Fundamentals of Accounting, Business, and

Management 2

Group 3:

Janen Sagne
Dorena Villaabrille
Jasmin Cosgafa
Adelle Santoyas
Amor Arcala
 WHAT IS
FINANCIAL
STATEMENT
ANALYSIS?
 FINANCIAL STATEMENT ANALYSIS

• It involves comprehensive examination of a company’s

financial statements for decision-making purposes.
 TREND ANALYSIS

• It analyzes not only two years in comparison but covers

three, four or five years’ financial statements.
STEPS IN PERFORMING A TREND ANALYSIS
1. Prepare a comparative financial statement for three, four, or five
consecutive years.

2. Choose a base year.

3. Calculate the trend percentage for each item by dividing the

amount of each item by the base year. The base is automatically
100%.
 TREND ANALYSIS FORMULA

Trend % = Chosen Year x 100%

Base Year
 Fidas Merchandising
Statement of Financial Position
As of December 31
(In Millions)
As s e ts 2 01 7 % 2 01 6 % 2015 %

CURRE NT AS S E TS

Ca sh 2 22 . 9 3 30 . 2 290.0

A cco u n t s
2 82 . 5 1 72 . 1 156.0
re ce iva b le (n e t )

In ve n t o ry 1 46 . 3 9 2. 8 90.9

P re p a id E xp e n se s 7 4. 1 7 0. 3 60.7

Tota l Cur re nt
7 25 . 8 6 65 . 4 597.6
As s e ts

P ro p e rty, P la n t ,
1 ,8 6 6. 4 5 56 . 2 625.5
a n d E q u ip me n t (n e t )

Tota l As s e ts 1 ,5 9 2. 2 1 ,2 2 1. 6 1 ,2 2 3 , 1
 Fidas Merchandising
Statement of Financial Position
As of December 31
(In Millions)
As s e ts 2 01 7 % 2 01 6 % 2015 %

CURRE NT AS S E TS

Ca sh 2 22 . 9 7 6. 9 3 30 . 2 11 3 .9 290.0 100

A cco u n t s
2 82 . 5 1 81 . 1 1 72 . 1 11 0 .3 156.0 100
re ce iva b le (n e t )

In ve n t o ry 1 46 . 3 1 60 . 9 9 2. 8 102.1 90.9 100

P re p a id E xp e n se s 7 4. 1 1 22 . 1 7 0. 3 11 5 .8 60.7 100

Tota l Cur re nt
7 25 . 8 1 21 . 6 65 . 4 111 .3 597.6 100
As s e ts

P ro p e rty, P la n t ,
1 ,8 6 6. 4 2 98 . 30 5 56 . 2 88.9 625.5 100
a n d E q u ip me n t (n e t )

Tota l As s e ts 1 ,5 9 2. 2 2 11 .9 1 ,2 2 1. 6 99.9 1 ,2 2 3 , 1 100

 Fidas Merchandising
Income statement
For year ended December 31
(In Millions)

2017 2016 2015

Net Sales 2,213.3 1,738.7 1,543.2

Cost of Good sold 1,032.1 831.8 700.1

Gross profit 1,181.2 906.9 843.1

Selling and
Administrative 889.2 659.5 555.5
Expenses

Operating Income 292.0 247.4 287.6

Interest Expense 90.9 30.5 25.0

Income before income

201.1 216.9 262.6
taxes

I n c o m e Ta x
60.3 65.0 77.4
expense(30%)

Net Income 140.8 151.9 185.2

 Fidas Merchandising
Income statement
For year ended December 31
(In Millions)

2017 % 2016 % 2015 %

Net Sales 2,213.3 143.4 1,738.7 11 2 . 7 1,543.2 100

Cost of Good sold 1,032.1 147.4 831.8 11 8 . 8 700.1 100

Gross profit 1,181.2 140.1 906.9 107.6 843.1 100

Selling and
Administrative 889.2 160.0 659.5 11 8 . 7 555.5 100
Expenses

Operating Income 292.0 101.5 247.4 86.0 287.6 100

Interest Expense 90.9 363.6 30.5 122.0 25.0 100

Income before income

201.1 76.6 216.9 82.6 262.6 100
taxes

I n c o m e Ta x
60.3 77.9 65.0 84.0 77.4 100
expense(30%)

Net Income 140.8 76.0 151.9 82.0 185.2 100

 Get 1 whole sheet of
paper
ang naminaw maka answer.
 On the Date Trading
Statement of Financial Position
As of December 31
As s e ts 2 01 7 % 2 01 6 % 2015 %

CURRE NT AS SE TS

Ca sh 1 58 , 00 0 8 4, 0 0 0 70,000

S h o rt-t e rm In vestme n ts 1 30 , 00 0 1 92 , 0 0 0 200,000

A cco u n t s Re ce iva b le, n e t 2 40 , 00 0 2 00 , 0 0 0 180,000

Me rch a n d ise I nve nt o ry 5 00 . 0 5 30 , 0 0 0 550,000

Tota l Cur re nt As s ets 1 ,0 2 8, 00 0 1 ,0 0 6 , 0 0 0 1 ,0 0 0 , 0 0 0

P ro p e rty, P la nt , an d
2 ,0 3 8, 00 0 2 ,3 5 0 , 0 0 0 2 ,3 6 0 , 0 0 0
E q u ip me n t(n e t)

Tota l As se ts 3 ,3 6 8, 00 0 3 ,3 5 6 , 0 0 0 3 ,3 6 0 , 0 0 0
 On the Date Trading
Statement of Financial Position
As of December 31

Lia bi li tie s a nd
2 01 7 % 2 01 6 % 2015 %
O w ne r ’s E qui ty

Cu rre n t L ia b ilit ie s 5 30 , 00 0 5 84 , 00 0 600,000

No n -cu rre n t
8 00 , 00 0 8 40 , 00 0 860,000
L ia b ilitie s

Tota l Li bi li tie s 1 ,3 3 0, 00 0 1 ,4 2 4, 00 0 1 ,4 6 0 , 0 0 0

1 ,9 0 0 , 0 0 0
O wn e r ’s E q u ity 2 ,0 3 8, 00 0 1 ,9 3 2, 00 0

Tota l Li bi li tie s
a nd O w ne r ’s 3 ,3 6 8, 00 0 3 ,3 5 6, 00 0 3 ,3 6 0 , 0 0 0
E qui ty
 On the Dot Trading
Income Statement
For the Years Ended December 31
(in millions)
2017 2016 2015

Net Sales 4,972 4,150 3,600

Cost of Good sold 3,046 2,444 2,200

Gross profit 1,926 1,706 1,400

Selling and
Administrative 1,556 1,500 1,200
Expenses

Operating Income 370 206 200.0

Interest Expense 88 92 84.0

Income before income

282 11 4 11 6 . 0
taxes

I n c o m e Ta x
94 42 37.2
expense(30%)