement analysis to any of the following:
1. Finance Manager- two of the many significance of financial statement analysis to
finance manager are they help them to analyse the financial strengths and weaknesses
and creditworthiness of the company. And the other one, it helps on providing
information about the cash position that the company is holding because finance
manager is responsible for the financial health of an organization.
2. Top Management – it help to assess whether the resources of the firm are used in the
most efficient manner. Also, financial statement analysis helps top management in
determining the success in the operations of the company. And since top management
role is more than making decisions that affect all employees, they are the one who can
see the efforts of every employees and they give appreciation in individual’s
performance.
3. Trade Payables –it gives appreciation and appraisal to the ability of the company to
meet its short-term obligations. Financial statement analysis also gives judgement
regarding on the probability of the firm consistent ability in meeting all its financial
responsibility in the future.
4. Lenders –financial statement analysis help lenders in determining the ability of the
company to generate cash and to ascertain the company’s profitability.
5. Investors- the significance of financial statement analysis to the investors was they helps
them in predicting the bankruptcy and failure probability of the business firm or
enterprise.