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    Entity A Va Prob

    Uploaded by

    Neil Ryan Pontanares
    This document provides the statement of financial position and statement of profit or loss for Entity A as of December 31, 20x1. It requires performing a vertical analysis of the financial statements and answering true/false questions about Entity A's financial position and performance.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Entity A Va Prob

    Uploaded by

    Neil Ryan Pontanares
    56 views2 pages
    This document provides the statement of financial position and statement of profit or loss for Entity A as of December 31, 20x1. It requires performing a vertical analysis of the financial statements and answering true/false questions about Entity A's financial position and performance.

    Original Title

    Entity a Va Prob

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    This document provides the statement of financial position and statement of profit or loss for Entity A as of December 31, 20x1. It requires performing a vertical analysis of the financial statements and answering true/false questions about Entity A's financial position and performance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    56 views2 pages

    Entity A Va Prob

    Uploaded by

    Neil Ryan Pontanares
    This document provides the statement of financial position and statement of profit or loss for Entity A as of December 31, 20x1. It requires performing a vertical analysis of the financial statements and answering true/false questions about Entity A's financial position and performance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    BACC103 VERTICAL ANALYSIS

    The statement of financial position and comparative statements of profit or loss of Entity A are shown
    below:

    Entity A
    Statements of Financial Position
    As of December 31, 20x1

    ASSETS

    Cash and cash equivalents ₱159,600

    Trade and other receivables 320,400

    Inventory 306,000

    Prepaid assets 48,000

    Total current assets 834,000

    Property, plant & equipment 1,886,000

    Total noncurrent assets 1,886,000

    TOTAL ASSETS ₱2,720,000

    LIABILITIES

    Trade and other payables ₱556,200

    Total current liabilities 556,200

    Notes Payable 1,120,000

    Total noncurrent liabilities 1,120,000

    TOTAL LIABILITIES 1,676,200


    BACC103 VERTICAL ANALYSIS

    EQUITY

    Owner’s capital 1,043,800

    TOTAL LIABILITIES & EQUITY ₱2,720,000

    Entity A
    Statement of profit or loss
    For the years ended December 31, 20x1

    Sales ₱2,296,000

    Cost of slaes (1,010,240)

    GROSS PROFIT 1,285,760

    Salaries expense (943,400)

    Depreciation expense (66,010)

    Bad debts expense (16,020)

    Interest expense (112,000)

    PROFIT FOR THE YEAR ₱148,330

    Requirements:
    a. Perform a vertical analysis of the financial statements shown above.
    b. Answer the TRUE OR FALSE questions below.

    1. Entity A has more current resources than concurrent.


    2. A larger portion of Entity A’s resources pertain to the owner.
    3. Entity A uses leverage to finance its operations more than equity financing.
    4. After cost of sales, the next largest expenditure of Entity A pertains to its employees.
    5. Assuming all other income and expenses remain constant, if Entity A employs additional
    employees, Entity A will probably incur loss.

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