Compute the following ratios and measurements for 2020:1. Cash flow from Operations to Current Liabilities2. Rate of Return on invested capital3. Cash flow from Operations to Total Liabilities Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020ASSETS20192020Current Assets:P 85,000P 75,00025,000CashMarketable Securities25,000Trade Receivables, netInventory, at costPrepaid Expenses185,000245,000250,00015,000P550,000220,00010,000P585,000Total Current AssetsProperty and Other Assets:Equipment, netP340,000P320,000Other Assets15,00015,000Total Property and Other AssetsP355,000P335,000Total AssetsP905,000P920,000LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent Liabilities:Trade PayablesAccrued ExpensesP185,000P165,00020,00025,000Other Current Liabilities10,000P215,00010,000P200,000Total Current LiabilitiesLong-Term LiabilityMortgage PayableP120,000P120,000Stockholders' EquityCapital Stock, P100 parAdditional Paid-In CapitalRetained Earnings AppropriatedRetained Earnings UnappropriatedP300,000P300,00030,00030,00080,00080,000160,000190,000Total Stockholders' EquityP570,000P600,000Total Liabilities and Stockholders' EquityP905,000P920,000 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 Year90,000Retained Earnings, beginning130,000P 220,00030,000P 190,000TotalDividends PaidRetained Earnings, December 31, 2020

Financial analysis refers to the analysis of the financial statements by its users for making…

Answered: Compute the following ratios and…

Compute the following ratios and measurements for 2020: 1. Cash flow from Operations to Current Liabilities 2. Rate of Return on invested capital 3. Cash flow from Operations 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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