II. Direction: Solve the following problems using horizontal and vertical analysis. Write the answer on the second column. Determine the technique used in solving the problem whether horizontal, or vertical or mixed. Write the answer on the third column. Show solutions in a separate sheet of paper. What technique is used Problem Answer 1. A company has a total liabilities of P65,000 and owner's equity of P35,000. What is the percentage of equity to total assets? 2. The total owner's equity for 2018 is P175,000 and for 2019 is P235,500, what is the percentage of increase or decrease of owner's equity? 3. If the current assets are P75,000 and the total assets are P300,000, what is the percentage of noncurrent assets? 4. Long-term liabilities are P150,000 which is equivalent to 50% of the total liabilities, the owners equity is 40% of the total assets, how much would be the total assets?
II. Direction: Solve the following problems using horizontal and vertical analysis. Write the answer on the second column. Determine the technique used in solving the problem whether horizontal, or vertical or mixed. Write the answer on the third column. Show solutions in a separate sheet of paper. What technique is used Problem Answer 1. A company has a total liabilities of P65,000 and owner's equity of P35,000. What is the percentage of equity to total assets? 2. The total owner's equity for 2018 is P175,000 and for 2019 is P235,500, what is the percentage of increase or decrease of owner's equity? 3. If the current assets are P75,000 and the total assets are P300,000, what is the percentage of noncurrent assets? 4. Long-term liabilities are P150,000 which is equivalent to 50% of the total liabilities, the owners equity is 40% of the total assets, how much would be the total assets?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.1KTQ
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