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AHR Company has provided the following data: Inventory and prepaid expenses, P35,000; Current ratio, 2.2; Acid-test ratio 1.5. AHR Company's current liabilities were: A. P40,000 B. P50,000 C. P63,000 D. P44,100 OUIS

AHR Company has provided the following data: Inventory and prepaid expenses, P35,000; Current ratio, 2.2; Acid-test ratio 1.5. AHR Company's current liabilities were: A. P40,000 B. P50,000 C. P63,000 D. P44,100 OUIS

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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IENTIA 7. AHR Company has provided the following data: Inventory and prepaid expenses, P35,000; Current ratio, 2.2; Acid-test ratio 1.5. AHR Company's current liabilities were: A. P40,000 В. Р50,000 C. P63,000 QUIS D. P44,100 ESS Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its working capital is P80,000. If ESS Company's debt-to-equity ratio is 0.32, its total long-term assets must equal: 8. А. Р625,000 B. P745,000 C. P825,000 D. P695,000 9. The market price per share of TEE Co. stock at the beginning of the year was P60.00 and at the end of the year was P72.00. Net income for the year was P48,000. Dividends to the preferred stockholders for the year totaled P12,000, and dividends of P2.50 per share were paid on the 6,000 shares of common stock outstanding during the year. The price-earnings ratio at year end was: А. В. 10 С. 11 D. 12 10. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per share. The following data pertains to these shares for the most recent year: Book value, December 31 – P60 per share; Market value, January 1 – P75 per share; Market value, December 31 – P80 per share. common stock was P360,000. The dividend yield ratio for the year was: A. 11.25% The total dividend on В. 12.00% С. 15.00% D. 30.00% 11. As a short-term creditor concerned with a company's ability to meet its financial obligation to you, which one of the following combinations of ratios would you most likely prefer? Current ratio TIE Debt Ratio А. 0.5 0.5 0.33 В. 1.0 1.0 0.50 С. 1.5 1.5 0.50 D. 2.0 1.0 0.67 Е. 2.5 0.5 0.71 SITY
Transcribed Image Text:IENTIA 7. AHR Company has provided the following data: Inventory and prepaid expenses, P35,000; Current ratio, 2.2; Acid-test ratio 1.5. AHR Company's current liabilities were: A. P40,000 В. Р50,000 C. P63,000 QUIS D. P44,100 ESS Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its working capital is P80,000. If ESS Company's debt-to-equity ratio is 0.32, its total long-term assets must equal: 8. А. Р625,000 B. P745,000 C. P825,000 D. P695,000 9. The market price per share of TEE Co. stock at the beginning of the year was P60.00 and at the end of the year was P72.00. Net income for the year was P48,000. Dividends to the preferred stockholders for the year totaled P12,000, and dividends of P2.50 per share were paid on the 6,000 shares of common stock outstanding during the year. The price-earnings ratio at year end was: А. В. 10 С. 11 D. 12 10. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per share. The following data pertains to these shares for the most recent year: Book value, December 31 – P60 per share; Market value, January 1 – P75 per share; Market value, December 31 – P80 per share. common stock was P360,000. The dividend yield ratio for the year was: A. 11.25% The total dividend on В. 12.00% С. 15.00% D. 30.00% 11. As a short-term creditor concerned with a company's ability to meet its financial obligation to you, which one of the following combinations of ratios would you most likely prefer? Current ratio TIE Debt Ratio А. 0.5 0.5 0.33 В. 1.0 1.0 0.50 С. 1.5 1.5 0.50 D. 2.0 1.0 0.67 Е. 2.5 0.5 0.71 SITY
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