Answer to Question #167414 in Accounting for Jichang

Question

Problem 2.    

A restaurant owner expressed concern regarding the changes in cash, credit card receivables, food and beverage inventories accounts in the months of July and August of the current year. He wants you to show him the peso changes and the percentage of change for each of these accounts using comparative analysis.

 

July

 

August

Cash

P  8,880

 

P  7,104

Credit card receivables

1,240

 

1,984

Food inventories

4,480

 

6,272

Beverage inventories

2,220

 

1,887

Total current assets

P 16,820

 

P 17,247

 

 

Problem 3.    

After being shown the comparative analysis (Problem 2), the owner now wants to see a common-size (vertical) analysis. Using the same data from Problem 2, prepare a common-size analysis for July and August.

 

 

Answer 1

Solution: