Express all line items of statement of comprehensive income

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Problem - BSA Company completed its two-year operation and provided the comparative income statement as follows:

BSA Company Comparative Statement of Comprehensive Income For the Years Ended December 31, 2019 and 2020

 

2019

2020

Net Sales

P500,000

P800,000

Cost of goods sold

300,000

464,000

Gross profit

P200,000

P336,000

Operating expenses

(80,000)

(164,000)

Interest Expense

(20,000)

(20,000)

Income before taxes

P100,000

P152,000

Income taxes (30%)

(30,000)

(45,600)

Net income

P70,000

P106,400

 

BSA Company Statement of Financial Position As of December 31, 2020

Current Assets

P100,000

Non-current assets

400,000

Total Assets

P500,000

Current Liabilities

P80,000

Non-current liabilities

220,000

Total Liabilities

P300,000

BSA, Capital

200,000

Total liabilities and owner's equity

P500,000

Additional information: During 2020, the owner withdrew P30,000.

Required -

1. Using 2019 as the base year, express all line items of the statement of comprehensive income as a percentage of the corresponding base year item.

2. Express each line item of the two income statements as a percentage of net sales.

3. Comment on the trends revealed by the computation in requirements (1) and (2).

4. Compute for the following ratios for 2020:

a. Current ratio

b. Debt ratio

c. Return on total assets

Reference no: EM132836101

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