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solvency ratio

solvency ratio

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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use the following information given to compute for solvency ratio
Directions: Use the following information given by Aysid Wash and Wear Supplies to compute for Solvency Ratios. Cash P 400,000 Sales P 1,500,000 Accounts Receivable 700,000 500,000 Cost of Goods Sold 550,000 Gross Profit Inventory 800,000 850,000 Operating Expenses 300,000 Equipment Total Assets Operating income 500,000 Accounts Payable Interest Expense 50,000 Net Income P 450,000 Notes Payable Owner, Capital Total Liabilities and equity P 2,300,000 P 600,000 400,000 1,800,000 P 2,300,000
Transcribed Image Text:Directions: Use the following information given by Aysid Wash and Wear Supplies to compute for Solvency Ratios. Cash P 400,000 Sales P 1,500,000 Accounts Receivable 700,000 500,000 Cost of Goods Sold 550,000 Gross Profit Inventory 800,000 850,000 Operating Expenses 300,000 Equipment Total Assets Operating income 500,000 Accounts Payable Interest Expense 50,000 Net Income P 450,000 Notes Payable Owner, Capital Total Liabilities and equity P 2,300,000 P 600,000 400,000 1,800,000 P 2,300,000
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