Golden Garments, Inc.

Comparative Income Statement

For the year ended December 31, 2019 and 2018

Increase (Decrease)
2019 2018 Amount Percent
Sales revenue ₱ 2,000,000 ₱ 1,801,802 ₱ 198,198 11.0%
Expenses
Cost of goods sold ₱ 1,472,000 ₱ 1,309,910 ₱ 162,090 12.4%
Selling 248,000 230,000 18,000 7.8%
Administrative 138,000 142,000 -4,000 -2.8%
Total expenses ₱ 1,858,000 ₱ 1,681,910 ₱ 176,090 10.5%
Operating income ₱ 142,000 ₱ 119,892 ₱ 22,108 18.4%
Interest expense 27,907 29,270 -1,363 -4.7%
Income before taxes ₱ 114,093 ₱ 90,662 ₱ 23,431 25.8%
Income taxes (35%) 39,933 31,718 8,215 25.9%
Net Income ₱ 74,160 ₱ 58,904 ₱ 15,256 25.9%

Analysis:

Gilbert Company (Statement of Financial Position) – Trend Analysis

 December 31, 2015 to 2019

2019 % 2018 % 2017 % 2016 % 2015 %

Assets
Current assets
Cash 166.8 195.7 148.4 163.1 118 109.2 117.2 107.8 56.4 100
Marketable secuties 89.8 -57.3 79 -62.4 79.6 -62.1 79.2 -62.3 210.2 100
Trade receivables, net 583.8 11.8 539.8 3.4 460.6 -11.8 406.6 -22.1 522.2 100
Inventory 506.8 28.5 536.6 36.1 483.8 22.7 439.2 11.4 394.4 100
Other current assets 70.4 -42.0 104.2 -14.2 10.32 -91.5 101 -16.8 121.4 100
Total current assets 1,417.6 8.7 1,408 7.9 1,245.2 -4.6 1,143.2 -12.4 1,304.6 100
Land, building and equipment, net 1,440.2 68.7 1,430.2 67.5 1,380.8 61.7 1,364.4 59.8 853.8 100
Other assets 349.6 3,965.1 318.8 3,607.0 324.6 3,674.4 221 2,469.8 8.6 100
Total assets 3,207.4 48.0 3,157 45.7 2,950.6 36.2 2,728.6 25.9 2,167 100

Liabilities and Equity

Current Liabilities
Accounts payable 320.8 -14.5 303 -19.2 345.2 -7.9 362.8 -3.3 375 100
Notes payable 86.6 -23.1 123.2 9.4 177 57.2 210.2 86.7 112.6 100
Other current liabilities 57.6 -60.9 69.4 -52.9 50.2 -65.9 38.2 -74.1 147.4 100
Total current liabilities 465 -26.8 495.6 -22.0 572.4 -9.9 611.2 -3.7 635 100
Long term liabilities 401 23.4 457.8 40.9 481 48.0 532 63.7 325 100
Total Liabilities 866 -9.8 953.4 -0.7 1,053.4 9.7 1,143.2 19.1 960 100

Equity
Share capital common (P100 par) 1,240 45.9 1,240 45.9 1,240 45.9 1050 23.5 850 100
Capital paid in excess of par value 320 128.6 320 128.6 320 128.6 240 71.4 140 100
Retained earnings 781.4 260.1 643.6 196.6 337.2 55.4 295.4 36.1 217 100
Total equity 2,341.4 94.0 2,203.6 82.6 1,897.2 57.2 1,585.4 31.4 1,207 100
Total Liabilities and Equity 3,207.4 48.0 3,157 45.7 2,950.6 36.2 2,728.6 25.9 2,167 100

Trend Percentages
201 2016 2017 2018 2019
 5
Assets
Current assets
Cash 100 107.8% 109.2% 163.1% 195.7%
Marketable secuties 100 -62.3% -62.1% -62.4% -57.3%
Trade receivables, net 100 -22.1% -11.8% 3.4% 11.8%
Inventory 100 11.4% 22.7% 36.1% 28.5%
Other current assets 100 -16.8% -91.5% -14.2% -42.0%
Total current assets 100 -12.4% -4.6% 7.9% 8.7%
Land, building and equipment, net 100 59.8% 61.7% 67.5% 68.7%
2,469.8 3,674.4 3,607.0 3,965.1
Other assets
100 % % % %
Total assets 100 25.9% 36.2% 45.7% 48.0%

Liabilities and Equity

Current Liabilities
Accounts payable 100 -3.3% -7.9% -19.2% -14.5%
Notes payable 100 86.7% 57.2% 9.4% -23.1%
Other current liabilities 100 -74.1% -65.9% -52.9% -60.9%
Total current liabilities 100 -3.7% -9.9% -22.0% -26.8%
Long term liabilities 100 63.7% 48.0% 40.9% 23.4%
Total Liabilities 100 19.1% 9.7% -0.7% -9.8%

Equity
Share capital common (P100 par) 100 23.5% 45.9% 45.9% 45.9%
Capital paid in excess of par value 100 71.4% 128.6% 128.6% 128.6%
Retained earnings 100 36.1% 55.4% 196.6% 260.1%
Total equity 100 31.4% 57.2% 82.6% 94.0%
Total Liabilities and Equity 100 25.9% 36.2% 45.7% 48.0%

Analysis:
 The total asset shows an upward trend as it increased by 125.9% in 2016, 136.2% in 2017, 145.7% in 2018, and 148.0% in 2019. While the
total liabilities show a downward trend as it increased by 119.1% in 2016, then decreased by 109.7% in 2017, 99.3% in 2018, and 90.2% in 2019.
Lastly, the total equity shows an upward trend as it increased by 131.4% in 2016, 157.2% in 2017, 182.6% in 2018, and 194.0% in 2019. In
conclusion, Gilbert Company’s total asset, liabilities, and equity indicates a good performance and is improving based on the trends as it increases its
value over the 5-year period.
Common Size
 2019 2018 2019 2018
Assets
Current assets
Cash 166.8 148.4 5.2% 4.7%
Marketable secuties 89.8 79 2.8% 2.5%
Trade receivables, net 583.8 539.8 18.2% 17.1%
Inventory 506.8 536.6 15.8% 17.0%
Other current assets 70.4 104.2 2.2% 3.3%
Total current assets 1,417.6 1408 44.2% 44.6%
Land, building and equipment, net 1,440.2 1,430.2 44.9% 45.3%
Other assets 349.6 318.8 10.9% 10.1%
Total assets 3,207.4 3,157 100.0% 100.0%

Liabilities and Equity

Current Liabilities
Accounts payable 320.8 303 10.0% 9.6%
Notes payable 86.6 123.2 2.7% 3.9%
Other current liabilities 57.6 69.4 1.8% 2.2%
Total current liabilities 465 495.6 14.5% 15.7%
Long term liabilities 401 457.8 12.5% 14.5%
Total Liabilities 866 953.4 27.0% 30.2%

Equity
Share capital common (P100 par) 1240 1240 38.7% 39.3%
Capital paid in excess of par value 320 320 10.0% 10.1%
Retained earnings 781.4 643.6 24.4% 20.4%
Total equity 2,341.4 2,203.6 73.0% 69.8%
Total Liabilities and Equity 3,207.4 3,157 100.0% 100.0%