ABC Corporation 1

Statement of Financial Position

December 31, 2019 2
ASSETS LIABILITIES AND EQUITY
Cash ₱50,500 Accounts Payable ₱65,000 3
Account Receivables 52000 Long Term Debt 75500
Inventories 60500 Common Stock 53500 4
Fixed Assets 137000 Retained Earnings 106000
Total Assets ₱300,000 Total Liabilities and Equity ₱300,000 5

ABC Corporation 6
Income Statement
December 31, 2019 7
Sales ₱450,000
Cost of Sales -324000 8
Gross Profit ₱126,000
General And Administrative Expenses -27500 9
Earnings Before Interest and Tax ₱98,500
Interest Expense -12000 10
Earnings Before Tax ₱86,500
Tax 30% -25950 11
Net Income ₱60,550
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 RATIOS
Current Ratio
Inventory Turnover
Net Profit Margin Ratio
Quick Asset Test Ratio
Accounts Receivable Turover
Return On Equity
Debt Ratio
Return on Assets
Time Interest Earned Ratio
Total Assets Turnover
Return on Equity
Net Profit Margin Ratio
Operating Cycle
FORMULA SOLUTION AND ANSWER
Current Assets ₱163,000
Current Liabilities ₱65,000 2.50769230769231
Cost Of Good Sold 324000
Average Inventory 60500 5.35537190082645
Net Profit ₱60,550
Net Sales ₱450,000 0.134555555555556
Cash+ Marketable Securitites+ A/R ₱102,500
Current Liabilities ₱65,000 1.57692307692308
Net Credit Sales
Average Account Receivable
Net Income ₱60,550
Average Com stockholder Equity
Total Debt
Total Equity
Net Income ₱60,550
Total Assets ₱300,000 0.201833333333333
Earnings Before Tax ₱86,500
Interest Expense ₱12,000 7.20833333333333
Net Sales
Average Total Assets
Net Income
Average Com stockholder Equity
Net Profit
Net Sales
Average Collection Period+
Average age Inventory