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Power BI BS Analysis

The document outlines an exercise for students to apply statistical and analytical methods to interpret business data, focusing on ABC Tailoring Materials Store's financials. It includes a detailed balance sheet with asset, liability, and equity accounts, as well as comparisons of total assets, liabilities, and equity between 2021 and 2022. Additionally, it discusses liquidity and debt-to-equity ratios, and emphasizes the importance of data visualization and effective communication of findings.

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Cordd Gantalao
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24 views

Power BI BS Analysis

The document outlines an exercise for students to apply statistical and analytical methods to interpret business data, focusing on ABC Tailoring Materials Store's financials. It includes a detailed balance sheet with asset, liability, and equity accounts, as well as comparisons of total assets, liabilities, and equity between 2021 and 2022. Additionally, it discusses liquidity and debt-to-equity ratios, and emphasizes the importance of data visualization and effective communication of findings.

Uploaded by

Cordd Gantalao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FIT Academy

BUSINESS
ANALYTICS
Exercise 4

Upon completing this exercise, students should


be a bl e t o a ppl y st a t i st i c a l a n d a n a l yt i c a l
methods to interpret complex business data,
identify patterns and trends, and make data-
driven decisions. They should also be able to
communicate their findings effectively and
utilize data visualization tools to present their
results.
ABC Tailoring Materials
Store
ABC Tailoring Materials Store is a reputable company specializing in
the sale of high-quality tailoring materials and accessories. They offer a
wide range of products including fabrics, threads, buttons, zippers, and
more. With a commitment to quality, they source their materials from
reliable suppliers and strive to provide visually appealing and durable
options.
The company prides itself on excellent customer service, offering
personalized assistance to help customers find the right materials for
their needs. They foster long-term relationships and create a
welcoming environment for customers of all levels. Additionally, they
stay up to date with industry trends and innovations to meet the
evolving needs of their customers.
Overall, ABC Tailoring Materials Store is a trusted destination for
tailoring material needs.
CHART OF ACCOUNT
The company Maintains the following Balance Sheet Accounts

Balance Sheet
ASSET ACCOUNTS AND BALANCES

Nature of Account
CASH Cash on Hand and 2 BDO Accounts

ACCOUNTS All receivable from Customers, 2021 Payment Term was 45 days while 2022 Payment Term
RECEIVABLE was 30 days

Warehouse capacity is valued at 1,200,000 and company always maintains 70%-80%


INVENTORY
inventory level

OTHER CURRENT
ASSETS
On 2022 the company tried putting some of its funds on short-term marketable securities
Assets
FURNITURE AND
On 2022 the company retired 2 furniture due to unfixable damages
FIXTURE

EQUIPMENT On 2022 the company retired 1 machine due to unfixable damages

LAND The parcel of land on which the office building is situated

The Phase 2 Project of Office Building started on Year 2022 and was also completed on
BUILDING
the same year
LIABILITIES ACCOUNTS AND
BALANCES

Nature of Account
Suppliers extended terms of payment from 30 days to 60 days effective in
ACCOUNTS PAYABLE
Year 2022

BANK LOAN This is a short-term revolving credit facility loan; bank increased it in 2022.
Liabilities
MORTGAGE PAYABLE Long-term payable used by the company to acquire the parcel of land
OWNERS EQUITY

Nature of Account
ABC, CAPITAL No Additional Investment or withdrawals made by owner.

Equity
1. Create a visualization highlighting the following :

A. Total Asset Comparison for Year 2022 and 2021


B. Total Liability Comparison for Year 2022 and
2021
C. Total Equity Comparison for Year 2022 and 2021
D. Liquidity and Debt to Equity Ratio

PURPOSE
E. Working Capital

2. Identify Patterns and Trends on Each


Report (A-E)

3. Conduct a more in-depth Analysis then


draw conclusion for every report
TOTAL ASSET COMPARISON FOR YEAR 2022 AND
2021
ANALYSIS 1

ANALYSIS 3 2021 to 2022 are the following:


Analysis:
• Major movement in asset accounts from
Building – Php1.48 million increase due to the completion of Phase 2 project
Cash – Php700,000
TOTAL LIABILITY COMPARISON FOR
YEAR 2022 AND 2021
For each liability type, there are two bars
representing values for different periods,
likely two consecutive years. Accounts
Payable has the highest values, followed
by Mortgage Payable, while Bank Loan
shows the lowest amounts.

The graph illustrates a decrease in


Accounts Payable and Bank Loan from
INSERT VISUALIZATION FROM POWER BI
one period to the next, while Mortgage
Payable increases.
TOTAL EQUITY COMPARISON FOR
YEAR 2022 AND 2021
ANALYSIS 1
This image displays a horizontal stacked
bar chart comparing the owner's equity for
ABC Capital between 2021 and 2022. The
chart shows two segments: a light blue bar
representing the sum of 2021, which
accounts for roughly 50% of the total, and a
dark blue bar representing the sum of 2022,
which makes up the remaining 50%. INSERT VISUALIZATION FROM POWER BI

The equal distribution suggests that


the owner's equity for ABC Capital
remained relatively stable or
experienced minimal change between
2021 and 2022. This visualization
allows for a quick year-over-year
comparison of the company's equity
position.
LIQUIDITY AND DEBT TO EQUITY
RATIO
1st chart displays the Current Ratio,
where 2021 (blue bar) has a higher value
of about 1.7 compared to 2022 (orange
bar) at around 1.5, indicating a slight
decrease in short-term liquidity.
2nd chart presents the Debt to Equity
Ratio, with 2022 (orange bar) showing a
higher value of approximately 0.7
compared to 2021 (blue bar) at about 0.6, INSERT VISUALIZATION FROM POWER BI
suggesting an increase in the company's
leverage.
The contrasting trends in these ratios - a
decreasing Current Ratio and an
increasing Debt to Equity Ratio - may
indicate that the company took on more
debt or reduced its current assets
between 2021 and 2022, potentially
affecting its financial stability.
WORKING CAPITAL

Current Assets, represented by the blue


bar, have the highest value at around 8
million. Current Liabilities, shown in dark
blue, are the second highest at
approximately 6 million.

Working Capital, depicted in orange, has


the lowest value at about 2 million, which
is consistent with it being the difference INSERT VISUALIZATION FROM POWER BI
between Current Assets and Current
Liabilities.
FIT ACADEMY

THANK YOU
FOR YOUR ATTENTION

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