2. Selected data from the Company are presented below: Total assets P1,600,000 1,750,000 245,000 1,225,000 1,000,000 294,000 Average assets Net income Net sales Average common stockholders' equity Net cash provided by operating activities Calculate the following profitability ratios. a. Profit margin b. Asset turnover ABA c. Return on assets

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...
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Pls answer number 2 letters a,b,c,d,e with solutions
b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
2. Selected data from the Company are presented below:
Total assets
Average assets
Net income
P1,600,000
1,750,000
245,000
Net sales
Average common stockholders' equity
Net cash provided by operating activities
1,225,000
1,000,000
294,000
Calculate the following profitability ratios.
a. Profit margin
b. Asset turnover
c. Return on assets
d. Return on common stockholders' equity
ABAY
e. Cash return on sales
3. The Corporation's net operating income last year was P103,000; its interest expense was
P17,000; its total stockholders' equity was P1,260,000; and its total liabilities were P380,000.
Compute the following:
a. Times interest eamed.
b. Debt-to-equity ratio.
Transcribed Image Text:b. Current ratio. c. Acid-test ratio. d. Accounts receivable turnover. e. Average collection period. f. Inventory turnover. g. Average sale period. 2. Selected data from the Company are presented below: Total assets Average assets Net income P1,600,000 1,750,000 245,000 Net sales Average common stockholders' equity Net cash provided by operating activities 1,225,000 1,000,000 294,000 Calculate the following profitability ratios. a. Profit margin b. Asset turnover c. Return on assets d. Return on common stockholders' equity ABAY e. Cash return on sales 3. The Corporation's net operating income last year was P103,000; its interest expense was P17,000; its total stockholders' equity was P1,260,000; and its total liabilities were P380,000. Compute the following: a. Times interest eamed. b. Debt-to-equity ratio.
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