1. ABC Had sales of P12,000,000 of which all were on credit. Its operations resulted to a gross profit margin of 60%. If the inventory was P600,000 and P1,000,000 at the beginning and end of the year, what is the inventory turnover? 2. Review the incomplete horizontal analysis shown in the image. Assuming that for 2021, the debt-to-equity ratio of the firm is 1:2, and 40% of the liabilities is current, what is the current ratio? 2020 in pesos 2021 in percent P ??? 2,500,000 P 3,000,000 Current Assets 110% Noncurrent Assets 105% Total Assets ???% 3. An entity has an earnings per share of P5.10 while its dividends yield is 7.5%. If its average market price per share is P60, what is the entity's earnings retention rate?

1. ABC Had sales of P12,000,000 of which all were on credit. Its operations resulted to a gross profit margin of 60%. If the inventory was P600,000 and P1,000,000 at the beginning and end of the year, what is the inventory turnover? 2. Review the incomplete horizontal analysis shown in the image. Assuming that for 2021, the debt-to-equity ratio of the firm is 1:2, and 40% of the liabilities is current, what is the current ratio? 2020 in pesos 2021 in percent P ??? 2,500,000 P 3,000,000 Current Assets 110% Noncurrent Assets 105% Total Assets ???% 3. An entity has an earnings per share of P5.10 while its dividends yield is 7.5%. If its average market price per share is P60, what is the entity's earnings retention rate?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 1PEB: Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40%...

See similar textbooks

Similar questions

For the year ended December 31, 2022, Settles Incorporated earned an ROI of 7.2%. Sales for the year were $11 million, and average asset turnover was 1.8. Average stockholders' equity was $3.1 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income b. Return on equity %
Reconstruct the account of DTA Corp. for analysis. The available financial data were Gross margin for 2021 amounted to P472,500; merchandise inventory at the end was P300,000; long term debts consisted of bonds payable with interest rate of 20% per annum and total stockholders’ equity of P750,000. Additional information showed gross margin ratio of 35%; debt to equity ratio of .8:1, times interest earned of 10; quick ratio of 1.3 and ratio to operating expenses to sales of 18%. What is the operating income for 2021?
for the year ending december 31 2019, settles inc. eanred an ROI of 8.8%. Sales for the year were 16 million and average asset turnover was 2.1. Average stockholder equity was 2.7 million. a. calculate settles margin and net inccome b. calculate settles return on equity
Below are the ratio results for Abcom for the year 2022. Performance Operating margin -18.66% Asset turnover 0.16 Return on Capital Employed -7.64% Working capital Inventory days 88.88 days Debtor days 46.18 days Trade creditor days 68.11 days Liquidity Current ratio 0.30 Acid test 0.25 Solvency Interest cover -2.56 Shareholder's view Return on equity 7.16% Required; Analyse and interpret the meaning of these results.
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.
The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses. Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $852,000 27,000 7,400 12,000 42,000 $3,006,000 1,944,000 1,062,000 940, 400 $ 121,600 VIRTUAL GAMING SYSTEMS Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Balance Sheets December 31 2021 $180,000 75,000 99,000 11,400 99,000 204,000 264,000 (63,000) $869,400 $ 60,000 4,800 12,000 279,000 294,000 219,600 2020 $138,000 54,000 129,000…
Last year Vaughn Corp. had sales of $310,000 and a net income of $17,574, and its year-end assets were $217,000. The firm's total-debt-to-total-assets ratio was 45.8%. Based on the Du Pont equation, what was Vaughn's ROE? Note: Do not round intermediate calculations. Group of answer choices 18.12% 16.45% 15.68% 14.94% 17.27%
Roxanne Carter Corporation reported the following for 2020: net sales $1,200,000, cost of goods sold $750,000, selling and administrative expenses $320,000, and an unrealized holding gain on available-for-sale debt securities $18,000. Instructions Prepare a statement of comprehensive income, using (a) the one statement format, and (b) the two statement format. (Ignore income taxes and earnings per share.)
a. Sales for 2018 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciationand amortization were 11% of net fixed assets, interest was $8,575,000, thecorporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Giventhis information, construct the firm’s 2018 income statement.b. Construct the statement of stockholders’ equity for the year ending December 31, 2018,and the 2018 statement of cash flows.c. Calculate 2017 and 2018 net operating working capital (NOWC) and 2018 free cashflow (FCF). Assume the firm has no excess cash.d. If Laiho increased its dividend payout ratio, what effect would this have on corporatetaxes paid? What effect would this have on taxes paid by the company’s shareholders?e. Assume that the firm’s after-tax cost of capital is 10.5%. What is the firm’s 2018 EVA?f. Assume that the firm’s stock price is $22 per share and that at year-end 2018 the firmhas 10 million shares outstanding. What is the firm’s MVA at year-end 2018?
ss
Based on the following information as of December 31,2020, compute the company’s debt-equity ratio. Assume current liabilities are all interest-bearing. Round to nearest two decimal places. Current assets: 15 Non-current assets: 12 Current Liabilities: 22 Non-current Liabilities: 4 Debt to Equity Ratio = ?
The 2Ball's Co's sales are forecasted to double from P1,000,000 in 2020 to P2,000,000 in 2021. The figures in the Dec. 31,2020, balance sheet (in thousands) follows: Current Assets, P500; Net Fixed Assets, P500; Accounts Payable and Accruals, P100; Notes Payable, P150; Long-term debt, P400; Common Stock, P100; Retained Earnings, P250. The 2Balls fixed assets were used to only 50% of capacity in 2020, but its current assets were at their proper level in relation to sales. All assets except fixed assets must increase in the same rate as sales and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. 2Balls' after tax profit margin is forecasted to be 5% and its payout ratio to be 60%. What is 2Balls Co.'s additional fund needed (AFN) for the coming year?