Total Assets 670,396 637,854 32,542 5.1% Liabilites and Equity Current liabilites Accounts payable Bank loans and other payables Current portion of notes payable Total current liabilites Long term liablites Notes payable (11%) Total liabilites Equity: Preference shares, P8 dividend, P100 par Ordinary shares, P1 par value Additional paid-in capital Total paid in capital Retained earnings Total equity Total liablites and equity 19079 14903 13.7% 26.3% 158214 71672 30000 259886 139135 56769 30000 225904 0.0% 33982 15.0% 139000 398886 169000 394904 -30000 3982 -17.8% 1.0% 70000 10000 90000 170000 101510 271510 670396 70000 10000 90000 170000 72950 242950 637854 0.0% 0.0% 0.0% 0.0% 39.2% 28560 28560 11.8% 32542 5.1% Music Lover, Inc. Comparative Income Statement December 31,2019 and 2018 2019 2018 Amount Percent 11.0% Sales revenue Expenses Cost of goods sold Selling Administrative Total expenses Operating income Interest expense 2,000,000 1,801,802 198,198 12.4% 7.8% 1,472,000 1,309,910 162,090 248,000 230,000 18,000 (4,000) -2.8% 138,000 1,858,000 142,000 27,907 114,093 142,000 1,681,910 10.5% 176,090 22,108 (1,363) 23,471 8,215 18.4% -4.7% 25.9% 25.9% 25.9% 119,892 29,270 90,622 Income before taxes Income taxes (35%) Net income 39,933 31,718 74,160 58,904 15,256 Dividends to preference shareholders Net income remaining for ordinary shareholders Dividends to ordinary shareholders Net income added to retained earnings Retained earnings beginning of year Retained earnings end of year 5,600 5,600 0.0% 349.4% 400.0% 293.6% 242.4% 255.4% 68,560 53,304 32,000 21,304 51,646 72,950 15,256 8,000 7,256 40,000 28,560 72,950 101,510 21,304 28,560
Total Assets 670,396 637,854 32,542 5.1% Liabilites and Equity Current liabilites Accounts payable Bank loans and other payables Current portion of notes payable Total current liabilites Long term liablites Notes payable (11%) Total liabilites Equity: Preference shares, P8 dividend, P100 par Ordinary shares, P1 par value Additional paid-in capital Total paid in capital Retained earnings Total equity Total liablites and equity 19079 14903 13.7% 26.3% 158214 71672 30000 259886 139135 56769 30000 225904 0.0% 33982 15.0% 139000 398886 169000 394904 -30000 3982 -17.8% 1.0% 70000 10000 90000 170000 101510 271510 670396 70000 10000 90000 170000 72950 242950 637854 0.0% 0.0% 0.0% 0.0% 39.2% 28560 28560 11.8% 32542 5.1% Music Lover, Inc. Comparative Income Statement December 31,2019 and 2018 2019 2018 Amount Percent 11.0% Sales revenue Expenses Cost of goods sold Selling Administrative Total expenses Operating income Interest expense 2,000,000 1,801,802 198,198 12.4% 7.8% 1,472,000 1,309,910 162,090 248,000 230,000 18,000 (4,000) -2.8% 138,000 1,858,000 142,000 27,907 114,093 142,000 1,681,910 10.5% 176,090 22,108 (1,363) 23,471 8,215 18.4% -4.7% 25.9% 25.9% 25.9% 119,892 29,270 90,622 Income before taxes Income taxes (35%) Net income 39,933 31,718 74,160 58,904 15,256 Dividends to preference shareholders Net income remaining for ordinary shareholders Dividends to ordinary shareholders Net income added to retained earnings Retained earnings beginning of year Retained earnings end of year 5,600 5,600 0.0% 349.4% 400.0% 293.6% 242.4% 255.4% 68,560 53,304 32,000 21,304 51,646 72,950 15,256 8,000 7,256 40,000 28,560 72,950 101,510 21,304 28,560
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Evaluate the company's financial position and results of operation using the comparative statement analysis:
i. Short-term solvency analysis
ii. Long-term financial position analysis
iii. Operating efficiency and profitability analysis
Transcribed Image Text:Comparative Statement of Financial Position
December 31,2019 and 2018
2019
2018
Amount
Percent
Assets
Current assets:
Cash
70,392
68,250
2,142
3.1%
Accounts receivable (net)
Inventory
Prepaid expenses
Total current assets
Noncurrent assets
Plant, property and equipment (net)
Total Assets
218,549
184,978
33,571
18.1%
223,242
197,097
26,145
13.3%
67,710
76,542
-8,832
-11.5%
579,893
526,867
53,026
10.1%
90,503
110,987
(20,484)
-18.5%
670,396
637,854
32,542
5.1%
Liabilites and Equity
Current liabilites
Accounts payable
Bank loans and other payables
Current portion of notes payable
Total current liabilites
158214
139135
19079
13.7%
71672
56769
14903
26.3%
30000
30000
0.0%
259886
225904
33982
15.0%
Long term liablites
Notes payable (11%)
Total liabilites
139000
398886
169000
394904
-30000
-17.8%
3982
1.0%
Equity:
Preference shares, P8 dividend, P100 par
Ordinary shares, P1 par value
Additional paid-in capital
Total paid in capital
Retained earnings
Total equity
70000
70000
0.0%
10000
10000
0.0%
90000
90000
0.0%
170000
72950
170000
0.0%
101510
28560
39.2%
271510
242950
28560
11.8%
Total liablites and equity
670396
637854
32542
5.1%
Music Lover, Inc.
Comparative Income Statement
December 31,2019 and 2018
2019
2018
Amount
Percent
Sales revenue
2,000,000
1,801,802
198,198
11.0%
Expenses
Cost of goods sold
Selling
1,472,000
1,309,910
12.4%
162,090
18,000
248,000
230,000
7.8%
Administrative
138,000
142,000
(4,000)
-2.8%
Total expenses
Operating income
Interest expense
Income before taxes
1,858,000
1,681,910
176,090
10.5%
142,000
119,892
22,108
18.4%
27,907
29,270
(1,363)
-4.7%
114,093
90,622
23,471
25.9%
Income taxes (35%)
31,718
58,904
39,933
8,215
25.9%
Net income
74,160
15,256
25.9%
Dividends to preference shareholders
5,600
5,600
0.0%
Net income remaining for ordinary shareholders
Dividends to ordinary shareholders
Net income added to retained earnings
Retained earnings beginning of year
Retained earnings end of year
68,560
53,304
15,256
349.4%
40,000
32,000
8,000
400.0%
28,560
21,304
7,256
293.6%
72,950
51,646
21,304
242.4%
101,510
72,950
28,560
255.4%
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