Assignment on FS Analysis:

1. The current assets of Canon Enterprise consists of cash, accounts receivable, and inventory. The following
information is available:

Credit sales 75% of total sales

Inventory turnover 5 times
Working capital P1, 120, 000
Current ratio 2.00 to 1
Quick ratio 1. 25 to 1
Average collection period 42 days
Working days 360

What is the estimated inventory amount: ____________________________________________

2. Selected data from Claudine Company’s year- end financial statements are presented below. The difference
between average and ending inventory is immaterial.
Current ratio 2.0
Quick ratio 1.5
Current liabilities P120,000
Inventory turnover (based on cost of sales) 8 times
Gross profit margin 40 %

Claudine’s net sales for the year were: _______________________________________________

3. Selected information from the accounting records of the Cruise Company is as follows:
Net A/R at December 31, 2020 P 900,000
Net A/R at December 31, 2021 P 1,000,000
Accounts receivable turnover 5 to 1
Inventories at December 31, 2020 P 1, 100,000
Inventories at December 31, 2021 P 1, 200,000
Inventory turnover 4 to 1

What was the gross margin for 2021? _____________________________________

4. Selected financial data of Chiller Corporation for the year ended December 31, 2020 is presented below:
Operating income P900,000
Interest expense (100,000)
Income before income taxes 800,000
Income tax (320,000)
Net income 480,000
Preferred stock dividends (200,000)
Net income available to common stockholders 280,000

Common stock dividends were P120,000. The payout ratio is : ________________________________________

5. The balance sheets of Character Company at the end of each of the first two years of operations indicate the
following:

2020 2019
Total current assets P 600,000 P 560,000
Total investments 60,000 40,000
Total property , plant and equipment 900,000 700,000
Total current liabilities 150,000 80,000
Total long- term liabilities 350,000 250,000
Preferred 9 % stock, P100 par 100,000 100,000
Common stock, P10 par 600,000 600,000
Paid – in capital in excess of par – common stock 60,000 60,000
Retained earnings 300,000 210,000

Net income is P115,000 and interest expense is P30,000 for 2020.

What is the rate earned on total assets for 2010? ______________________________________________

What is the rate earned on stockholders’ equity for 2020? ____________________________________
What is the earning per share on common stock for 2020? ___________________________________
If the market price is P30, what is the price- earnings ratio on common stock for 2020? ________________________________