1. If current assets are P270,000 and total assets are P810,000, what percentage of total assetsare current assets?a) 3.5 percent b) 30 percent c) 25 percent d) 33 percent2. Comparing the amount of a balance sheet item in one year to the amount for the same item ina prior year is calleda) common-size analysis.c) horizontal analysis.3. A firm has liabilities of P30,000 and owner's capital of P90,000. The percentage of totalliabilities to total assets isb) vertical analysis.d) ratio analysis.a) 25 percent. b) 20 percent.4. A firm had owner's capital of P150,000 in 2013 and P187,500 in 2013. The increase inowner's capital from 2013 to 2014 isa) 12.5 percent.5. If long-term liabilities are P300,000 and total assets are P2,100,000, what percentage of totalassets are long-term liabilities?a) 7 percentc) 50 percent. d) 75 percent.b) 20 percent. c) 25 percent.d) 125 percent.b) 16.7 percentc) 12.5 percentd) 14.3 percent

Solution:- Calculation of the percentage of total assets are current assets as follows:-…

Answered: 1. If current assets are P270,000 and…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1SEB

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Assuming that total assets were $8,037,000 at the beginning of the current fiscal year, determine the following: When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets e. Return on stockholders' equity f. Return on common stockholders' equity % % %
Required: (a) You are required to calculate the following ratios:(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years.
Suppose that you are given the following data for Niles Company : Note: The data and calculations are based on a 365-day year. Cash and equivalents Fixed assets Sales Net income Current liabilities Current ratio DSO ROE The current ratio is equal to assets value of Return on equity (ROE) is to approximately $225,000 $650,000 $2,500,000 $112,500 $240,000 2.5 18.25 12.00% The days sales outstanding (DSO) ratio is equal to accounts receivable balance of Plugging in the relevant values for the current ratio and current liabilities, and then solving yields a current . Adding fixed assets to current assets yields a value of total assets of Recall the following identity: Recall that Total Assets = Total Liabilities and Equity. Plugging in the relevant values for ROE and net income yields a value of total common equity of Mathematically, total liabilities and equity is equal to ▼. Plugging in the relevant values for total liabilities and equity, current liabilities, and equity (calculated…
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Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $383,000 $294,000 Marketable securities 443,500 330,800 Accounts and notes receivable (net) 181,500 110,200 Inventories 554,400 388,600 Prepaid expenses 285,600 248,400 Total current assets $1,848,000 $1,372,000 Current liabilities: Accounts and notes payable (short-term) $324,800 $343,000 Accrued liabilities 235,200 147,000 Total current liabilities $560,000 $490,000
A return on assets of 5.15% means that a company is earning: a.a $5.15 return on every $100 invested in long-term assets. b.a $5.15 return on every $100 of total assets. c.a $5.15 return on every $100 of assets minus liabilities. d.a $5.15 return on every $100 of current assets.
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A return on assets of 5.15% means that a company is earning: O a. a $5.15 return on every $100 of assets minus liabilities. O b. a $5.15 return on every $100 of total assets. O c. a $5.15 return on every $100 of current assets. O d. a $5.15 return on every $100 invested in long-term assets.
The process of communicating information that is relevant to investors, creditors, and others in making investment, credit, and similar decisions. The portion of total assets provided by stockholders' equity, computed as stockholders' equity divided by total assets. Refers to how productive a company is in using its assets. It is usually measured relative to how much revenue is generated for a certain level of assets. 1. Comparative Statement The application of analytical tools to general- purpose financial statements and related 2. Financial Reporting 3. Liquidity data for making business decisions. 4. Vertical Analysis Refers to the availability 5. Financial Statement Analysis of resources to meet short-term cash 6. Efficiency requirements. 7. Solvency Refers to a company's long-run financial viability and its ability to cover long-term obligations. 8. Equity Ratio 9. Profitability Comparative financial statements in which each 10. Common-size Statements amount is expressed as a…

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1. If current assets are P270,000 and total assets are P810,000, what percentage of total assets are current assets? a) 3.5 percent b) 30 percent c) 25 percent d) 33 percent