Five Star Manufacturing Company Statement of Financial Position As of December 31, 20X4 P 20,000 Current Liabilities (10%) 30,000 Long-term liabilities (15%) 150,000 Total liabilities 200.000 P 400,000 Stockholders' equity 600.000 Total Liabilities & Owners' equity P1.000.000 Cash Marketable securities P 200,000 300,000 P 500,000 Accounts receivable Inventory Total current assets P 500,000 Net fixed assets Total assets P1.000.000 uring 20X4, the firm's earnings before interest and taxes were 20 percent of P800,000 in sales. The come tax rate is 34 percent. Fequired: Determine the level of working capital, net working capital and current ratio.
Five Star Manufacturing Company Statement of Financial Position As of December 31, 20X4 P 20,000 Current Liabilities (10%) 30,000 Long-term liabilities (15%) 150,000 Total liabilities 200.000 P 400,000 Stockholders' equity 600.000 Total Liabilities & Owners' equity P1.000.000 Cash Marketable securities P 200,000 300,000 P 500,000 Accounts receivable Inventory Total current assets P 500,000 Net fixed assets Total assets P1.000.000 uring 20X4, the firm's earnings before interest and taxes were 20 percent of P800,000 in sales. The come tax rate is 34 percent. Fequired: Determine the level of working capital, net working capital and current ratio.
Chapter2: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 15SP
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