PROBLEM #10Cedric Corp has a current ratio of 3:1. The minimum desired ratio is 5:1. At present, thenet working capitalis P40,000. How much currentliabilities must be paid to achieve the minimumcurrent ratio?PROBLEM #11Abekautah Company reported cost of goods sold of P250,000 and operating expenses ofP150,000 (including depreciation ofP20,000). Income taxes are 35%.The after-taxreturnonsalesis 23.4%. How much was the sales revenue?

The current ratio is determined by dividing the current assets by the current liabilities. The net…

Cedric Corp has a current ratio of 3:1. The minimum desired ratio is 5:1. At present, the net working capitalis P40,000. How much current liabilities must be paid to achieve the minimum current ratio? PROBLEM #11 Abokoutah Company reported cost of goods sold of P250,000 and operating expenses of P150,000 (including depreciation ofP20,000). Income taxes are 35%.The after-taxreturnonsales is 23.4%. How much was the sales revenue?

Cedric Corp has a current ratio of 3:1. The minimum desired ratio is 5:1. At present, the net working capitalis P40,000. How much current liabilities must be paid to achieve the minimum current ratio? PROBLEM #11 Abokoutah Company reported cost of goods sold of P250,000 and operating expenses of P150,000 (including depreciation ofP20,000). Income taxes are 35%.The after-taxreturnonsales is 23.4%. How much was the sales revenue?

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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