Current Current Working

I. Assets Liabilities Capital

a. Sold merchandise costing P42,000 at a 25% mark
up on sellig price. 52500 52500
b. Settled supplier's account worth P50,000 within a 49000
period of 10 days. Terms: 2/15, n/30 50000 1000
c. Bought marketable securities for P45,000;
P20,000 down payment & the balance on account. 20000 15000 45000
d. Settled a long-term debt of P150,000 by issuance
of 12% Preferred Stock at P5 par value. 150000 150000
e. Discounted a P125,000 promissory note with a 121250
local bank at 12% for 90 days. 3750 125000

f. Sell equipment for P25,000; Cash-P5,000 and one 5000 5000

year 12% note for the balance 22000 20000
g. Declared cash dividends of P2.50 per share on
65,000 outstanding common shares 162500 162500
h. Acquires equipment for P35,000 by issuing a
five year term note. 35000 35000

II.
a year 1 2 3 4 5
1.075 1.145 1.225 1.311 1.469 50000
12500 13437.5 14312.5 15312.5 16387.5 18362.5 77812.5
127812.5
b 24000 25800 27480 29400 31464 35256 173400

III
FV= 560000 0.463 259280
6.71 83457.53

IV 150000 0.705 105750

0.588
105750 62181 167931