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Required: 1. Compute the following ratios as of the end of 1990 or for the vear ended December 31, 1990, whicheyer is appropriate: 4. Days' credit sales in accounts receivable S. Inventory.turnover 6. Days' sales in inventory

Required: 1. Compute the following ratios as of the end of 1990 or for the vear ended December 31, 1990, whicheyer is appropriate: 4. Days' credit sales in accounts receivable S. Inventory.turnover 6. Days' sales in inventory

FINANCIAL ACCOUNTING
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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Helping tags: Accounting management . . . . will UPVOTE, Just Pls help me answer #4 to #6 and show complete solutions. Thanks.
PROBLEMS P12-1. Company are given below: Financial Statoments Analyais. Financial stataments for the RTS RTS COMPANY BALANCE SHEETS AS OF DECEMBER 31 Assets 1990 1989 Cash Accounts receivable Inventory 45,000 212,508 155,000 50,000 207,500 140,000 Total current assets Plant and equipment Accumulated depreciation P 412,500 1,885,000 480,000) P 397,500 1,662,500 75,000) Total assets P1.817.500 P1.685.000 1990 1989 Equities Accounts payable Accrued expenses 55,000 112,500 47,500 110,000 Total current liabilities Lang-term debt P 167,500 250,000 P 157,500 237 500 Total liabilities Coon stock, no par value Retained eorninge P 417,500 1,000,000 400,000 P 395,000 1,000,000 290,000 P1.817.500 P1.685.000 Total equities
Transcribed Image Text:PROBLEMS P12-1. Company are given below: Financial Statoments Analyais. Financial stataments for the RTS RTS COMPANY BALANCE SHEETS AS OF DECEMBER 31 Assets 1990 1989 Cash Accounts receivable Inventory 45,000 212,508 155,000 50,000 207,500 140,000 Total current assets Plant and equipment Accumulated depreciation P 412,500 1,885,000 480,000) P 397,500 1,662,500 75,000) Total assets P1.817.500 P1.685.000 1990 1989 Equities Accounts payable Accrued expenses 55,000 112,500 47,500 110,000 Total current liabilities Lang-term debt P 167,500 250,000 P 157,500 237 500 Total liabilities Coon stock, no par value Retained eorninge P 417,500 1,000,000 400,000 P 395,000 1,000,000 290,000 P1.817.500 P1.685.000 Total equities
RTS COMPANY Income Statement for 1990 10 eiob feoy 634 Part 2/Systems & Techniques for Analysis, Planning & Control Cha Sales Cost of goods sold P2,162,500 1,206,250 P12 Han 88 Gross profit Depreciation Other operating expenses P 956,250 000,er 088,2 000, 105,000 533,750 00A 638,750 İncome before interest and taxes No CO Interest expense P 317,500 17,500 Income before taxes Income taxes at 35% rate P 300,000 105,000 Net income 195.000 Dur ing 1990 the firm declared and paid cash dividends of P85,000. Ib were 50,000 shares of common stock outstanding throughout the year, macket price of the stock at year end was P16.25. All sales and purcha are on credit. Required: 1. Compute the following ratios as of the end of 1990 or for the ven ended December 31, 1990, whicheyer is appropriate: ara 4. Days' credit sales in accounts receivable 5. Inventory.turnover 6. Days' sales in inventory
Transcribed Image Text:RTS COMPANY Income Statement for 1990 10 eiob feoy 634 Part 2/Systems & Techniques for Analysis, Planning & Control Cha Sales Cost of goods sold P2,162,500 1,206,250 P12 Han 88 Gross profit Depreciation Other operating expenses P 956,250 000,er 088,2 000, 105,000 533,750 00A 638,750 İncome before interest and taxes No CO Interest expense P 317,500 17,500 Income before taxes Income taxes at 35% rate P 300,000 105,000 Net income 195.000 Dur ing 1990 the firm declared and paid cash dividends of P85,000. Ib were 50,000 shares of common stock outstanding throughout the year, macket price of the stock at year end was P16.25. All sales and purcha are on credit. Required: 1. Compute the following ratios as of the end of 1990 or for the ven ended December 31, 1990, whicheyer is appropriate: ara 4. Days' credit sales in accounts receivable 5. Inventory.turnover 6. Days' sales in inventory
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