Below are the Statement of Financial Position of Malibu Finance Inc for the year 2020. Statement of Financial position 2020 Asset Cash P1,100,000.00 AR P1,027,000.00 Prepaid insurance P15,000.00 Marketable securities P600,000.00 Merchandise inventory P600,000.00 Furniture and fixtures [net] $350,000.00 Land P900,000.00 Building [net] $3,250,000.00 Total assets P7,842,000.00 Liabilities and Equity AP P1,530,000.00 Notes Payable (due in 6 months) P600,000.00 Bonds payable due in 5 years P500,000.00 Total liabilities P2,630,000.00 Shareholders Equity $4,000,000.00 Ordinary shares

Below are the Statement of Financial Position of Malibu Finance Inc for the year 2020. Statement of Financial position 2020 Asset Cash P1,100,000.00 AR P1,027,000.00 Prepaid insurance P15,000.00 Marketable securities P600,000.00 Merchandise inventory P600,000.00 Furniture and fixtures [net] $350,000.00 Land P900,000.00 Building [net] $3,250,000.00 Total assets P7,842,000.00 Liabilities and Equity AP P1,530,000.00 Notes Payable (due in 6 months) P600,000.00 Bonds payable due in 5 years P500,000.00 Total liabilities P2,630,000.00 Shareholders Equity $4,000,000.00 Ordinary shares

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Below are the Statement of Financial Position of Malibu Finance Inc for the year 2020.
Statement of Financial position
2020
Asset
Cash
P1,100,000.00
AR
P1,027,000.00
Prepaid insurance
P15,000.00
Marketable securities
P600,000.00
Merchandise inventory
P600,000.00
Furniture and fixtures [net]
P350,000.00
Land
$900,000.00
Building [net]
$3,250,000.00
Total assets
#7,842,000.00
Liabilities and Equity
AP
P1,530,000.00
Notes Payable (due in 6 months)
P600,000.00
Bonds payable due in 5 years
P500,000.00
Total liabilities
P2,630,000.00
Shareholders Equity
Ordinary shares
$4,000,000.00

Retained earnings
Treasury shares
Total Shareholders equity
Total liabilities and Shareholders Equity
Required:
Compute for the following:
1. debt ratio
2. Equity ratio
3. Acid test Ratio
P1,212,000.00
$5,212,000.00
$7,842,000.00

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