e following ratios and other data pertain to the financial statements of the Bulacan Company for the year ended December 3 1, 2013. Current ratio 1.75 to 1 Acid-test ratio 1.27 to 1 Working capital P33,000 Fixed assets to equity ratio 0.625 to 1 Inventory turnover (based on cost of closing inventory) 4X Gross profit percentage
Reconstruction of Statement Using Ratios
The following ratios and other data pertain to the financial statements of the Bulacan Company for the year ended December 3 1, 2013.
Acid-test ratio 1.27 to 1
Fixed assets to equity ratio 0.625 to 1
Inventory turnover (based on cost of closing inventory) 4X
Gross profit percentage 40%
Earnings per share P0.50
Average age of outstanding
(based on calendar year of 365 days) 73 days
Share capital outstanding 20,000 no par value shares
Earnings for the year as a percentage of share capital 25%
The company has no prepaid expenses, deferred, intangible assets or long-term liabilities.
Required:
Reconstruct in as much detail as is possible the company's statement of financial position and income statement for the year ended December 31, 2013, show supporting computations in good form
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