PROBLEM A HORIZONTAL ANALYSIS

2020 2019 AMOUNT %

Liabilities and stockholders’ Equity
Current liabilities:
Accounts Payable 177,000.00 44,000.00 133,000.00 3.02
PHP PHP PHP
Notes Payable 113,000.00 6,000.00 107,000.00 17.83
PHP PHP PHP
Total Current Liabilities 290,000.00 50,000.00 240,000.00 4.80
PHP PHP PHP
Longterm
Liabilities
Bonds payable, 185,000.00 80,000.00 105,000.00 1.31
8% PHP PHP PHP
Total Liabilities 475,000.00 130,000.0 345,000.00 2.65
PHP PHP 0 PHP

Stockholder's equity
Preferred stock 130,000.00 20,000.00 110,000.00 5.50
PHP PHP PHP
Common stock 170,000.00 60,000.00 110,000.00 1.83
PHP PHP PHP
Additional paid-in capital 120,000.00 10,000.00 110,000.00 11.00
PHP PHP PHP
Total paid-in capital 420,000.00 90,000.00 330,000.00 3.67
PHP PHP PHP
Retained earnings 190,000.00 69,700.00 120,300.00 1.73
PHP PHP PHP
Total Stockholders equity 610,000.00 159,700.0 450,300.00 2.82
PHP PHP 0 PHP
Total Liabilities and 1,085,000.00 289,700.0 795,300.00 2.75
PHP PHP 0 PHP
Stockholders equity

- the data below shows increase in current liabilities in the year of 2020 (4.80%) total long term liabilities
(2.65), shareholders equity at (2.82%)

-it means that increase in liabilities in Jv lopez corp. Purchase goods on credit conserving its cash, also
notes payable increase in (17.83%) this boost the cashflow because it received money from the loan.

- in conclusion, it has performing well.

VERTICAL
ANALYSIS
Liabilities and stockholders Equity 2020 2019 2020 2019
Current liabilities:
Accounts Payable 177,000 44,000 16.31% 15.19%
Notes Payable 113,000 6,000 10.41% 2.07%
Total Current Liabilities 290,000 50,000 26.73% 17.26%
Longterm
Liabilities
Bonds payable,
8% 185,000 80,000 17.05% 27.61%
Total Liabilities 475,000 130,000 43.78% 44.87%
Stockholder's equity
Preferred stock 130,000 20,000 11.98% 6.90%
Common stock 170,000 60,000 15.67% 20.71%
Additional paid-in capital 120,000 10,000 11.06% 3.45%
Total paid-in capital 420,000 90,000 38.71% 31.07%
Retained earnings 190,000 69,700 17.51% 24.06%
Total Stockholders equity 610,000 159,700 56.22% 55.13%
100.00
Total Liabilities and 1,085,000 289,700 100% %
Stockholders equity

- in 2019 total liabilities has (43.78) total total stockholders equity has (56.22%)

In 2020 total liabilities has ( 44.87%) total stockholders equity has ( 55.23%)

Financial analysis

- In 2019 Jv lopez corp. Retained earnings has (24.06%) and increase 2020 at (17.81%,)
- It shows that, company performing well.
 2019 2018 2017 2016 2015
22,405.0 12,244.0 7,112.0 4,991.0 1,820.0
REVENUES 0 0 0 0 0
22,033.0 11,966.0 6,870.0 4,803.0 1,701.0
EXPENSES 0 0 0 0 0
NET INCOME 372 278 242 188 119

TREND ANALYSIS
2019 2018 2017 2016 2015
REVENUES 111% 106% 103% 102% 100%
EXPENSES 112% 106% 103% 102% 100%
NET INCOME 313% 234% 203% 158% 100%
RATIO ANALYSIS

1) LIQUIDITY RATIO
65,000 / 42,000 = 1.55 :1

-This means that for every 1 current liability there is an equivalent 1.55 current assets

2) ACID TEST RATIO

50,000/ 42,000= 1.19:1

-this means that for every current liabilities there is an 1.19 quick assets in 2020 for JV Lopez corp.

3) ACCOUNTS RECEIVABLE TURN OVER

494,000(17,000+20,000)/2 =26.70%

- This means that account receivable was converted into cash as often as 26.70% times for the whole
year in 2020

4)NUMBER OF DAYS SALES IN ACCOUNT RECEIVABLES

365/26.70%= 14 DAYS

-this means that JV lopez corp collected every 14 days in 2020 in sales of account

5) INVENTORY TURN OVER

140,000/(10,000+15,000)/2 =11.2%
-this means that on average Jv lopez corp were able to sold 11.2% times for the whole year of 2020
6) EQUITY RATIO
234,390/346,390 =67.67%
-this means that 67.67% of total assets was provided by stockholders.
7) NET INCOME TO NET SALES
53,690/ 494,000 = 10.87%
- this means that 10.87% of the sales retained earnings as profit of jv lopez corp.

8) RETURN ON STOCKHOLDERS EQUITY

53,690/ (180,000+234,390)/2 = 25.91%

--this means that JV lopez corp was able to produced 25.91% of the average coomon stockholders equity
as income in 2020
9) EARNINGS PER SHARE
53,690 (17,000/27,400)/2 = P 2.42

- This means that comapany was able to produced P 2.42 of earnings per common share.

10) PRICE EARNINGS RATIO

20/2.42%= 8.26:1

--this means for every earnings there is equivalent price of 8.26