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Reconstruct the account of DTA Corp. for analysis.  The available financial data were Gross margin for 2021 amounted to P472,500; merchandise inventory at the end was P300,000; long term debts consisted of bonds payable with interest rate of 20% per annum and total stockholders’ equity of P750,000.  Additional information showed gross margin ratio of 35%; debt to equity ratio of .8:1, times interest earned of 10; quick ratio of 1.3 and ratio to operating expenses to sales of 18%.  What is the operating income for 2021?

Reconstruct the account of DTA Corp. for analysis.  The available financial data were Gross margin for 2021 amounted to P472,500; merchandise inventory at the end was P300,000; long term debts consisted of bonds payable with interest rate of 20% per annum and total stockholders’ equity of P750,000.  Additional information showed gross margin ratio of 35%; debt to equity ratio of .8:1, times interest earned of 10; quick ratio of 1.3 and ratio to operating expenses to sales of 18%.  What is the operating income for 2021?

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.8E
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Reconstruct the account of DTA Corp. for analysis.  The available financial data were Gross margin for 2021 amounted to P472,500; merchandise inventory at the end was P300,000; long term debts consisted of bonds payable with interest rate of 20% per annum and total stockholders’ equity of P750,000.  Additional information showed gross margin ratio of 35%; debt to equity ratio of .8:1, times interest earned of 10; quick ratio of 1.3 and ratio to operating expenses to sales of 18%.  What is the operating income for 2021?

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