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Submitted By shamariemaria
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ARP 4
Name of the Company Chosen: Manila Electric Company
THE BASICS
Locate the company’s balance sheet. Balance sheet date:
1.
ASSETS = LIABILITIES + EQUITY
This Year (2015) 282.24B = 201.38B + 80.86B
Last Year (2014) 264.06B = 189.58B + 79.48B

2.
This Year (2015):
Current Assets = 282.24B = 1.40152945 or 1.40 Current Liabilities 201.38B

Last Year (2014):
Current Assets = 264.06B = 1.39286845 or 1.39 Current Liabilities 189.58B
Explain what information this ratios provides: The balance sheet of Manila Electric Company indicates the current liabilities and equity of the company. The ratio of Year 2014 is 1.39 and for the Year 2015 1.40, as what you see only 1% increase. As what we have research they already created their 2016 prediction which they come up with the only increasing 1% like the year 2014 and 2015. The company is growing even in minimum percentage every single year, thus, it would be a brilliant idea for investors to invest.
Has the ratio improved or worsened? Explain: The current ratio of Manila Electric Company is not so much improve nor worsen it is only in the stage of neutrality.
This Year (2015):
Total Liabilities = 201.38B = 0.71350624 or 0.71 Total Assets 282.24B
Last Year (2014)
Total Liabilities = 189.58B = 0.71794289 or 0.72 Total Assets 264.06

Explain what information this ratios provides: It only indicates that as of Year 2014 they have 0.72 debt

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