1. Current ratio is 1.8:1 with working capital amounting to P 20,000, how much must the current liabilities be? a. P 45,000 b.P36,000 c.P25,000 d.P20,000
1.
a. P 45,000 b.P36,000 c.P25,000 d.P20,000
2. Selected data from the year end financial statements of Sister Corporation are presented below : ( The difference between average and ending inventories is immaterial).
Current ratio 3 Quick ratio 2.5
Current liabilities P400,000 Inventory turnover 10X
Gross Profit margin is 40%
Sister’s net sales for the year were :
a. P 2.00 million c. P 5.0 million
b. 20 million d. 3.3 million
24 – 27 You are requested to reconstruct accounts of Angel Trading for analysis.
The following data were available to you:
Gross margin for 2019 amounts.……………. P800,000
Beginning balance of Merchandise Inventory.. 280,000
Long-term liabilities consisted of bonds
Payable with interest rate of………. 15%
Total
Gross margin ratio ...........................………… 40%
Debt to equity ratio ........................…………. 0.6 : 1
Times interest is earned …………… ………. 8
Quick ratio ....................................…………… 1.5 :1
Ratio of operating expense to sales...………. 25%
Inventory Turnover ………………………… 5
- The operating income for 2019 was
a. P 487,500 b. P 300,000 c. P 500,000 d. P 250,000
2. The bonds payable was
a. P 487,500 b. P 300,000 c. P 125,000 d. P 250,000
3. Total current liabilities would amount to
a. P375,000 b. P487,500 c. P125,000 d. P250,000
4.Total current assets would amount to
a. P187,500 b. P387,500 c. P467,500 d. P427,500
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