Financial Management Essay example
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Finance & Accounting
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Table of Contents Garden Place Case-Question 2 3 Vertical Analysis 7 PROFIT AND LOSS STATEMENT 7 Company A 7 Company B 7 BALANCE SHEET 8 Cash flow statements 9 Company A 9 Company B 10 ANALYSIS: 12 Horizontal Analysis 12 Company B 12 Summary: 14 Garden Place Case-Question 2 CASH April 1, common stock 60,000 April 1, truck 12,000 April 1, loan 32,000 April 1, display equipment 6,000 April 1, loan from Campbell bank 10,000 April 1, Rotiller 400 April 1-march 31, cash sales 340,000 April 1, cash register 3,600 April 1, inventories 60,000 Inventories 200,000 Utilities 4800 Payroll 112000 Rent 7200 Telephone 1200 Interest payments 8192 Advertising expense 20,000 Balance 1392 Loan payment 8000 Loan…

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2,000 liabilities and stockholders’ equity liabilities: overdraft $ 1392 Interest payable $ 4032 loan payable $ 24,000 Campbell loan payable $ 8,068 retained earnings $ 6,608 Common Stock $ 60,000 Total $ 100,068 Vertical Analysis PROFIT AND LOSS STATEMENT Company A Company B NET SALES 100% 100% COST OF GOODS SOLD 95.2% 78% GROSS PROFIT 4.8% 22% SELLING, GENERAL AND ADMINISTRATION EXPENSE 2.6% - OPERATING INCOME BEFORE IMPAIRMENT RECOVERY 2.2% - IMPAIRMENT RECOVERY 0 - Intangible asset repairment charges - 0.8% OPERATING INCOME 2.2% 3% OTHER INCOME/(EXPENSE) 0.1% CHANGE IN VALUE OF DERIV ...
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