The following data represent selected information from the comparative income statement and balance sheet for

Little
Mermaid Company for the years ended December 31, 2015 and 2016:
Selected Data
2016 2015
Net sales (all on credit) P370,000 P333,000
Cost of goods sold 160,000 150,000
Gross profit 210,000 183,000
Income from operations 95,000 87,000
Interest expense 8,000 8,000
Net income 70,000 57,000
Cash 10,000 14,000
Accounts receivable, net 30,000 25,000
Inventory 43,000 40,000
Prepaid expenses 5,000 7,000
Total current assets 88,000 86,000
Total noncurrent assets 112,000 104,000
Total current liabilities 70,000 60,000
Total noncurrent liabilities 40,000 45,000
Ordinary share capital, no par * 60,000 60,000
Retained earnings 30,000 25,000

*Note: 10,000 ordinary shares have been issued and outstanding since the company was established. They had a market
value of P90 per share at 12/31/15, and they were selling for P91.50 per share at 12/31/16.

1. Current ratio at 12/31/16. 2. Acid-test ratio at 12/31/15.

3. Inventory turnover for the year ended 12/31/16. 4. Accounts receivable turnover for the year ended
12/13/16.
5. Days sales in receivables for the year ended 12/31/16. 6. Debt ratio at 12/31/16.
7. Time-interest-earned ratio for the year ended 12/31/16. 8. Rate of return on net sales for the year ended
12/31/15.
9. Rate of return on total assets for the year ended 12/31/16. 10.Rate of return on ordinary shareholders’ equity for
the year ended 12/31/16/
11. Earnings per share for the year ended 12/31/16. 12. Price/earnings ratio at 12/31/16.

The following data represent selected information from the comparative income statement and balance sheet for Little
Mermaid Company for the years ended December 31, 2015 and 2016:
Selected Data
2016 2015
Net sales (all on credit) P370,000 P333,000
Cost of goods sold 160,000 150,000
Gross profit 210,000 183,000
Income from operations 95,000 87,000
Interest expense 8,000 8,000
Net income 70,000 57,000
Cash 10,000 14,000
Accounts receivable, net 30,000 25,000
Inventory 43,000 40,000
Prepaid expenses 5,000 7,000
Total current assets 88,000 86,000
Total noncurrent assets 112,000 104,000
Total current liabilities 70,000 60,000
Total noncurrent liabilities 40,000 45,000
Ordinary share capital, no par * 60,000 60,000
Retained earnings 30,000 25,000

*Note: 10,000 ordinary shares have been issued and outstanding since the company was established. They had a market
value of P90 per share at 12/31/15, and they were selling for P91.50 per share at 12/31/16.

1. Current ratio at 12/31/16. 2. Acid-test ratio at 12/31/15.

3. Inventory turnover for the year ended 12/31/16. 4. Accounts receivable turnover for the year ended
12/13/16.
5. Days sales in receivables for the year ended 12/31/16. 6. Debt ratio at 12/31/16.
7. Time-interest-earned ratio for the year ended 12/31/16. 8. Rate of return on net sales for the year ended
12/31/15.
9. Rate of return on total assets for the year ended 12/31/16. 10.Rate of return on ordinary shareholders’ equity for
the year ended 12/31/16/
11. Earnings per share for the year ended 12/31/16. 12. Price/earnings ratio at 12/31/16.