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Selected data from  Cattleya Corporation's financial statements follow: Current ratio .................................................................... 2.0 Acid-test ratio .................................................................. 1.5 Current liabilities ............................................................. P120,000 Inventory turnover ........................................................... 8 Gross profit margin as a percentage of sales ................... 40% The company has no prepaid expenses and there were no changes in inventories during the year. The  Corporation's net sales for the year were: A) P800,000 B) P480,000 C) P1,200,000 D) P240,000

Selected data from  Cattleya Corporation's financial statements follow: Current ratio .................................................................... 2.0 Acid-test ratio .................................................................. 1.5 Current liabilities ............................................................. P120,000 Inventory turnover ........................................................... 8 Gross profit margin as a percentage of sales ................... 40% The company has no prepaid expenses and there were no changes in inventories during the year. The  Corporation's net sales for the year were: A) P800,000 B) P480,000 C) P1,200,000 D) P240,000

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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Selected data from  Cattleya Corporation's financial statements follow:

Current ratio .................................................................... 2.0

Acid-test ratio .................................................................. 1.5

Current liabilities ............................................................. P120,000

Inventory turnover ........................................................... 8

Gross profit margin as a percentage of sales ................... 40%

The company has no prepaid expenses and there were no changes in inventories

during the year. The  Corporation's net sales for the year were:

  1. A) P800,000
  2. B) P480,000
  3. C) P1,200,000
  4. D) P240,000
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