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FinMan (Common-Size Analysis)

Golden Garments' current assets increased from 2018 to 2019 due to rises in accounts receivable and inventory levels. Plant and equipment declined slightly over this period. Current liabilities grew as accounts payable and bank loans increased, while long-term liabilities decreased significantly. From 2018-2019, sales revenue rose but expenses grew at a slower rate, leading to higher operating income and net income. Retained earnings also increased year-over-year.

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Lorren Graze Ramiro
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186 views4 pages

FinMan (Common-Size Analysis)

Golden Garments' current assets increased from 2018 to 2019 due to rises in accounts receivable and inventory levels. Plant and equipment declined slightly over this period. Current liabilities grew as accounts payable and bank loans increased, while long-term liabilities decreased significantly. From 2018-2019, sales revenue rose but expenses grew at a slower rate, leading to higher operating income and net income. Retained earnings also increased year-over-year.

Uploaded by

Lorren Graze Ramiro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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RAMIRO, LORREN GRAZE I.

BSA-3A (NEW)

Golden Garments, Inc.


Comparative Statement of Financial Position
December 31, 2019 and 2018
Common-size (%)
2019 2018 2019
Assets
Current Assets
Cash 70,392 68,250 10.50%
AR, net 218,549 184,978 32.60%
Inventory 223,242 197,097 33.30%
Prepaid Expenses 67,710 76,542 10.10%
Total Current Assets 579,893 526,867 86.50%

Plant and Equipment


Plant and Equipment, net 90,503 110,987 13.50%
Total Assets 670,396 637,854 100%

Liabilities and Equity


Current Liabilities
Accounts Payable 158,214 139,135 23.60%
Bank loans and other payables 71,672 56,769 10.69%
Current portion of notes payable 30,000 30,000 4.47%
Total Current Liabilities 259,886 225,904 38.77%

Long-term liabilities
Notes Payable (11%) 139,000 169,000 20.73%
Total Liabilities 398,886 394,904 59.50%

Equity
Preferred shares, P8 dividend, P100 par 70,000 70,000 10.44%
Ordinary shares, P1 par value 10,000 10,000 1.49%
Additional paid-in capital 90,000 90,000 13.42%
Total Paid-in capital 170,000 170,000 25.36%
Retained Earnings 101,510 72,950 15.14%
Total Equity 271,510 242,950 40.50%
Total Liabilities and Equity 670,396 637,854 100.00%

Golden Garments, Inc.


Comparative Income Statement
December 31, 2019 and 2018
Common-size (%)
2019 2018 2019
Sales revenue 2,000,000 1,801,802 100.00%
Expenses
Cost of Goods Sold 1,472,000 1,309,910 73.60%
Selling 248,000 230,000 12.40%
Administrative 138,000 142,000 6.90%
Total Expenses 1,858,000 1,681,910 92.90%
Operating income 142,000 119,892 7.10%
Interest expense 27,907 29,270 1.40%
Income before taxes 114,093 90,622 5.70%
Income taxes (35%) 39,933 31,718 2.00%
Net income 74,160 58,904 3.71%
Dividends to preference shareholders 5,600 5,600 0.28%
Net income remaining for ordinary shareholders 68,560 53,304 3.43%
Dividends to ordinary shareholders 40,000 32,000 2.00%
Net income added to retained earnings 28,560 21,304 1.43%
Retained earnings, beginning 72,950 51,646 3.65%
Retained earnings, end 101,510 72,950 5.08%

Over the span of 2 years, current assets increased due to the increase in Accounts Receivable and
Inventory, while Plant and Equipment relatively decreased. Meanwhile, on the liabilities and equity
portion of the balance sheet, current liabilities increased since two components; AP and bank loans
relatively increased, however, long-term liabilities declined in a great percentage which resulted to a
mmon-size (%)
2018

10.70%
29.00%
30.90%
12.00%
82.60%

17.40%
100%

21.81%
8.90%
4.70%
35.42%

26.50%
61.91%

10.97%
1.57%
14.11%
26.65%
11.44%
38.09%
100.00%

mmon-size (%)
2018
100.00%

72.70%
12.76%
7.88%
93.35%
6.65%
1.62%
5.03%
1.76%
3.27%
0.31%
2.96%
1.78%
1.18%
2.87%
4.05%

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