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    Assignment 1

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    Bernardo Kathleen
    The document provides financial statements for Eastern Home Corporation for the years ending December 31, 2021 and 2022. It includes an income statement, statement of financial position, and instructions to perform ratio analysis, vertical analysis, and horizontal analysis on the statements, as well as additional financial details.

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    Assignment 1

    Uploaded by

    Bernardo Kathleen
    12 views3 pages
    The document provides financial statements for Eastern Home Corporation for the years ending December 31, 2021 and 2022. It includes an income statement, statement of financial position, and instructions to perform ratio analysis, vertical analysis, and horizontal analysis on the statements, as well as additional financial details.

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    The document provides financial statements for Eastern Home Corporation for the years ending December 31, 2021 and 2022. It includes an income statement, statement of financial position, and instructions to perform ratio analysis, vertical analysis, and horizontal analysis on the statements, as well as additional financial details.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    12 views3 pages

    Assignment 1

    Uploaded by

    Bernardo Kathleen
    The document provides financial statements for Eastern Home Corporation for the years ending December 31, 2021 and 2022. It includes an income statement, statement of financial position, and instructions to perform ratio analysis, vertical analysis, and horizontal analysis on the statements, as well as additional financial details.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 3

    Assignment I

    Finman 3
    Financial Analysis and Reporting

    Perform the following analysis on the given financial statements:


    1. Ratio Analysis (Both years).
    2. Vertical Analysis (Both years).
    3. Horizonal Analysis.
    Additional:
    • Net Purchases is equal to ₱450,000.00 in 2021 and ₱975,000.00
    in 2022
    • No. of Share of Common Stock outstanding is equal to 25,000.00 and
    35,000.00
    • Stock price is at ₱175.50 in 2021 and ₱180.00.
    Eastern Home Corporation
    STATEMENT OF FINANCIAL POSITION
    At December 31, 2021 and 2022

    ASSETS 2021 2022


    Current Assets
    Accounts Receivables, net ₱ 1,500,000.00 ₱ 900,000.00
    Cash and Cash Equivalents ₱ 500,000.00 ₱ 2,300,000.00
    Inventories ₱ 2,750,000.00 ₱ 4,812,500.00
    Marketable Securities ₱ 200,000.00 ₱ 210,000.00
    Notes Receivables ₱ 150,000.00 ₱ 120,000.00
    Prepaid Expense ₱ 500,000.00 ₱ 535,000.00
    Total Current Assets ₱ 5,600,000.00 ₱ 8,877,500.00

    Property Plant and Equipment


    Building, net ₱ 10,750,000.00 ₱ 10,320,000.00
    Furnitures and Fixtures ₱ 990,000.00 ₱ 891,000.00
    Equipment, net ₱ 750,000.00 ₱ 600,000.00
    Vehicles, net ₱ 1,500,000.00 ₱ 1,200,000.00
    Total PPE ₱ 13,990,000.00 ₱ 13,011,000.00

    TOTAL ASSETS ₱ 19,590,000.00 ₱ 21,888,500.00

    LIABILITIES
    Current Liabilities
    Accounts Payable ₱ 300,000.00 ₱ 750,000.00
    Accruals ₱ 1,250,000.00 ₱ 1,250,000.00
    Notes Payable ₱ 750,000.00 ₱ 500,000.00
    Short-Term Debts ₱ 700,000.00 ₱ 1,400,000.00
    Total Current Liabilities ₱ 3,000,000.00 ₱ 3,900,000.00

    Non-Current Liabilities
    Long-Term Debt ₱ 12,000,000.00 ₱ 12,513,500.00
    Notes Payable, long ₱ 200,000.00 ₱ 200,000.00
    Total Non-Current Liabilities ₱ 12,200,000.00 ₱ 12,713,500.00
    TOTAL LIABILITIES ₱ 15,200,000.00 ₱ 16,613,500.00

    STOCKHOLDER'S EQUITY
    Additional Paid in Capital ₱ 300,000.00 ₱ 600,000.00
    Common Stock ₱ 3,340,000.00 ₱ 4,175,000.00
    Preferred Stock ₱ 750,000.00 ₱ 500,000.00
    Total Stockholder's Equity ₱ 4,390,000.00 ₱ 5,275,000.00
    TOTAL LIABILITIES AND SE ₱ 19,590,000.00 ₱ 21,888,500.00
    Eastern Home Corporation
    STATEMENT OF OPERATIONS
    At December 31, 2021 and 2022
    2021 2022
    Net Sales ₱ 3,500,000.00 ₱ 6,675,000.00
    Less: Cost of Goods Sold ₱ 793,800.00 ₱ 1,468,500.00
    Gross Income ₱ 2,706,200.00 ₱ 5,206,500.00
    Less: Operating Profit
    G&A Expenses
    Lease Expense ₱ 420,000.00 ₱ 432,600.00
    Salaries Expense ₱ 568,000.00 ₱ 602,080.00
    Depreciation Expense ₱ 979,000.00 ₱ 979,000.00
    Total G&A ₱ 1,967,000.00 ₱ 2,013,680.00
    Selling Expense
    Advertising Expense ₱ 95,000.00 ₱ 190,000.00
    Marketing Expense ₱ 125,000.00 ₱ 250,000.00
    Total Selling Expense ₱ 220,000.00 ₱ 440,000.00
    Total Operating Expense ₱ 2,187,000.00 ₱ 2,453,680.00
    Operating Income ₱ 519,200.00 ₱ 2,752,820.00
    Less: Interest Expense ₱ 95,000.00 ₱ 190,000.00
    Earning Before Taxes ₱ 424,200.00 ₱ 2,562,820.00
    Less: Taxes (30%) ₱ 127,260.00 ₱ 768,846.00
    Net Profit ₱ 296,940.00 ₱ 1,793,974.00
    Less: Preferred Dividends ₱ 37,500.00 ₱ 37,500.00
    Earnings Available to Common Stockholders ₱ 259,440.00 ₱ 1,756,474.00

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