Horizontal Analysis (absolute) = Amount in comparison year - Amount

Horizontal Analysis (%) = [(Amount in comparison year - Amount in base year)/Am

Hola Company
Comparative Statement of Financial Performance
For the years ended December 31, 2018, 2019 and 2020

2020 2019 2018

Sales 45,000 50,000 40,000
Less: Sales returns 1,000 2,000 3,000
Net sales 44,000 48,000 37,000
Less: Cost of goods sold 24,000 35,000 26,000
Gross profit 20,000 13,000 11,000
Less: Selling and general expenses 12,000 10,000 8,000
Operating income 8,000 3,000 3,000
Less: Other expenses 3,000 3,500 4,000
Income (loss) before income tax 5,000 -500 -1,000
Less: Income tax (refund) 2,000 -200 1,000
Net income (loss) 3,000 -300 -2,000

Vertical analysis = One particular/Net sales *100

Hola Company
Comparative Statement of Financial Performance
For the years ended December 31, 2018, 2019 and 2020

2020 2019 2018

Sales 45,000 50,000 40,000
Less: Sales returns 1,000 2,000 3,000
Net sales 44,000 48,000 37,000
Less: Cost of goods sold 24,000 35,000 26,000
Gross profit 20,000 13,000 11,000
Less: Selling and general expenses 12,000 10,000 8,000
Operating income 8,000 3,000 3,000
Less: Other expenses 3,000 3,500 4,000
Income (loss) before income tax 5,000 -500 -1,000
Less: Income tax (refund) 2,000 -200 1,000
Net income (loss) 3,000 -300 -2,000
ACTUAL NET INCOME (LOSS)
 unt in comparison year - Amount in base year
on year - Amount in base year)/Amount in base year] * 100

la Company
ent of Financial Performance
cember 31, 2018, 2019 and 2020
Increase (Decrease) Increase (Decrease)
Amount (2020) Percentage (2020) Amount (2019) Percentage (2019)
-5,000 -10.00% 10,000 25.00%
-1,000 -50.00% -1,000 -33.33%
-4,000 -8.33% 11,000 29.73%
-11,000 -31.43% 9,000 34.62%
7,000 53.85% 2,000 18.18%
2,000 20.00% 2,000 25.00%
5,000 166.67% 0 0
-500 -14.29% -500 -12.50%
5,500 0 500 0
2,200 0 -1,200 -120.00%
3,300 0 1,700 0

ular/Net sales *100

y
ncial Performance
, 2018, 2019 and 2020
Vertical Analysis
2020 2019 2018 2020
102.27% 104.17% 108.11%
2.27% 4.17% 8.11%
100.00% 100.00% 100.00%
54.55% 72.92% 70.27% 54.54 in word
45.45% 27.08% 29.73% 45.46 in word
27.27% 20.83% 21.62%
18.18% 6.25% 8.11% 18.19 in word
6.82% 7.29% 10.81%
11.36% -1.04% -2.70% 11.37 in word
4.55% -0.42% 2.70% 4.54 in word
6.82% -0.63% -5.41% 6.83 in word
6.81% -0.62% -5.40%
 Horizontal Analysis (absolute) = Amount in comparison year - Amount in base year
Horizontal Analysis (%) = (Amount/Amount in base year) * 100

Hola Company
Comparative Statement of Financial Position
December 31, 2019 and 2020

ASSETS 2020 2019

Cash 3,000 5,000
Accounts Receivable 40,000 25,000
Inventory 27,000 30,000
Long-term investments 15,000 0
Land, building and equipment (net) 100,000 75,000
Intangibles 10,000 10,000
Other assets 5,000 20,000
Total 200,000 165,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities 30,000 47,000
Long-term liabilities 88,000 74,000
Total liabilities 118,000 121,000
8% Preferred stock 10,000 9,000
Common stock 54,000 42,000
Additional paid-in-capital 5,000 5,000
Retained earnings 13,000 -12,000
Total stockholders' equity 82,000 44,000
Total liabilities and owners' equity 200,000 165,000

Vertical analysis = One particular/Total assets *100

Vertical analysis = One particular/Total liabilities and stockholders equity *100

Hola Company
Comparative Statement of Financial Position
December 31, 2019 and 2020

ASSETS 2020 2019

Cash 3,000 5,000
Accounts Receivable 40,000 25,000
Inventory 27,000 30,000
Long-term investments 15,000 0
Land, building and equipment (net) 100,000 75,000
Intangibles 10,000 10,000
Other assets 5,000 20,000
Total 200,000 165,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 30,000 47,000
Long-term liabilities 88,000 74,000
Total liabilities 118,000 121,000
8% Preferred stock 10,000 9,000
Common stock 54,000 42,000
Additional paid-in-capital 5,000 5,000
Retained earnings 13,000 -12,000
Total stockholders' equity 82,000 44,000
Total liabilities and owners' equity 200,000 165,000
 year - Amount in base year
n base year) * 100

Position
0
Increase (Decrease)
Amount Percentage
-2,000 -40.00%
15,000 60.00%
-3,000 -10.00%
15,000 undefined In word, 0 which is wrong
25,000 33.33%
0 0
-15,000 -75.00%
35,000 21.21%

-17,000 -36.17%
14,000 18.92%
-3,000 -2.48%
1,000 11.11%
12,000 28.57%
0 0
25,000 0
38,000 86.36%
35,000 21.21%

l assets *100
d stockholders equity *100

Position
0
Vertical Analysis
2020 2019
1.50% 3.03%
20.00% 15.15%
13.50% 18.18%
7.50% 0
50.00% 45.45% 45.46% in word
5.00% 6.06%
2.50% 12.12%
100.00% 100.00% 99.99% if add manually
 15.00% 28.48%
44.00% 44.85%
59.00% 73.33%
5.00% 5.45% 5.46% in word
27.00% 25.45%
2.50% 3.03%
6.50% -7.27%
41.00% 26.67% 26.66% if add manually E51:E53
100.00% 100.00% 99.99% if add manually
 Hola Company
Comparative Statement of Financial Position
December 31, 2019 and 2020
ASSETS 2020 2019
Cash 3,000 5,000
Accounts Receivable 40,000 25,000
Inventory 27,000 30,000
Long-term investments 15,000 0
Land, building and equipment (net) 100,000 75,000
Intangibles 10,000 10,000
Other assets 5,000 20,000
Total 200,000 165,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities 30,000 47,000
Long-term liabilities 88,000 74,000
Total liabilities 118,000 121,000
8% Preferred stock 10,000 9,000
Common stock 54,000 42,000
Additional paid-in-capital 5,000 5,000
Retained earnings 13,000 -12,000
Total stockholders' equity 82,000 44,000
Total liabilities and owners' equity 200,000 165,000

Hola Company
Comparative Statement of Financial Performance
December 31, 2019 and 2020
2020 2019
Sales 45,000 50,000
Less: Sales returns 1,000 2,000
Net sales 44,000 48,000
Less: Cost of goods sold 24,000 35,000
Gross profit 20,000 13,000
Less: Selling and general expenses 12,000 10,000
Operating income 8,000 3,000
Less: Other expenses 3,000 3,500
Income (loss) before income tax 5,000 -500
Less: Income tax (refund) 2,000 -200
Net income (loss) 3,000 -300
 1. Current Ratio
Current assets Current liabilities
70,000 30,000
2.33:1 or 2.33x

2. Quick Ratio
CA w/o inventories and pre… Current liabilities
43,000 30,000
1.43:1

3. Receivables Turnover
Net Credit Sales Average Receivables
44,000 32,500
1.35x

Ave. Collection Period

No. of working days in a year Receivables TO
360 1.35
266.67 days

4. Inventory Turnover
COGS Average inventory
24,000 28,500
0.84

Ave. Inventory Days

No. of working days in a year Inventory TO
360 0.84
427.5

5. Payables Turnover
Net Credit Purchases Average Payables
Hola Company has current assets 2.33 times larger than current liabilities. In other words, for every P1 of current liability, the c

the quick ratio of 1.43 shows that Hola Company has enough current assets to cover its current liabilities. For every P1 of curre

Hola Company collected its receivables 1.35 times on average that year. In other words, the company converted its receivables

customers on average take 267 days to pay their receivables.

P1 of current liability, the company has 2.33 of current assets available to pay for it.

ties. For every P1 of current liability, the company has 1.43 of quick assets to pay for it.

y converted its receivables to cash 1.35 times that year.