Explain the following ratios. Liquidity Ratios20202019Current Ratio1.061.26P254,511,000|P239,957,000P248,357,000|P196,719,000Current AssetsCurrent LiabilitiesAcid Ratio0.760.87P254,511,000P72,056,000|P248,357,000P77,120,000P196,719,000Current AssetsInventoryCurrent LiabilitiesP239,957,000Profitability RatioGross Margin31.17%36.42%P259,593,000|P377,149,000|COG/COSP302,612,000P475,931,000Net SalesNet Profit Margin-3.69%-30.70%-P13,904,000P377,149,000Net Profit/Net Income-P146,095,000Net SalesP475,931,000Debt Management RatioLeverage116%112.82%P655,124,000P564,728,000P604,893,000P536,151,000Total LiabilitiesTotal EquityAsset Management RatioInventory Turnover3.603.92P302,612,00077,120,000Cost of SalesP259,593,000|Inventory72,056,000 Balance Sheet20192020AssetsCash & Short Investments77,021,00078,903,000Accounts Receivable68,109,00076,220,000Inventories77,120,00072,056,000Other Current Assets26,107,00027,332,000TOTAL CURRENT ASSETS248,357,000254,511,000Net Property, Plant & Equipment137,332,000143,689,000Total Investments and Advances646,648,000684,877,00030,824,00025,290,000Long-Term Note Receivable51,816,000Intangible Assets24,589,000Other Assets52,593,00060,370,000TOTAL LONG-TERM ASSETS892,687,000965,341,000TOTAL ASSETS1,141,044,0001,219,852,000Liabilities49,322,00085,997,0003,274,00058,126,000196,719,000354,959,0006,483,000ST Debt &Current Portion LT Debt86,259,000Accounts PayableIncome Tax Payable82,599,0002,649,000Other Current Liabilities68,449,000TOTAL CURRENT LIABILITIES239,957,000Long-Term Debt359,600,000Deferred Taxes7,943,000Other Liabilities46,732,00047,624,000TOTAL LIABILITIES604,893,000655,124,000EquityShareholder's Equity382,627,000403,833,000Accumulated Minority Interest153,524,000160,895,000TOTAL EQUITY536,151,0001,141,044,000564,728,000TOTAL LIABILITIES & SHAREHOLDERS' EQUITY1,219,852,000

1) Current ratio is decreasing from 1.26 to 1.06 from 2019 to 2020 which shows the liquidity of the…

Liquidity Ratios 2020 2019 Current Ratio 1.06 1.26 P254,511,000| P239,957,000| P248,357,000 P196,719,000 Current Assets Current Liabilities Acid Ratio 0.76 0.87 Current Assets P254,511,000 P248,357,000 P72,056,000| P239,957,000| Inventory P77,120,000 Current Liabilities P196,719,000 Profitability Ratio

Liquidity Ratios 2020 2019 Current Ratio 1.06 1.26 P254,511,000| P239,957,000| P248,357,000 P196,719,000 Current Assets Current Liabilities Acid Ratio 0.76 0.87 Current Assets P254,511,000 P248,357,000 P72,056,000| P239,957,000| Inventory P77,120,000 Current Liabilities P196,719,000 Profitability Ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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