Current Ratio = 950,000/950,000 = 1

Quick Ratio = 950,000- 240,000/950,000= 0.75

Debt to total asset ratio = 518,000/ 950,000= 0.55

Asset turnover= 3,040,000/950,000= 3.2

Average collection period= 280,000/2,280,000*365=44.82

Sales forecast

3000 x 200 = 600,000 total sales last year

600 units increase total of 3600 units in the current year.

P20 price increase total of P220 per unit in the current year

Sales Projection of this year = 3600 x 220 = 792,000

Return Merchandise = 792,000 x .05 = 39,600

Sales forecast = 600,000 - 792,000/600,000 x 100 =32

February 60,000

March 70,000

April 75, 000

May 95,000

June 110,000

Total Sales: 410,000

90% which is 369,000 are on credit

60% is 221400

30% is 110700
Month February March April May June

Total Sales 60,000 70,000 75, 000 95,000 110,000

Credit sales 90% of $60,000 90% of $70,000 90% of $75,000 90% of $95,000 90% of
= $54,000 = $63,000 = $67,500 = $85,500 $110,000 =
$99,000
Collections Collections for Collections for Collections for Collections for Collections for
February sales March sales April sales May sales (60% June sales
(60% in March, (60% in April, (60% in May, in June, 40% in (60% in July,
40% in April): 40% in May): 40% in June): July): 40% in
March April May June August):
collections: collections: collections: collections: July collections:
60% of $54,000 60% of $63,000 60% of $67,500 60% of $85,500 60% of $99,000
= $32,400 = $37,800 = $40,500 = $51,300 = $59,400
April May June July collections: August
collections: collections: collections: 40% of $85,500 collections:
40% of $54,000 40% of $63,000 40% of $67,500 = $34,200 40% of $99,000
= $21,600 = $25,200 = $27,000 = $39,600
Ending February March ending April ending May ending June ending
Accounts ending A/R: A/R: $70,000 - A/R: $75,000 - A/R: $95,000 - A/R: $110,000 -
Receivable $60,000 - $63,000 = $67,500 = $85,500 = $99,000 =
$54,000 = $7,000 $7,500 $9,500 $11,000
$6,000