Activity 3 & 4

GROUP 6
Ramos, Shera Joyce B.
Marino, Janelle A.
Guarisma, Rona May
Degala, Renniel
Calatero, Jeremiah
Villaverde, Carlsten Joshua
 BALANCE (In Million pesos)
SHEET Year 3 Year 2 Year 1
Cash and temporary investments 31.43 11.36 22.23
Accounts receivables 498.61 364.94 294.10
Inventories 161.59 118.46 127.78
Oher current assets 0.84 0.94 0.99
Total current Assets 692.47 495.70 445.10
Investments 28.19 28.18 29.18
PPEs 486.65 456.97 421.67
Other Assets 112.66 113.76 67.10
TOTAL ASSETS 1,319.97 1,094.61 963.05
 BALANCE (In Million pesos)
SHEET Year 3 Year 2 Year 1
Notes payable 504.27 264.08 109.44
Accts payable & accrued exp. 127.10 133.71 124.71
Customer’s deposits 62.82 28.80 36.91
Income taxes payable 9.21 15.86 28.40
Long-term debt current portion 50.00 41.00 35.00
Total current liabilities 753.40 481.45 334.46
Long term debt net of current 63.00 122.00 163.00
portion
Total liabilities 816.40 603.45 497.46
Stockholders Equity 503.57 491.16 465.59
Total Liabilities & Stockholder’s 1,319.97 1,094.61 963.05
Equity
 INCOME (In Million pesos)
STATEMENT Year 3 Year 2 Year 1
Net sales 792.86 892.54 886.34
Cost of good sold 597.06 706.57 669.87
Gross profit 195.80 185.97 216.47
Operating expenses 117.42 110.65 106.01
Operating income 78.38 75.32 110.46
Other expenses 47.65 25.34 24.52
Income before income tax 30.73 49.98 85.94
Provision for income tax 11.26 17.34 30.40
Net income 19.47 32.64 55.54
 Profitability – a class of financial
metrics that are used to assess a
business's ability to generate
earnings relative to its revenue,
operating costs, balance sheet
assets, and shareholders' equity
over time, using data from a
specific point in time.
 Liquidity - Liquidity ratios measure a company's
ability to pay debt obligations and its margin of
safety through the calculation of metrics including
the current ratio, quick ratio, and operating cash
flow ratio.
 Efficiency- can calculate the turnover of
receivables, the repayment of liabilities, the
quantity and usage of equity, and the general use
of inventory and machinery. This ratio can also be
used to track and analyze the performance of
commercial and investment banks.
 Gross Profit Margin:
Gross profit/Net sales

YEAR 3 YEAR 2 YEAR 1

195.80/792.27 185.97/892.54 216.47/886.34
= 0.2471 = 0.2084 = 0. 2442
 Operating Profit Margin
Operating Profit/Net sales

YEAR 3 YEAR 2 YEAR 1

78.38/792.27 75.32/892.54 110.46/886.34
= 0.0989 = 0.0844 = 0.1246
 Net Profit Margin:
Net profit/Net sales

YEAR 3 YEAR 2 YEAR 1

19.47/792.27 32.64/892.54 55.54/886.34
= 0.0245 = 0.0366 = 0.0627
 Return on Equity:
Net income/ Ave. Equity

YEAR 3 YEAR 2 YEAR 1

19.47/251.79 32.64/245.58 55.54/232.80
= 0.0773 = 0.1329 = 0.2386
 Liquidity:
 Current Ratio:
Current assets/current Liability

YEAR 3 YEAR 2 YEAR 1

692.47/753.40 495.70/481.45 445.10/334.46
= 0.92 = 1.03 = 1.33
 Working Capital:
Current assets-current Liability

YEAR 3 YEAR 2 YEAR 1

692.47-753.40 495.70-481.45 445.10-334.46
= -60.93 = 14.25 = 110.64
 Quick ratio:
(Cash+Marketable Securities+AR)/Total Current
Liabilities
YR3: 31.43+498.61
YR2: 11.36+364.94
YR1: 22.23+294.10

YEAR 3 YEAR 2 YEAR 1

530.04/692.47 376.3/495.70 316.33/445.10
= 70% = 78% = 95%
 Working Capital to Total Asset:
Net Working Capital/Total Asset

YEAR 3 YEAR 2 YEAR 1

-60.93/1,319.97 14.25/1,094.61 110.64/963.05
= -4% = 1% = 11%
 Liquidity Ratios
YEAR 3 YEAR 2 YEAR 1
Current ratio = 0.92 = 1.03 = 1.33
Working = -60.93 = 14.25 = 110.64
Capital
Quick Ratiio = 0.7654 = 0.7591 = 0.7107
Working = -4% = 1% = 11%
Capital to
total ASSET
 Efficiency:
Cost of good sold/Average inventories

YEAR 3 YEAR 2 YEAR 1

597.06/140.02 706.57/123.12 669.87/127.78
= 4.26 = 5.74 =5.24
ROE= Net income/Ave. Equity

YEAR 3 YEAR 1
19.47/497.37 55.54/465.59
= 3.91 = 11.93
 ROE= NPM x AT x Leverage
Formula:
NPM= Net income/ sales
AT= NT/ ATA

792.86/659.99 =1.20

886.34/481.25= 1.84
Leverage= ATA/ATE
 659.99/251.79 =2.62

 481.95/232.80=2.07
YEAR 3 YEAR 1
2.45 x 0.66x 2.07 6.27x 0.92 x 2.07
= 3.35 = 11.94
BALANCE SHEET (In million Pesos)
Cash and temporary investments 17.43
Accounts receivables 355.68
Inventories 1,059.82
Prepayments 74.12
Total current Assets 1,507.05
PPEs 300.30
Other Asssets 17.70
TOTAL ASSETS 1,825.05
BALANCE SHEET (In million Pesos)
Loans payable 261.13
Accts payable and accrues exps. 140.33
Acceptance payable 194.41
Income taxes payable 23.85
Total current liabilities 619.71
Stockholder’s equity 1,205.33
Total Liabilities & Stockholder’s 1,825.05
Equity
INCOME STATEMENT (in million pesos)
Net sales 2,126.96
Cost of operating expenses 1,831.08
Income form operation 295.88
Other income 20.53
Income before income tax 316.41
Provision for income tax 104.16
Net Income 212.25
 INDUSTTRY AVE. ALASKA
CURRENT RATIO 2.26 2.43
QUICK RATIO 1.24 0.60
DEBT TO EQUITY 0.73 0.51
DEBT RATIO 0.3869 0.34
EQUITY RATIO 0.6131 0.66
ASSET TURNOVER 1.1213 1.17
NET PROFIT MARGIN 0.0878 0.0998
RETURN ON ASSETS 0.097 0.1163
RETURN ON EQUITY 0.1302 0.1761
 Current Ratio:
Current asset/current liability
1,507.05/619.72
= 2.43

 Quick Ratio:
Cash+cash equivalents+current receivables/Current
Liabilities
17.43+355.68/619.72
= 0.60
 Debt to Equity:
Total Liabilities/Total Equity
619.72/1,205.33
= 0.51

 Debt Ratio:
Total Liabilities/Total Assets
619.72/1,825.05
= 0.34
 Equity Ratio:
shareholders' equity/total assets
1,205.33/1,825.05
= 0.66

 Asset turnover:
Net sales/Ave. total assets
2,126.96/1,825.05
= 1.17
 Net profit margin
Net income/net sales
212.25/2,126.96
= 0.0998

 Return on Assets:
net income/average total assets
212.25/1,825.05
= 0.1163
 Return on Equity
Net income/Equity
212.25/1,205.33
= 0.1761