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 tem 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 6,600,000 2,460,000 8,600,000 P 17,660,000 2020 P 180,000 1,800,000 1,060,000 1,640,000 4,680,000 5,040,000 5,200,000 P 10,240,000 P 2,620,000 2,120,000 5,500,000 P 10,240,000 Veery Beery Company Statement of Comprehensive Income For the Year-ended December 31 Sales Cost of Goods Sold Gross Profit Operating Expenses |Operating Incomæ Interest Experse |Net Income 2019 P 10,040,000 5,680,000 4,360,000 1,160,000 3,200,000 100,000 P 3,1000,000 2020 P 8,760,000 5,860,000 2,800,000 1,680,000 1,220,000 28,000 P1,192,000 Requirements: Compute for the following financial ratios. 1. Cument 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-aquity ratio 11. Gross profit ratio 12. Net profit ratio 13. Retum on assets 14. Retum on equity
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 tem 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 6,600,000 2,460,000 8,600,000 P 17,660,000 2020 P 180,000 1,800,000 1,060,000 1,640,000 4,680,000 5,040,000 5,200,000 P 10,240,000 P 2,620,000 2,120,000 5,500,000 P 10,240,000 Veery Beery Company Statement of Comprehensive Income For the Year-ended December 31 Sales Cost of Goods Sold Gross Profit Operating Expenses |Operating Incomæ Interest Experse |Net Income 2019 P 10,040,000 5,680,000 4,360,000 1,160,000 3,200,000 100,000 P 3,1000,000 2020 P 8,760,000 5,860,000 2,800,000 1,680,000 1,220,000 28,000 P1,192,000 Requirements: Compute for the following financial ratios. 1. Cument 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-aquity 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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Transcribed Image Text:Can You Solve the Problem?
Directions: Read and analyze the problemthen prepare the recessary requirements.
Veery Beery Company
Statement of Financial Position
For the Year-ended December 31
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 6,600,000
2020
180,000
1,800,000
1,060,000
1,640,000
4,680,000
Cash
Short-term investments
Accounts receivable
Inventory
Other Cunent Assets
P
Total Cunent Assets
Equipment
Total Assets
Accounts Payable
Notes Payable - long tem
Owner, Capital
|Total liabilities and equity
5,040,000
5,200,000
P 10,240,000
P 2,620,000
2,120,000
5,500,000
P 10,240,000
2,460,000
8,600,000
P 17,660,000
Veery Beery Company
Statement of Comprehensive Income
For the Year-ended December 31
Sales
Cost of Goods Sold
GIDss Profit
Operating Expenses
| Operating Income
Interest Expense
Net Income
2019
P 10,040,000
5,680,000
4,360,000
1,160,000
3,200,000
100,000
P 3,1000,000
2020
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. Current ratio
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
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