MBA A. CO.

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDING DECEMBER 31

2018 2017

SALES ₱ 100,000.00 ₱ 97,500.00

LESS: COST OF GOOD SOLD 61,250.00 55,000.00
GROSS MARGIN ₱ 38,750.00 ₱ 42,500.00
OPERATING EXPENSE (26,000.00) (26,250.00)
INTEREST EXPENSE (2,500.00) (2,250.00)
INCOME BEFOR TAX ₱ 10,250.00 ₱ 14,000.00
INCOME TAXES 3,590.00 4,900.00
NET INCOME AFTER TAX ₱ 6,660.00 9,100.00
ADD BEGINNING RETAINED EARNINGS 10,000.00 4,750.00
₱ 16,660.00 ₱ 13,850.00
LESS: DIVIDENDS 4,750.00 3,850.00
RETAINED EARNINGS ENDING BALANCE ₱ 11,910.00 ₱ 10,000.00

MBA A. CO.
STATEMENT OF FINANCIAL POSITION
DECEMBER 31

2018 2017

CASH ₱ 7,500.00 ₱ 5,250.00

ACCOUNTS RECEIVABLE (NET ) 11,000.00 8,250.00
INVENTORIES 20,500.00 19,000.00
FIXED ASSETS (NET ) 34,410.00 37,500.00
TOTAL ASSETS 73,410.00 70,000.00

CURRENT LIABILITIES ₱ 11,500.00 ₱ 12,500.00

BONDS PAYABLE, 10 PERCENT 25,000.00 22,500.00
COMMON STOCK PHP 2.50 PAR 25,000.00 25,000.00
RETAINED EARNINGS 11,910.00 10,000.00
TOTAL EQUITIES 73,410.00 70,000.00

YEAR END PRICE OF STOCK ₱ 6.25 ₱ 8.75

REQUIRMENTS:
1. Perfom horizontal analysis on MBA A. Co.'s financial statements.
2. Perfom verticall analysis on MBA A. Co.'s financial statements.
3. Perfom ratio analysis on MBA A. Co.'s financial statements by calculating the following:
a. Current ratio
b. Quick Ratio
c. Receivables Turn over ratio
d. Age of account receivable (use 365 days)
e. Inventory Turn over Ratio
f. Age of Inventory (use 365 days)
g. Times interest Earned
h. Debt Equity Ratio
i. Debt Ratio
j. Equity Ratio
k. Return on sales
l. Return on Total assets
m. Return on Owners Equity
n. Earnings per share (EPS)
o. Price earningbRatio
p. Dividend Yield
q. Dividend pay out