ABC Corporation

Horizontal and Vertical Analysis

STATEMENT OF FINANCIAL POSITION
2015
ASSETS
Cash and Cash Equivalents
AFS Securities
Accounts Receivable
Notes Receivable
Inventories
Prepaid Expenses
Equity-method Investments
Property Plant and Equipment
Accumulated Depreciation
Goodwill
TOTAL ASSETS

325,000
165,000
120,000
55,000
85,000
10,000
120,000
1,000,000
(85,000)
5,000
1,800,000

LIABILITIES
Accounts Payable
Accrued Interest Payable
Current potion of LT Debt
Accrued Salaries and Wages
Income Taxes Payable
Bonds Payable
Long term notes payable
Emplopyee related obligations
Deferred income taxes
TOTAL LIABILITIES

200,000
5,000
100,000
15,000
70,000
500,000
90,000
15,000
5,000
1,000,000

EQUITY
Ordinary Share Capital
Share Premium - Ordinary Shares
Retained Earnings
TOTAL EQUITY
TOTAL LIABILITIES

500,000
230,000
70,000
800,000
1,800,000

STATEMENT OF COMPREHENSIVE INCOME

Net sales
Cost of goods sold
Gross profit
Selling, General, and Administrative Expenses
Operating income
Other income and expenses

2015
1,800,000
(1,450,000)
350,000
(200,000)
150,000
(65,000)

Income before interest and taxes

Interest expense
Income before taxes
Income taxes (40%)
Net Income

85,000
(15,000)
70,000
(28,000)
42,000

Vertical
Analysis

Horizontal
Analysis

2014
275,000
145,000
115,000
40,000
55,000
5,000
115,000
900,000
(55,000)
5,000
1,600,000

Vertical
Analysis

18.06%
9.17%
6.67%
3.06%
4.72%
0.56%
6.67%
55.56%
-4.72%
0.28%
100.00%

18.18%
13.79%
4.35%
37.50%
54.55%
100.00%
4.35%
11.11%
54.55%
0.00%
12.50%

11.11%
0.28%
5.56%
0.83%
3.89%
27.78%
5.00%
0.83%
0.28%
55.56%

60.00%
0.00%
0.00%
50.00%
100.00%
-16.67%
50.00%
50.00%
0.00%
5.26%

125,000
5,000
100,000
10,000
35,000
600,000
60,000
10,000
5,000
950,000

7.81%
0.31%
6.25%
0.63%
2.19%
37.50%
3.75%
0.63%
0.31%
59.38%

27.78%
12.78%
3.89%
44.44%
100.00%

0.00%
130.00%
40.00%
23.08%
12.50%

500,000
100,000
50,000
650,000
1,600,000

31.25%
6.25%
3.13%
40.63%
100.00%

Vertical
Analysis
100.00%
-80.56%
19.44%
-11.11%
8.33%
-3.61%

Horizontal
Analysis
28.57%
23.93%
52.17%
25.00%
114.29%
160.00%

2014
1,400,000
(1,170,000)
230,000
(160,000)
70,000
(25,000)

17.19%
9.06%
7.19%
2.50%
3.44%
0.31%
7.19%
56.25%
-3.44%
0.31%
100.00%

Vertical
Analysis
100.00%
-83.57%
16.43%
-11.43%
5.00%
-1.79%

4.72%
-0.83%
3.89%
-1.56%
2.33%

88.89%
50.00%
100.00%
100.00%
100.00%

45,000
(10,000)
35,000
(14,000)
21,000

3.21%
-0.71%
2.50%
-1.00%
1.50%

ABC Corporation
Financial Ratios
RATIO
LIQUIDITY RATIO
Working Capital
Current Ratio
Quick Ratio
ACTIVITY RATIO
Accounts Receivable Turnover
Average Collection Period
Inventory Turnover Ratio
Average Days in Inventory
Operating Cycle
Accounts Payable Turnover
Average Payable Period
Cash Conversion Cycle
Total Assets Turnover
Fixed Asset Turnover
SOLVENCY RATIO
Debt Ratio
Debt to Equity Ratio
Times-interest-earned
Financial Leverage
PROFITABILITY
Return on Investements
Return on Assets
Return on Equity
Gross Profit Margin
Net Income Margin

2015

2014

370,000.00
1.95
1.71

360,000.00
2.31
2.09

15.30
23.90
20.70
17.60
41.50

12.70
28.70
23.40
15.60
44.30