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Income Statement Company A Percent Company B Percent Revenue

The common size income statements show Company A and B's income statement items as a percentage of total revenue. Company A had higher COGS and operating expenses as a percentage of revenue than Company B. Company B had higher R&D, advertising, and interest expenses than Company A as percentages of revenue. Company B had a higher operating income, net income, and profit margins than Company A. The common size balance sheet shows Wilson Berhad's assets and liabilities/equity as percentages of total assets/liabilities and equity for 2018 and 2019. Most of Wilson's assets were in net plant and equipment both years. Current liabilities decreased as a percentage of total liabilities from 2018 to 2019 while long term debt increased.

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Lina Levvenia Ratanam
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122 views4 pages

Income Statement Company A Percent Company B Percent Revenue

The common size income statements show Company A and B's income statement items as a percentage of total revenue. Company A had higher COGS and operating expenses as a percentage of revenue than Company B. Company B had higher R&D, advertising, and interest expenses than Company A as percentages of revenue. Company B had a higher operating income, net income, and profit margins than Company A. The common size balance sheet shows Wilson Berhad's assets and liabilities/equity as percentages of total assets/liabilities and equity for 2018 and 2019. Most of Wilson's assets were in net plant and equipment both years. Current liabilities decreased as a percentage of total liabilities from 2018 to 2019 while long term debt increased.

Uploaded by

Lina Levvenia Ratanam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Common Size Analysis

Income Statement Company A Percent Company B Percent


Revenue 100,000 100% 550,000 100%
COGS 70,000 70% 390,000 71%
Gross Profit 30,000 30% 160,000 29%

Operating Expenses
Research and Development 10,000 10% 37,000 7%
Advertising 3,000 3% 11,900 2%
General and Administrative 2,000 2% 10,800 2%
Total Operating Expenses 15,000 15% 59,700 11%

Operating Income 15,000 15% 100,300 18%


Interest Expense 2,000 2% 28,000 5%
Income Before Income Taxes 13,000 13% 72,300 13%
Income Tax Expense 3,000 3% 26,000 5%
Net Income 10,000 10% 46,300 8%
WILSON BERHAD
Common Size Balance Sheet of December 31,2018 and

Asset 2018 2019 Liabilities @ Owner's Equity


Current Asset Current Liablities
Cash 120 2.00% 88 1.47% Accounts Payable
Accounts Receivable 223 3.72% 194 3.23% Notes Payable
Inventory 423 7.05% 369 6.15% Total Current Liablities
Total Current Assets 766 12.78% 651 10.85%
Long Term Debt
Total Liabilities
Fixed Assets
NetPlant & Equipment 5230 87.22% 5351 89.15% Owner's Equity
Total Assets 5996 100.00% 6002 100.00% Common stock & Paid in sur
Retained Earnings
Total Equity
Total Liabilities & Owner's E

RATIO 2019
Current Ratio 0.55 times
Quick Ratio 0.24 times
Cash Ratio 0.07 times
Inventory Turnover 6.74 times
Receivable turnover 19.54 times
Days' sales in inventory 54 days
Days' sales in receivable 19 days
Total debt ratio 54% percentage
Time interest earned 1.33 times
Net profit margin 4% percentage
Return on asset 3% percentage
Return on equity 6% percentage
ILSON BERHAD
et of December 31,2018 and 2019

Liabilities @ Owner's Equity 2018 2019


Current Liablities
Accounts Payable 124 2.07% 152 2.53%
Notes Payable 1412 23.55% 1039 17.31%
Total Current Liablities 1536 25.62% 1191 19.84%

Long Term Debt 1804 30.09% 2069 34.47%


Total Liabilities 3340 55.70% 3260 54.32%

Owner's Equity
Common stock & Paid in surplus 300 5.00% 300 5.00%
Retained Earnings 2356 39.29% 2442 40.69%
Total Equity 2656 44.30% 2742 45.68%
Total Liabilities & Owner's Equity 5996 100.00% 6002 100.00%

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