financial ratios?

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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REQUIRED: Compute for financial ratios?
Sample Company Statement of Financial Position as of December 31, 2014
ASSETS
LIABILITIES AND STOCKHOLDERS' EQUITY
Cash
P 120,000.00
Accounts Payable
P 70,000.00
Marketable Securities
P 35,000.00
P 55,000.00
Short-term notes
Accounts Receivable
P 45,000.00
Current Liabilities
P 125,000.00
Inventories
P 130,000.00
Long-term debt
P 2,700,000.00
Current Assets
P 330,000.00
P 2,825,000.00
Total Liabilities
Equipment
P 2,970,000.00
Common stock
P 500,000.00
Buildings
P 1,600,000.00
Retained earnings
P 1,575,000.00
Fixed Assets
P 4,570,000.00
Stockholders' equity
P 2,075,000.00
Total Assets
P 4,900,000.00
Total liabilities and equity
P 4,900,000.00
Sample Company Statement of Financial Performance for the Year Ended December 31, 2014
Sales Revenue
P 2,000,000.00
Cost of Sales/Service
P (1,300,000.00)
Gross Margin
P 700,000.00
Operating Expenes
P (199.000.00)
Operating Profit
P 501,000.00
Other Income
P 5,000.00
Other Expenses
P (2,800.00)
Net Income before Tax
P 503,200.00
Income Tax
P (150,960.00)
Net Income after Tax
P 352,240.00
Transcribed Image Text:Sample Company Statement of Financial Position as of December 31, 2014 ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Cash P 120,000.00 Accounts Payable P 70,000.00 Marketable Securities P 35,000.00 P 55,000.00 Short-term notes Accounts Receivable P 45,000.00 Current Liabilities P 125,000.00 Inventories P 130,000.00 Long-term debt P 2,700,000.00 Current Assets P 330,000.00 P 2,825,000.00 Total Liabilities Equipment P 2,970,000.00 Common stock P 500,000.00 Buildings P 1,600,000.00 Retained earnings P 1,575,000.00 Fixed Assets P 4,570,000.00 Stockholders' equity P 2,075,000.00 Total Assets P 4,900,000.00 Total liabilities and equity P 4,900,000.00 Sample Company Statement of Financial Performance for the Year Ended December 31, 2014 Sales Revenue P 2,000,000.00 Cost of Sales/Service P (1,300,000.00) Gross Margin P 700,000.00 Operating Expenes P (199.000.00) Operating Profit P 501,000.00 Other Income P 5,000.00 Other Expenses P (2,800.00) Net Income before Tax P 503,200.00 Income Tax P (150,960.00) Net Income after Tax P 352,240.00
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