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 ??? Current Assets 110% Noncurrent Assets 2,500,000 105% Total Assets P 3,000,000 ???%
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 ??? Current Assets 110% Noncurrent Assets 2,500,000 105% Total Assets P 3,000,000 ???%
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: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
???%
Transcribed Image Text:4. Analyze the given vertical analysis and compute
for the quick ratio. *
In Pesos In Percent
500,000
Cash
Short-term Investments
2
Receivables
600,000
Inventories
8
Prepaid and Other Current Assets
100,000
Total Current Assets
Total Noncurrent Assets
6,000,000
75
Total Assets
Current Liabilities
?
Noncurrent Liabilities
Equity
Total Liabilities and Equity
40
3,200,000
5. Compute the quantity variance based on the
data on the image.
2018
Sale Price
Cost per Unit
2019
P 520 P 500
330
360
Units Sold
13,000 13,500
6. Assuming that the sales price increased by 5%, what is
the cost price variance? *
2021
P 6,235,500| P 6,000,000
Cost of Sales 5,049,000 5,000,000
2020
Sales
7. How much is the sales price-
volume variance? *
P 861,250
900,000
Gross Profit Last Year
Gross Profit This Year
Change in units sold last year
Units Sold
650
50
P 100
Change in sales price
Change in cost price
75
Excerpt from the four-way analysis:
Sales Quantity Variance - Unfavorable P 245,000
Cost Price Variance - Favorable
45,000
Cost Quantity Variance - Favorable
178,750
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