The following information pertains to Sergio Co. Net accounts receivable December 31, 2012 P300,000 December 31, 2011 200,000 Inventories December 31, 2012 350,000 December 31, 2011 250,000 Accounts receivable turnover 8 Inventory turnover 5 The average collection period of receivable and the average conversion period of inventories are: a. 45 and 72 c. 45 and 45 b. 72 and 45 d. 72 and 72 2. Refer to no. 1 . The gross margin was : a. 500,000 b. 400,000 c. 300,000 d. 100,000
1. The following information pertains to Sergio Co.
Net
December 31, 2012 P300,000
December 31, 2011 200,000 Inventories
December 31, 2012 350,000
December 31, 2011 250,000
Accounts receivable turnover 8
Inventory turnover 5
The average collection period of receivable and the average conversion period of inventories are:
a. 45 and 72 c. 45 and 45
b. 72 and 45 d. 72 and 72
2. Refer to no. 1 . The gross margin was :
a. 500,000 b. 400,000 c. 300,000 d. 100,000
3. Jones Corp. had the following results for the period just ended; Sales P 2.0 million Net Income P 0.5 million; Capital Investment P 1.0 million
To arrive at the return on investment, the following should be used:
a. ROI = (20/20) X (20/5) c. ROI = (10/20) X (20/5)
b. ROI = (20/10) X (5/20) d. ROI = (10/20) X (5/20)
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