Part I. Perform a vertical analysis in Just Stuff's Income Statement and Balance Sheet for the year 2020 and make conclusions based on your computations.Part II. Perform a horizontal analysis in Just Stuff's Income Statement and Balance Sheet and make conclusions based on your computation. INCOME STATEMENTJUST STUFF, INC.FOR THE YEARS ENDED DEC. 31 2019 & 202020192020Sales RevenueP2,250,000P2.200,000Less: Cost of Goods Sold1800.0001800.000Gross ProfitsLess: OperatingЕxpensesOperating ProfitsLess: Interest ExpenseNet Profits Before TaxesP450,000300.000P400,000280.000P 120,00015.000P 105,00031.500P150,00015.000P135,000Less: Taxes (30%)Net Profits After Taxes40.500P94.500P73,500BALANCE SHEETJUST STUFF, INC.AS OF DEC. 31 2019 & 202020192020AssetsCashP 95,000P100,000Accounts recelvable237,000202,000Inventories243.000P 575,000253.000P 505,000Total current assetsGross fixed assetsLess: AccumulateddepreciationNet fixed assetsTotal assetsLiabilities and stockholders' equity500,000500,00075.00025.000P425.000P1,000,000P425.000P 930,000Current liabilitiesP89,000Accounts payableNotes payableAccruals$109,000169,000154.00087.000P 345,000103.500$366,500150.000P516,500Total current liabilitiesLong term debtTotal liabilitiesStockholders' equityCommon stock, at P5 parRetained earningsTotal stockholdersequityTotal liabilities andstockholders' equity150.000P 495,000285,000300,000220.000P 505.000113.500P413.500PL.000.000P930,000Additional information:In 2020, dividends of P180,000 were declared.• Market value of the share were P12 and P10 for the years 2019 and 2020, respectively.• The firm operates on 360 days per year.*NOTE: Year 2020 Inventories in the Balance Sheet of Just Stuff, Inc. is P203,000.

1. Vertical Analysis - The Statement of Financial Position - The statement of financial position is…

INCOME STATEMENT JUST STUFF, INC. FOR THE YEARS ENDED DEC. 31 2019 & 2020 2019 2020 Sales Revenue P2250.000 P2.200,000 Less: Cost of Goods Sold L800.000 Gross Profits Less: Operating Expenses Operating Profits Less: Interest Expense Net Profits Before Taxes Less: Tases (30%) Net Profits After Taxes P450,000 P400,000 300.000 280.000 P150,000 15.000 P135.000 40.500 P94500 P120,000 15.000 P105,000 31500 P73500 BALANCE SHEET JUST STUFF, INc AS OF DEC. 31 2019 A 2020 2019 2020 Assets Cash Accounts recelvable P95.000 P100.000 237,000 202.000 Inventories 243.000 253.000 Total current assets Gross fixed assets Less Accumulated depreciation Net fied assets Total assets Liabilities and stockholders' equity Current labilities Accounts payable Notes payable Accruals PS75.000 PSOS.000 500.000 500.000 25.000 75.000 P425.000 PL000.000 P425.000 P930,000 P9.000 $109.000 169.000 154.000 87.000 P345.000 103.500 $366.500 Total current liabilities Long term debe To 150.000 P495.000 150.000 PS16.500 bilities Stockholders equity Common stock, at P5 par Retained earnings 285.000 300.000 111.500 PA13500 220.000 Total stockholders equity Total labilites and PS05.000 PL000.000 P930.000 stockholders equity

INCOME STATEMENT JUST STUFF, INC. FOR THE YEARS ENDED DEC. 31 2019 & 2020 2019 2020 Sales Revenue P2250.000 P2.200,000 Less: Cost of Goods Sold L800.000 Gross Profits Less: Operating Expenses Operating Profits Less: Interest Expense Net Profits Before Taxes Less: Tases (30%) Net Profits After Taxes P450,000 P400,000 300.000 280.000 P150,000 15.000 P135.000 40.500 P94500 P120,000 15.000 P105,000 31500 P73500 BALANCE SHEET JUST STUFF, INc AS OF DEC. 31 2019 A 2020 2019 2020 Assets Cash Accounts recelvable P95.000 P100.000 237,000 202.000 Inventories 243.000 253.000 Total current assets Gross fixed assets Less Accumulated depreciation Net fied assets Total assets Liabilities and stockholders' equity Current labilities Accounts payable Notes payable Accruals PS75.000 PSOS.000 500.000 500.000 25.000 75.000 P425.000 PL000.000 P425.000 P930,000 P9.000 $109.000 169.000 154.000 87.000 P345.000 103.500 $366.500 Total current liabilities Long term debe To 150.000 P495.000 150.000 PS16.500 bilities Stockholders equity Common stock, at P5 par Retained earnings 285.000 300.000 111.500 PA13500 220.000 Total stockholders equity Total labilites and PS05.000 PL000.000 P930.000 stockholders equity

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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