4. Analyze the given vertical analysis and compute for the quick ratio. * In Pesos In Percent 500,000 Cash Short-term Investments 2 Receivables Inventories 600,000 8. 100,000 Prepaid and Other Current Assets Total Current Assets Total Noncurrent Assets 6,000,000 75 Total Assets Current Liabilities Noncurrent Liabilities 40 3,200,000 Equity Total Liabilities and Equity

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...
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4. Analyze the given vertical analysis and compute
for the quick ratio. *
In Pesos In Percent
500,000
Cash
Short-term Investments
2
Receivables
600,000
Inventories
8
Prepaid and Other Current Assets
100,000
Total Current Assets
Total Noncurrent Assets
6,000,000
75
Total Assets
Current Liabilities
?
Noncurrent Liabilities
Equity
Total Liabilities and Equity
40
3,200,000
5. Compute the quantity variance based on the
data on the image.
2018
Sale Price
Cost per Unit
2019
P 520 P 500
330
360
Units Sold
13,000 13,500
6. Assuming that the sales price increased by 5%, what is
the cost price variance? *
2021
P 6,235,500| P 6,000,000
Cost of Sales 5,049,000 5,000,000
2020
Sales
7. How much is the sales price-
volume variance? *
P 861,250
900,000
Gross Profit Last Year
Gross Profit This Year
Change in units sold last year
Units Sold
650
50
P 100
Change in sales price
Change in cost price
75
Excerpt from the four-way analysis:
Sales Quantity Variance - Unfavorable P 245,000
Cost Price Variance - Favorable
45,000
Cost Quantity Variance - Favorable
178,750
Transcribed Image Text:4. Analyze the given vertical analysis and compute for the quick ratio. * In Pesos In Percent 500,000 Cash Short-term Investments 2 Receivables 600,000 Inventories 8 Prepaid and Other Current Assets 100,000 Total Current Assets Total Noncurrent Assets 6,000,000 75 Total Assets Current Liabilities ? Noncurrent Liabilities Equity Total Liabilities and Equity 40 3,200,000 5. Compute the quantity variance based on the data on the image. 2018 Sale Price Cost per Unit 2019 P 520 P 500 330 360 Units Sold 13,000 13,500 6. Assuming that the sales price increased by 5%, what is the cost price variance? * 2021 P 6,235,500| P 6,000,000 Cost of Sales 5,049,000 5,000,000 2020 Sales 7. How much is the sales price- volume variance? * P 861,250 900,000 Gross Profit Last Year Gross Profit This Year Change in units sold last year Units Sold 650 50 P 100 Change in sales price Change in cost price 75 Excerpt from the four-way analysis: Sales Quantity Variance - Unfavorable P 245,000 Cost Price Variance - Favorable 45,000 Cost Quantity Variance - Favorable 178,750
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