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1. The Cost of Sales during the period is equal to 65% of net sales. This resulted to a gross profit of P1,050,000. 2. Selling expenses are 15% of net sales, while net income is 5% of net sales. 3. Quick assets are composed of cash, Marketable Securities and Accounts Receivable. The ratio of cash to Marketable Securities is 1:3, while Marketable Securities to Accounts Receivable is 1.2. 4. Total Quick Assets is twice as the Current Liabilities, while the ratio of total current assets to total current liabilities is 3:1. 5. The Accounts Receivable turn-over and the inventory turn-over are the same at 5 times, while total assets turn-over is once a year. 6. The company has an intangible assets the amount of which is P1 for every P20 of the total assets. 7. Accounts payable is 150% of Accounts Receivable 8. The ratio of shareholders' equity to working capital is 1.6. 9. The Land, Building and Equipment at net is 2/3 of its cost. 10. The bond interest is earned 2 times a year. 11. The earning per share of ordinary shares is P10 per share. The ordinary shares have a par value of P50. The shares were issued at 20% above pa value, while the preferential shares which offers 8% dividends and a par value of P50 were issued at P55 per share. 12. For the immediate past year, a P10,000 dividends was paid to preferential shareholders and the same amount will be paid for the current year. 13. It has been the practice of the company to purchase and sold their products on account. From the above financial relationships, compute the amount of following:

1. The Cost of Sales during the period is equal to 65% of net sales. This resulted to a gross profit of P1,050,000. 2. Selling expenses are 15% of net sales, while net income is 5% of net sales. 3. Quick assets are composed of cash, Marketable Securities and Accounts Receivable. The ratio of cash to Marketable Securities is 1:3, while Marketable Securities to Accounts Receivable is 1.2. 4. Total Quick Assets is twice as the Current Liabilities, while the ratio of total current assets to total current liabilities is 3:1. 5. The Accounts Receivable turn-over and the inventory turn-over are the same at 5 times, while total assets turn-over is once a year. 6. The company has an intangible assets the amount of which is P1 for every P20 of the total assets. 7. Accounts payable is 150% of Accounts Receivable 8. The ratio of shareholders' equity to working capital is 1.6. 9. The Land, Building and Equipment at net is 2/3 of its cost. 10. The bond interest is earned 2 times a year. 11. The earning per share of ordinary shares is P10 per share. The ordinary shares have a par value of P50. The shares were issued at 20% above pa value, while the preferential shares which offers 8% dividends and a par value of P50 were issued at P55 per share. 12. For the immediate past year, a P10,000 dividends was paid to preferential shareholders and the same amount will be paid for the current year. 13. It has been the practice of the company to purchase and sold their products on account. From the above financial relationships, compute the amount of following:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. The Cost of Sales during the period is equal to 65% of net sales. This resulted to a gross profit of P1,050,000. 2. Selling expenses are 15% of net sales, while net income is 5% of net sales. 3. Quick assets are composed of cash, Marketable Securities and Accounts Receivable. The ratio of cash to Marketable Securities is 1:3, while Marketable Securities to Accounts Receivable is 1.2. 4. Total Quick Assets is twice as the Current Liabilities, while the ratio of total current assets to total current liabilities is 3:1. 5. The Accounts Receivable turn-over and the inventory turn-over are the same at 5 times, while total assets turn-over is once a year. 6. The company has an intangible assets the amount of which is P1 for every P20 of the total assets. 7. Accounts payable is 150% of Accounts Receivable 8. The ratio of shareholders' equity to working capital is 1.6. 9. The Land, Building and Equipment at net is 2/3 of its cost. 10. The bond interest is earned 2 times a year. 11. The earning per share of ordinary shares is P10 per share. The ordinary shares have a par value of P50. The shares were issued at 20% above par value, while the preferential shares which offers 8% dividends and a par value of P50 were issued at P55 per share. 12. For the immediate past year, a P10,000 dividends was paid to preferential shareholders and the same amount will be paid for the current year. 13. It has been the practice of the company to purchase and sold their products on account. From the above financial relationships, compute the amount of following:
Transcribed Image Text:1. The Cost of Sales during the period is equal to 65% of net sales. This resulted to a gross profit of P1,050,000. 2. Selling expenses are 15% of net sales, while net income is 5% of net sales. 3. Quick assets are composed of cash, Marketable Securities and Accounts Receivable. The ratio of cash to Marketable Securities is 1:3, while Marketable Securities to Accounts Receivable is 1.2. 4. Total Quick Assets is twice as the Current Liabilities, while the ratio of total current assets to total current liabilities is 3:1. 5. The Accounts Receivable turn-over and the inventory turn-over are the same at 5 times, while total assets turn-over is once a year. 6. The company has an intangible assets the amount of which is P1 for every P20 of the total assets. 7. Accounts payable is 150% of Accounts Receivable 8. The ratio of shareholders' equity to working capital is 1.6. 9. The Land, Building and Equipment at net is 2/3 of its cost. 10. The bond interest is earned 2 times a year. 11. The earning per share of ordinary shares is P10 per share. The ordinary shares have a par value of P50. The shares were issued at 20% above par value, while the preferential shares which offers 8% dividends and a par value of P50 were issued at P55 per share. 12. For the immediate past year, a P10,000 dividends was paid to preferential shareholders and the same amount will be paid for the current year. 13. It has been the practice of the company to purchase and sold their products on account. From the above financial relationships, compute the amount of following:
10. Accounts Payable 11. Shareholders' Equity 12. Total Current Liabilities 13. Total Current Assets 14. Cost of Land, Building and Equipment 15. Accumulated Depreciation,
Transcribed Image Text:10. Accounts Payable 11. Shareholders' Equity 12. Total Current Liabilities 13. Total Current Assets 14. Cost of Land, Building and Equipment 15. Accumulated Depreciation,
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