Directions: Read and analyze the problemthen prepare the recessary rquirements. Veery Beery Company Statement of Financial Position For the Year-ended December 31 Cash Short-term investments Accounts receivable Inventory Other Cunent Assets Total Cunent Assets Equipment Total Assets |Accounts Payable Notes Payable - long term Owner, Capital Total liabilities and equity 2019 P 400,000 5,600,000 1,480,000 1,380,000 8,860,000 10,860,000 6,800,000 P 17,660,000 P 10,240,000 P 6,600,000 2,460,000 8,600,000 P 17,660,000 P 10,240,000 2020 P 180,000 1,800,000 1,060,000 1,640,000 4,680,000 5,040,000 5,200,000 P2,620,000 2,120,000 5,500,000 Veery Beery Company Statement of Comprehensive Income For the Year-ended December 31 2019 P 10,040,000 5,680,000 4,360,000 1,160,000 3,200,000 100,000 P 3,1000,000 2020 Sales Cost of Goods Sold GIoss Profit Operating Expenses Operating Income Interest Expense Net Income P 8,760,000 5,860,000 2,800,000 1,680,000 1,220,000 28,000 P 1,192,000 Requirements: Compute for the following financial ratios. 1. Cumrent ratio 2. Quick ratio 3. Working capital 4. Inventory tumover 5. Days of inventory (use 365 days) 6. Accounts receivable tumover (assume all sales are on credit) 7. Days of receivable (use 365 days) 8. Debt ratio 9. Equity ratio 10. Debt-to-equity ratio 11. Gross profit ratio 12. Net profit ratio 13. Retum on assets 14. Retum on equity
Directions: Read and analyze the problemthen prepare the recessary rquirements. Veery Beery Company Statement of Financial Position For the Year-ended December 31 Cash Short-term investments Accounts receivable Inventory Other Cunent Assets Total Cunent Assets Equipment Total Assets |Accounts Payable Notes Payable - long term Owner, Capital Total liabilities and equity 2019 P 400,000 5,600,000 1,480,000 1,380,000 8,860,000 10,860,000 6,800,000 P 17,660,000 P 10,240,000 P 6,600,000 2,460,000 8,600,000 P 17,660,000 P 10,240,000 2020 P 180,000 1,800,000 1,060,000 1,640,000 4,680,000 5,040,000 5,200,000 P2,620,000 2,120,000 5,500,000 Veery Beery Company Statement of Comprehensive Income For the Year-ended December 31 2019 P 10,040,000 5,680,000 4,360,000 1,160,000 3,200,000 100,000 P 3,1000,000 2020 Sales Cost of Goods Sold GIoss Profit Operating Expenses Operating Income Interest Expense Net Income P 8,760,000 5,860,000 2,800,000 1,680,000 1,220,000 28,000 P 1,192,000 Requirements: Compute for the following financial ratios. 1. Cumrent ratio 2. Quick ratio 3. Working capital 4. Inventory tumover 5. Days of inventory (use 365 days) 6. Accounts receivable tumover (assume all sales are on credit) 7. Days of receivable (use 365 days) 8. Debt ratio 9. Equity ratio 10. Debt-to-equity ratio 11. Gross profit ratio 12. Net profit ratio 13. Retum on assets 14. Retum on 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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 9P: Financial Statement Deficiencies The following is the complete set of financial statements prepared...
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