ACTIVITY 04 s.

2020-2021
NAME: MARIA PATRICIA MAGAT SCORE
GRADE & SECTION: 12 ABM B DATE: December 11, 2020

The comparative statements of Rock Company are presented here.

ROCK COMPANY
Income Statements
For the Years Ended December 31

2011 2010
Net Sales P780,000 P624,000
Cost of goods sold 440,000 405,600
Gross profit 340,000 218,400
Selling and administrative expenses 143,880 149,760
Income from operations 196,120 68,640
Other expenses and losses
Interest expense 9,920 7,200
Net Income P186,200 P61,440

ROCK COMPANY
Statement of Financial Position
December 31

2011 2010
Assets
Current assets
Cash P23,100 P21,600
Short-term Investments 34,800 33,000
Accounts receivable (net) 106,200 93,800
Inventory 116,400 64,000
Total current assets 280,500 212,400
Plant assets (net) 455,300 459,600
Total assets P735,800 P672,000

Liabilities and Stockholders’ Equity

Current liabilities
Account payable P168,200 P132,200
Taxes payable 25,300 24,000
Total current liabilities 193,500 156,000
Loans Payable 132,000 120,000
Total liabilities 325,500 276,000
Owner’s equity 410,300 396,000
Total Liabilities and owner’s equity P735,800 P672,000
All sales were on account.

Instructions:
Compute the following ratios for 2011.
a. Rate of return on assets h. Days in inventory.
b. Return on owner’s equity. i. Quick Ratio
c. Return on assets. J. Asset turnover.
d. Current ratio. k. Working Capital
e. Receivables turnover. l. Debt Ratio
f. Average collection period. m. Equity Ratio
g. Inventory turnover. o. Gross Profit Ratio

NOTE:
1. Round all computations to 2 decimal places.
2. Show computations.
3. No unit, no points.

Write answers below: (Use as much space as needed

a. 186,200+ 9,920 46.79

(735,800+672,000)/2) =7.80 days

196,120 = 0.28 or 28%

703,900 g. 440,000
(116,400 + 64,000)/2)
b. 186,200 = 0.45 pesos
410,300 440,000 = 4.85
90,200 =365/4.85
c. 186,200 =75.26 days
(735,800+672,000)/2)

186,200 = 0.26 or 26 %
703,900 h. 365
72.26
=4.85 days
d. 280,500 =1.45
193,500 =1.45:1 Higher i. 23,100+106,200
193,500
e. 780,000
(106,200+93,800)/2) 129,300
193,500
=780,000 =7.8 x
100,000 =365/7.8 =0.67
=46.79 days =0.67:1 lower

f. 365 j. 780,000
(735,800+672,000)/2)
780,000 =1.11 o. 340,000
703,900 =365/1.11 780,000

= 329.23 days =0.44 or 44%

k. 280,500-193,500
=87,000 pesos

l. 325,500 =0.44 or 44% Lower

735,800

m. 410,300 =0.56 or 56% Higher

735,800