Compute the following ratios and measurement for 2020a. Rate of return on invested capitalb. Cash flow from operations to total liabilitiesc. Ratio of stockholders' equity to total liabilities CashP 75,000P 85,000Marketable Securities25,00025,000Trade Receivables, net185,000245,000Inventory, at cost250,000220,000Prepaid Expenses15,00010,000Total Current AssetsP550,000P585,000Property and Other Assets:Equipment, netP340,000P320,000Other Assets15,00015,000Total Property and Other AssetsP355,000P335,000Total AssetsP905,000P920,000LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities:Trade PayablesP185,000P165,000Accrued Expenses20,00025,000Other Current Liabilities10,00010,000Total Current LiabilitiesP215,000P200,000Long-Term LiabilityMortgage PayableP120,000P120,000Stockholders' EquityCapital Stock, P100 parP300,000P300,000Additional Paid-In Capital30,00030,000Retained Earnings Appropriated80,00080,000Retained Earnings Unappropriated160,000190,000Total Stockholders' EquityP570,000P600,000Total Liabilities and Stockholders' EquityP905,000P920,000REQUIRED:Compute the following ratios and measurements for 2020:a. Amount of working capital.b. Current ratioc. Acid-test (Quick) Ratiod. Cash flow from Operations to Current Liabilitiesė. inventory Turnoverf. Rate of Gross Profit on sales| The data shown below were obtained from the financial records of the BST Corporationfor the year ended December 31, 2020.Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net SalesP1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019P250,000Purchases720,000Total Goods AvailableP970,000Inventory220,000750,000Gross Margin on SalesP 250,000Selling and Administrative (includingDepreciation of P20,000)125,000Net Income before TaxP 125,000Provision for Income Tax35,000Net Income for the YearP90,000Retained Earnings, beginning130,000TotalP220,000Dividends Paid30,000Retained Earnings, December 31, 2020P190,000Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020ASSETS20192020Current Assets:

Answered: Compute the following ratios and…

Compute the following ratios and measurement for 2020 a. Rate of return on invested capital b. Cash flow from operations to total liabilities c. Ratio of stockholders' equity to total liabilities

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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