Given the following data for ABC company for the year ended 2018: inventory turnover ratio = 5.3125x average inventory = P160,000.00. If the gross profit is Php 500,000.00 and the fixed asset turnover is 1.25x, what is the amount of PPE? P800,000 B P1,080,000 P625,000 P850,000

Given the following data for ABC company for the year ended 2018: inventory turnover ratio = 5.3125x average inventory = P160,000.00. If the gross profit is Php 500,000.00 and the fixed asset turnover is 1.25x, what is the amount of PPE? P800,000 B P1,080,000 P625,000 P850,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 16PA: Use the following information relating to Clover Company to calculate the inventory turnover ratio,...

See similar textbooks

Related questions

Q: On February 22, Stewart Corporation acquired 7,500 shares of the 265,000 outstanding shares of Edwar...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: P-2. One of your first assignments at the world famous Pez Candy Company located in Milford, Connect...

A: Here, in this case, we are given 2 projects with different cash flows and different life. We will co...

Q: Question Two: Read the following transactions related to Inter Company: Inter Company was founded in...

A: The T-accounts are prepared by posting the transactions to their specific account and further find t...

Q: Show a detailed, step by step process for the following question below: “Apollo is a local hospita...

A: Working:

Q: usiness interest. Rosa mmater

A: Working notes :- In partnership :- ...

Q: Camp Rainbow offers overnight summer camp programs for children ages 10–14 every summer during June ...

A: Variable operating cost per child=(Highest activity cost-Lowest activity cost)(Highest activity unit...

Q: Question 1: Which of the following accounts is(are) understated by P 50,000 at th end of year 2022 a...

A: During examination of the financial statements of France Company for the year ended December 31, 202...

Q: 1. How much is the additional allowable training expenses, if any? 2. How much is the taxable net in...

A: Taxable income of the company is the income which the company has earned during the year from the op...

Q: Choi Suganaki sold the following assets at a garage sale in the current year: • Used clothing (a for...

A: 1) Used clothes Sale proceeds. $750 less: purchases price. ($1200) ...

Q: Suppose you are a bank loan manager. Your target EAR is 5%. Now, you are required to offer bank loan...

A: Calculation of monthly instalment for 3 years Customer want to Borrow- $ 1,000,000 EAR - 5 % Month ...

Q: for for 20 táxáblé yéàr of ML partnership corporation) including partner's own income citizens) are ...

A: The sharing of profit and loss in accordance with the profit and loss sharing ratio.it completely de...

Q: Ukraine Company, your client, failed to record accrued salaries expense of P 50,000 as of December 3...

A: Accounting errors are mainly inadvertent errors that occur at the time of recording journal entries....

Q: Which of the following situation in which the quality of the company’s pay-out to shareholders may d...

A: a. Decrease in cash position

Q: omith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the ...

A: Calculation of Ending Inventory In cost to retail method there are different method which are adopt...

Q: ABC Company failed to record accrued salaries expense of P50,000 as of December 31, 2022. 1. Which ...

A: The accrued expenses are the expenses due for payment but are not paid yet.

Q: The Red, Book Inc. sold 1,300 finance textbooks for P650 each to Brilliant University in 20X5. These...

A: Income statement is prepared by the business organizations so as to know how much amount of Gross pr...

Q: Jones Company had net income of $10,000 for the year. Beginning total assets were $150,000 and endin...

A: Lets understand the basics. Return on asset is a ratio which indicates that how much profitability i...

Q: On June 8, Williams Company issued an $92,400, 11%, 120-day note payable to Brown Industries. Assumi...

A: Solution: Maturity value of note is computed as principal amount of note plus interest amount till m...

Q: Hi there, I want help to solve this questions you are the CEO of Nelson Corporation, and the curre...

A: Pollack Enterprises want to takeover the business of Nelson Corporation by paying consideration of $...

Q: LO 2 6.15 Bond Prices versus Yields What is the relationship between the price of a bond and its YTM...

A: Yield to maturity (YTM) is that the total return anticipated on a bond if the bond is held until it ...

Q: Directions: Complete the table below. The first item has been uoe Increased by Decreased by List of ...

A: The balance sheet represents the financial position of the business with assets and liabilities on t...

Q: Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the...

A: GIVEN Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that d...

Q: A one-year insurance policy was purchased on June 1 for $1,680. Journalize the adjusting entry requi...

A: Introduction:- At the time of purchase the insurance policy, debit the Prepaid Expense account to sh...

Q: 12. Novelli's Nursery has developed the following data in order to calculate the lower of cost or ...

A: Given that, Cost to sell = 10% of the selling price. So the NRV = sales - cost to sell

Q: Marsh microns produces an product and provides the following information for the year 2019: Margin o...

A: The Margin of safety refers to the excess of actual sales level over the Break even sales. It repres...

Q: Required: • Posting • Trial Balance • Statement of Financial Position

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want ...

Q: Q1 A company is considering an investment proposal which has in investment outlay of RO 50,000. The ...

A: ANSWER ARR = 14.8 % CALCULATION OF ACCOUNTING RATE OF RETURN ( ARR ) INITIAL INVESTMENT = RO 50000 P...

Q: Rooney Company incurred $280,000 of research and development cost in its laboratory to develop a pat...

A: As per Standards on accounting, Research and development expenditures must be recognized as expense...

Q: According to its original plan, Finch Consulting Services Company plans to charge its customers for ...

A: Revenue is Flexible budget hours × budget hours × service charge - $128 per hour Variable costs is ...

Q: Prepare a budgeted income statement using the information shown. Sales (units) Sales price per unit ...

A: A budgeted income statement is a financial report that details the expected profit, revenue, and cos...

Q: Sheridan Inc. owns these assets at the statement of financial position date: Cash in bank (savings a...

A: Cash and cash equivalents refers to most liquid current assets of the business and also includes sho...

Q: Fig Tree Bank has provided the following financial statements for the year ended 2020. Consolidated...

A: To analyze the bank performance various financial ratio and bank specific ratio. The following are t...

Q: On September 15, YG Corporation splits up its share 2-for-5 when the market value was USD65 per shar...

A: Concept of stock split up: The concept of stock split up is to indicate the effective increase of th...

Q: How much of Ridge Road’s $3,700,000 payment for Sauk Trail is attributable to goodwill? What amount...

A: Solution:- Given, On January 1,2020, Ridge Road company Acquired 25% of the voting shares of Sauk T...

Q: On January 1, 2024, Lanny, Inc. purchased a copyright for $410,000 cash. The copyright is expected t...

A: Amortization refers to systematic allocation of the cost of intangible assets throughout it's useful...

Q: This problem continues the process of preparing the Kipley Company's Employee Payroll Register for t...

A: Employee payroll register is a book in which all the records of all the employees for the particular...

Q: A company roll out its capital budget for the coming year at P20,000,000. The optimal capital struct...

A: Interest = Debt x Interest Rate A Stock Split is a corporate action which increase the no. of shares...

Q: Problem 9 Hilarious Company provided the following data pertaining to machinery on the date of reval...

A: Reduction is the value of the asset with the time known as depreciation. By different methods, we ca...

Q: may you please help me with the following question thank you

A: These are the accounting transactions that are having a monetary impact on the financial statement o...

Q: a)Determine the value of the bonds. Assume an interest rate of 12% b)If the rates increase by 1%, w...

A: Bond A B Par Value 100 100 Coupon Rate 10% 8% Rate of Interest 12% 12% Assume Maturity ...

Q: Accrued interest income was overlooked in year 2021, what is its effect in Net income of 2023? O No ...

A: The accrued interest revenue is the revenue earned but not received yet. It is recorded as an asset ...

Q: Ramirez Company made the following payments related to a land acquisition: Purchase price $7,500 Pa...

A: Items to be included in Capitalizable cost of land :- Purchase price Past due taxes Title search ...

Q: Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $600,00...

A: Under Last-in-First out method, inventory that is brought at later dates is sold first ( Newest good...

Q: Any-How Restaurant sells grilled chicken at P350.00 each and incurs a variable cost per unit of P300...

A: Contribution margin per unit = Selling price - Variable cost = 350 - 300 = 50 ...

Q: tequired A. Explain the difference between tax reliefs and tax credits

A: (a) In this question,I have explained the difference between tax credit and tax relief

Q: information, please prepare income statements using both traditional and contribution formats Items ...

A: INCOME statement is prepare to know the profit position of a company . it can be done by preparing ...

Q: To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory recor...

A: LIFO reserve = FIFO inventory - LIFO inventory FIFO , in first in first out inventory the inventory ...

Q: The following information is available for the ABC Company for its March 31 bank reconciliation: Fro...

A: The bank reconciliation statement is prepared to equate the balance of cash book and pass book with ...

Q: Instructions O Journal Creative Images Co. offers its services to individuals desining to improve th...

A: 1. Closing Entries - Closing Entries are made at the end of the year to close temporary accounts. Te...

Q: Martin has a controlling interest in Rowen's outstanding stock. At the current year-end, the followi...

A: Introduction Consolidated financial statements are the financial statements of a company with multip...

Question

Given the following data for ABC company for the year ended 2018:
inventory turnover ratio =
5.3125x
average inventory = P160,000.00.
If the gross profit is Php 500,000.00 and the fixed asset turnover is 1.25x, what is the amount of PPE?
A P800,000
P1,080,000
c) P625,000
P850,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Answer

VIEW

Working Notes

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Use the following information relating to Clover Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Inventory turnover
Calculate the 2019 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computrons utilization of assets stack up against that of other firms in its industry?
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Inventory Analysis Singleton Inc. reported the following information for the current year: Required: Compute Singletons (a) gross profit ratio, (b) inventory turnover ratio, and (c) average days to sell inventory. (Note: Round all answers to two decimal places.)
When the double-extension approach to the dollar-value LIFO inventory cost flow method is used, the inventory layer added in the current year is multiplied by an index number. How would the following be used in the calculation of this index number?
Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places.) 2. Next Level Explain whether the companys return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000