1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant and equipment, net Total Assets P 160,000 240,000 130,000 60,000 590,000 910,000 P1.500,000 P1,540,000 P 180,000 300,000 130,000 _ 60,000 670,000 870,000 Current Liabilities: P 150,000 30,000 90,000 270,000 190,000 460,000 P 180,000 30,000 _90,000 300,000 220.000 520,000 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities Stockholders' Equity: Preferred stock, Pl00 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity ABS 200,000 100,000 140,000 580.000 1,020,000 P 1,500,000 P1,540,000 200,000 100,000 140,000 _ 600,000 1,040,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes P1,240,000 (820,000) 420,000 |(290,000) 130,000 |(30,000) 100,000 Income taxes (30%) Net income _(30,000) P 70,000 Required: Compute the following for 2020: a. Working capital.
1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant and equipment, net Total Assets P 160,000 240,000 130,000 60,000 590,000 910,000 P1.500,000 P1,540,000 P 180,000 300,000 130,000 _ 60,000 670,000 870,000 Current Liabilities: P 150,000 30,000 90,000 270,000 190,000 460,000 P 180,000 30,000 _90,000 300,000 220.000 520,000 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities Stockholders' Equity: Preferred stock, Pl00 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity ABS 200,000 100,000 140,000 580.000 1,020,000 P 1,500,000 P1,540,000 200,000 100,000 140,000 _ 600,000 1,040,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes P1,240,000 (820,000) 420,000 |(290,000) 130,000 |(30,000) 100,000 Income taxes (30%) Net income _(30,000) P 70,000 Required: Compute the following for 2020: a. Working capital.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:EXERCISES:
1. XYZ Corporation's most recent balance sheet and income statement appear below:
XYZ Corporation
Statement of Financial Position
As of December 31,
2020
2019
Current Assets
P 180,000
300,000
130,000
| 60,000
670,000
870,000
P 1,500,000 P1.,540,000
P 160,000
240,000
130,000
Cash
Accounts receivable
Inventory
Prepaid expenses
Total current assets
60,000
590,000
910,000
Plant and equipment, net
Total Assets
Current Liabilities:
P 150,000
30,000
90,000
270,000
190,000
460,000
P 180,000
30,000
90,000
300,000
220,000
520,000
Accounts payable
Accrued liabilities
Notes payable, short term
Total current liabilities
Bonds payable
Total Liabilities
Stockholders' Equity:
Preferred stock, P100 par value, 5%
Common stock, P10 par value
Additional paid-in-capital – common
Retained earnings
Total Stockholders' Equity
Total Liabilities & Stockholders' Equity
AB
200,000
100,000
140,000
600,000
1,040,000
P 1,500,000 PI1,540,000
200,000
100,000
140,000
580,000
1,020,000
XYZ Corporation
Income Statement
For the Year Ended December 31, 2020
Sales (all on account)
Cost of goods sold
Gross Margin
Selling and administrative expense
Net operating income
Interest expense
Net income before taxes
P 1,240,000
(820,000)
420,000
|(290,000)
130,000
|(30,000)
100,000
(30,000)
P 70,000
Income taxes (30%)
Net income
Required:
Compute the following for 2020:
a. Working capital.
Transcribed Image Text:Required:
Compute the following for 2020:
a. Working capital.
Pg. 1
Financial Management
b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
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