Name: _______________________________________________

Course / Year / Section : ________________________________

Part I: Identify whether the following statements are true or false. Write T if true and F if false
before each number.

1. The treasurer takes care of external finance functions.

2. All business has the chance of incurring financial loss.
3. In allocation of funds, investments that are profitable are given priority.
4. Investor relations are functions of a controller.
5. To become a good financial manager, knowledge of economics is unnecessary.
6. Owner’s equity is considered as the margin of safety to creditors.
7. The two sources of funds are borrowed capital and cost of capital.
8. In every investment proposal, benefits must exceed costs.
9. Plant, Property & Equipment is an example of current asset.
10. On invested funds, the cost of capital are financing charges.

Part II: Using horizontal analysis, complete the given data below. Write the answer according
to the given number.

Crystal Hotel
Comparative Income Statement
For the year ended December 31, 2023 & 2022
Pesos Percentage
2023 2022
Change Change

Net Sales 1,500,000.00 1,200,000.00 1? 25%

Cost of Goods Sold 2? 850,000.00 3? -12%
Gross Profit 750,000.00 350,000.00 400,000.00 4?

Less : Operating Expenses

Selling Expense 100,000.00 5? 20,000.00 6?
Administrative Expense 50,000.00 50,000.00 0.00 0%
Total Operating Expenses 150,000.00 130,000.00 20,000.00 15%

Income before interest and taxes 600,000.00 7? 380,000.00 173%

Less: Interest Expense 40,000.00 50,000.00 8? 9?
Income before Taxes 560,000.00 170,000.00 390,000.00 229%
Income tax 140,000.00 10? 97,500.00 229%
Net Income 420,000.00 127,500.00 292,500.00 229%
 Crystal Hotel
Comparative Balance Sheet
December 31, 2023 & December 31, 2022

2023 2022
Assets
Current Assets
Cash and Cash Equivalents 105,000.00 100,000.00 5,000.00 5%
Trade and Other Receivables 300,000.00 11? 12? 50%
Inventory 300,000.00 200,000.00 100,000.00 50%
Prepaid Expenses 100,000.00 100,000.00 0.00 0%
Total Current Assets 805,000.00 600,000.00 205,000.00 34%
Non-Current Assets
Property, Plant & Equipment 13? 160,000.00 -30,000.00 14?
Total Non-Current Assets 130,000.00 160,000.00 -30,000.00 -19%
Total Assets 935,000.00 760,000.00 15? 23%

Liabilities and Owners’ Equity

Current Liabilities
Trade & Other Payables 230,000.00 200,000.00 30,000.00 15%
Unearned Revenues 100,000.00 16? 17? 25%
Notes Payable-Current 40,000.00 40,000.00 0.00 0%
Total Current Liabilities 370,000.00 320,000.00 50,000.00 16%
Non-Current Liabilities
Notes Payable-Non-Current 200,000.00 250,000.00 18? -20%
Total Liabilities 570,000.00 570,000.00 0.00 0%
Owners’ Equity
Crystal Hotel, Capital 365,000.00 190,000.00 19? 20?
Total Liabilities and Owners’ Equity 935,000.00 760,000.00 175,000.00 23%

1._________________________ 11.___________________________
2._________________________ 12.___________________________
3._________________________ 13.___________________________
4._________________________ 14.___________________________
5._________________________ 15.___________________________
6._________________________ 16.___________________________
7._________________________ 17.___________________________
8._________________________ 18.___________________________
9._________________________ 19.___________________________
10.________________________ 20.___________________________
Part III: Using vertical analysis, complete the given data below. Write the answer according
to the given number

Precision Company
Comparative Income Statement
For the year ended December 31, 2023 & 2022

2023 2022 2023 2022

Net Sales 2,486,000.00 2,075,000.00 100% 100%

Cost of Goods Sold 1,523,000.00 1? 61% 59%
Gross Profit 2? 853,000.00 39% 41%

Less : Operating Expenses

Advertising Expense 145,000.00 100,000.00 3? 5%
Sales Salaries Expense 240,000.00 280,000.00 10% 4?
Office Salaries Expense 165,000.00 5? 6? 10%
Insurance Expense 100,000.00 45,000.00 4% 2%
Supplies Expense 7? 35,000.00 1% 8?
Depreciation Expense 85,000.00 75,000.00 3% 4%
Miscellaneous Expense 61,000.00 9? 2% 3%
Total Operating Expenses 822,000.00 796,000.00 33% 38%
Income before taxes 141,000.00 57,000.00 6% 3%
Income tax 47,000.00 19,000.00 2% 1%
Net Income 94,000.00 38,000.00 10? 2%

Precision Company
Comparative Balance Sheet
December 31, 2023 & December 31, 2022

2023 2022 2023 2022

Assets
Current Assets :
Cash 79,000.00 42,000.00 4.69% 2.50%
Short-term investments 65,000.00 96,000.00 3.86% 5.72%
Accounts receivable 120,000.00 11? 12? 5.96%
Merchandise Inventory 250,000.00 265,000.00 14.85% 15.79%
Total Current Assets 514,000.00 503,000.00 30.52% 29.98%

Fixed Assets :
 Store Equipment 400,000.00 350,000.00 23.75% 20.86%
Office Equipment 13? 50,000.00 2.67% 14?
Buildings 625,000.00 675,000.00 37.11% 40.23%
Land 100,000.00 100,000.00 15? 5.96%
Total Fixed Assets 1,170,000.00 1,175,000.00 69.48% 70.02%

Total Assets 1,684,000.00 1,678,000.00 100.00% 100.00%

Liabilities and Stockholders' Equity

Current Liabilities
Accounts Payable 164,000.00 16? 9.74% 17?
Short-term Notes Payable 75,000.00 90,000.00 4.45% 5.36%
Taxes Payable 26,000.00 12,000.00 1.54% 0.72%
Total Current Liabilities 265,000.00 292,000.00 15.74% 17.40%
Long-term Liabilities
Notes Payable 18? 420,000.00 23.75% 19?

Total Liabilities 665,000.00 712,000.00 39.49% 42.43%

Stockholders' Equity
Common Stock P 5 par value 475,000.00 475,000.00 28.21% 28.31%
Preferred Stock 100,000.00 100,000.00 20? 5.96%
Retained Earnings 444,000.00 391,000.00 26.37% 23.30%
Total Stockholders' Equity 1,019,000.00 966,000.00 60.51% 57.57%

Total Liabilities & Stockholders'

1,684,000.00 1,678,000.00 100.00% 100.00%
Equity

1._________________________ 11.___________________________
2._________________________ 12.___________________________
3._________________________ 13.___________________________
4._________________________ 14.___________________________
5._________________________ 15.___________________________
6._________________________ 16.___________________________
7._________________________ 17.___________________________
8._________________________ 18.___________________________
9._________________________ 19.___________________________
10.________________________ 20.___________________________