4,5,6 Can You Solve the Problem?Directions: Read and analyze the problemthen prepare the recessary requirements.Veery Beery CompanyStatement of Financial PositionFor the Year-ended December 312019P 400,0005,600,0001,480,0001,380,0008,860,00010,860,0006,800,000P 17,660,000P 6,600,0002020180,0001,800,0001,060,0001,640,0004,680,000CashShort-term investmentsAccounts receivableInventoryOther Cunent AssetsPTotal Cunent AssetsEquipmentTotal AssetsAccounts PayableNotes Payable - long temOwner, Capital|Total liabilities and equity5,040,0005,200,000P 10,240,000P 2,620,0002,120,0005,500,000P 10,240,0002,460,0008,600,000P 17,660,000Veery Beery CompanyStatement of Comprehensive IncomeFor the Year-ended December 31SalesCost of Goods SoldGIDss ProfitOperating Expenses| Operating IncomeInterest ExpenseNet Income2019P 10,040,0005,680,0004,360,0001,160,0003,200,000100,000P 3,1000,0002020P 8,760,0005,860,0002,800,0001,680,0001,220,00028,000P 1,192,000Requirements: Compute for the following financial ratios.1. Current ratioQuick ratio3. Working capital4. Inventory tumover5. Days of inventory (use 365 days)6. Accounts receivable tumover (assume all sales are on credit)7. Days of receivable (use 365 days)8. Debt ratio9. Equity ratio10. Debt-to-equity ratio11. Gross profit ratio12. Net profit ratio13. Retum on assets14. Retum on equity

Inventory turnover ratio = Cost of goods sold/((Opening inventory + Closing inventory)/2)

Answered: Inventory tumover

Business

Accounting

Inventory tumover

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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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

4,5,6

Can You Solve the Problem?
Directions: Read and analyze the problemthen prepare the recessary requirements.
Veery Beery Company
Statement of Financial Position
For the Year-ended December 31
2019
P 400,000
5,600,000
1,480,000
1,380,000
8,860,000
10,860,000
6,800,000
P 17,660,000
P 6,600,000
2020
180,000
1,800,000
1,060,000
1,640,000
4,680,000
Cash
Short-term investments
Accounts receivable
Inventory
Other Cunent Assets
P
Total Cunent Assets
Equipment
Total Assets
Accounts Payable
Notes Payable - long tem
Owner, Capital
|Total liabilities and equity
5,040,000
5,200,000
P 10,240,000
P 2,620,000
2,120,000
5,500,000
P 10,240,000
2,460,000
8,600,000
P 17,660,000
Veery Beery Company
Statement of Comprehensive Income
For the Year-ended December 31
Sales
Cost of Goods Sold
GIDss Profit
Operating Expenses
| Operating Income
Interest Expense
Net Income
2019
P 10,040,000
5,680,000
4,360,000
1,160,000
3,200,000
100,000
P 3,1000,000
2020
P 8,760,000
5,860,000
2,800,000
1,680,000
1,220,000
28,000
P 1,192,000
Requirements: Compute for the following financial ratios.
1. Current ratio
Quick ratio
3. Working capital
4. Inventory tumover
5. Days of inventory (use 365 days)
6. Accounts receivable tumover (assume all sales are on credit)
7. Days of receivable (use 365 days)
8. Debt ratio
9. Equity ratio
10. Debt-to-equity ratio
11. Gross profit ratio
12. Net profit ratio
13. Retum on assets
14. Retum on equity

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