EXERCISES: 1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets P 160,000 240,000 130,000 P 180,000 300,000 130,000 Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant and equipment, net 60,000 590,000 910,000 P 1.500,000 P1,540,000 60,000 670,000 870,000 Total Assets Current Liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities P 150,000 30,000 90.000 270,000 190,000 460,000 P 180,000 30,000 90,000 300,000 220,000 520,000 Stockholders' Equity: Preferred stock, P100 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity AB 200,000 100,000 140,000 _600,000 1,040,000 P 1,500,000 P1,540,000 200,000 100,000 140,000 580,000 1,020,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 P 1,240,000 (820,000) 420,000 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes |(290,000) 130,000 (30,000) 100,000 (30,000) P 70,000 Income taxes (30%) Net income Required: Compute the following for 2020: a. Working capital.
EXERCISES: 1. XYZ Corporation's most recent balance sheet and income statement appear below: XYZ Corporation Statement of Financial Position As of December 31, 2020 2019 Current Assets P 160,000 240,000 130,000 P 180,000 300,000 130,000 Cash Accounts receivable Inventory Prepaid expenses Total current assets Plant and equipment, net 60,000 590,000 910,000 P 1.500,000 P1,540,000 60,000 670,000 870,000 Total Assets Current Liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total Liabilities P 150,000 30,000 90.000 270,000 190,000 460,000 P 180,000 30,000 90,000 300,000 220,000 520,000 Stockholders' Equity: Preferred stock, P100 par value, 5% Common stock, P10 par value Additional paid-in-capital – common Retained earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity AB 200,000 100,000 140,000 _600,000 1,040,000 P 1,500,000 P1,540,000 200,000 100,000 140,000 580,000 1,020,000 XYZ Corporation Income Statement For the Year Ended December 31, 2020 P 1,240,000 (820,000) 420,000 Sales (all on account) Cost of goods sold Gross Margin Selling and administrative expense Net operating income Interest expense Net income before taxes |(290,000) 130,000 (30,000) 100,000 (30,000) P 70,000 Income taxes (30%) Net income Required: Compute the following for 2020: a. Working capital.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pls answer all the questions with solutions
![EXERCISES:
1. XYZ Corporation's most recent balance sheet and income statement appear below:
XYZ Corporation
Statement of Financial Position
As of December 31,
2020
2019
Current Assets
P 180,000
300,000
130,000
| 60,000
670,000
870,000
P 1,500,000 P1.,540,000
P 160,000
240,000
130,000
Cash
Accounts receivable
Inventory
Prepaid expenses
Total current assets
60,000
590,000
910,000
Plant and equipment, net
Total Assets
Current Liabilities:
P 150,000
30,000
90,000
270,000
190,000
460,000
P 180,000
30,000
90,000
300,000
220,000
520,000
Accounts payable
Accrued liabilities
Notes payable, short term
Total current liabilities
Bonds payable
Total Liabilities
Stockholders' Equity:
Preferred stock, P100 par value, 5%
Common stock, P10 par value
Additional paid-in-capital – common
Retained earnings
Total Stockholders' Equity
Total Liabilities & Stockholders' Equity
AB
200,000
100,000
140,000
600,000
1,040,000
P 1,500,000 PI1,540,000
200,000
100,000
140,000
580,000
1,020,000
XYZ Corporation
Income Statement
For the Year Ended December 31, 2020
Sales (all on account)
Cost of goods sold
Gross Margin
Selling and administrative expense
Net operating income
Interest expense
Net income before taxes
P 1,240,000
(820,000)
420,000
|(290,000)
130,000
|(30,000)
100,000
(30,000)
P 70,000
Income taxes (30%)
Net income
Required:
Compute the following for 2020:
a. Working capital.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb48f7dbf-25ae-4b1a-8413-abee33e493c0%2F13ca684a-d2c7-4ef4-a300-b9d0ec74516e%2F5f7957o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXERCISES:
1. XYZ Corporation's most recent balance sheet and income statement appear below:
XYZ Corporation
Statement of Financial Position
As of December 31,
2020
2019
Current Assets
P 180,000
300,000
130,000
| 60,000
670,000
870,000
P 1,500,000 P1.,540,000
P 160,000
240,000
130,000
Cash
Accounts receivable
Inventory
Prepaid expenses
Total current assets
60,000
590,000
910,000
Plant and equipment, net
Total Assets
Current Liabilities:
P 150,000
30,000
90,000
270,000
190,000
460,000
P 180,000
30,000
90,000
300,000
220,000
520,000
Accounts payable
Accrued liabilities
Notes payable, short term
Total current liabilities
Bonds payable
Total Liabilities
Stockholders' Equity:
Preferred stock, P100 par value, 5%
Common stock, P10 par value
Additional paid-in-capital – common
Retained earnings
Total Stockholders' Equity
Total Liabilities & Stockholders' Equity
AB
200,000
100,000
140,000
600,000
1,040,000
P 1,500,000 PI1,540,000
200,000
100,000
140,000
580,000
1,020,000
XYZ Corporation
Income Statement
For the Year Ended December 31, 2020
Sales (all on account)
Cost of goods sold
Gross Margin
Selling and administrative expense
Net operating income
Interest expense
Net income before taxes
P 1,240,000
(820,000)
420,000
|(290,000)
130,000
|(30,000)
100,000
(30,000)
P 70,000
Income taxes (30%)
Net income
Required:
Compute the following for 2020:
a. Working capital.
![b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
2. Selected data from the Company are presented below:
Total assets
Average assets
Net income
P1,600,000
1,750,000
245,000
Net sales
Average common stockholders' equity
Net cash provided by operating activities
1,225,000
1,000,000
294,000
Calculate the following profitability ratios.
a. Profit margin
b. Asset turnover
c. Return on assets
d. Return on common stockholders' equity
ABAY
e. Cash return on sales
3. The Corporation's net operating income last year was P103,000; its interest expense was
P17,000; its total stockholders' equity was P1,260,000; and its total liabilities were P380,000.
Compute the following:
a. Times interest eamed.
b. Debt-to-equity ratio.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb48f7dbf-25ae-4b1a-8413-abee33e493c0%2F13ca684a-d2c7-4ef4-a300-b9d0ec74516e%2Fsyif46w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
2. Selected data from the Company are presented below:
Total assets
Average assets
Net income
P1,600,000
1,750,000
245,000
Net sales
Average common stockholders' equity
Net cash provided by operating activities
1,225,000
1,000,000
294,000
Calculate the following profitability ratios.
a. Profit margin
b. Asset turnover
c. Return on assets
d. Return on common stockholders' equity
ABAY
e. Cash return on sales
3. The Corporation's net operating income last year was P103,000; its interest expense was
P17,000; its total stockholders' equity was P1,260,000; and its total liabilities were P380,000.
Compute the following:
a. Times interest eamed.
b. Debt-to-equity ratio.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education