Statement of Financial Position June 30, 2020 Assets Current Assets Cash P 21,000.00 Accounts Receivables 160,000.00 Merchandise Inventory 300,000.00 Prepaid Expenses 9,000.00 Total Current Assets P 490,000.00 Property, Plant and Equipment 810,000.00 Total Assets P 1,300,000.00 Liabilities and Equity Liabilities: Current Liabilities P 200,000.00 Bonds Payable, 10% 300,000.00 Total Liabilities P 500,000.00 Equity: Ordinary Shares, P5 par value P 100,000.00 Retained Earnings 700,000.00 Total Equity 800,000.00 Total Liabilities and Equity P 1,300,00.00 Marina Company Income Statement For the month ended June 30, 2020 Sales P 2,100,000.00 Less: Cost of Goods Sold 1,260,000.00 Gross Margin P 840,000.00 Less: Operating Expenses 660,000.00 Net Operating Income P 180,000.00 Less: Interest Expenses 30,000.00 Net Income before Taxes P 150,000.00 Less: Income Taxes 45,000.00 Net Income P 105,000.00 Refer to the financial statements for Marina Company in the previous problem. Assess at the beginning of the year totaled P1,100,000, and the equity totaled P725,000. Required: Compute the following: 1. Return on total assets – Ms. Gailo 2. Return on ordinary shareholders’ equity – Ms. Galay
Marina Company
June 30, 2020
Assets
Current Assets
Cash P 21,000.00
Accounts Receivables 160,000.00
Merchandise Inventory 300,000.00
Prepaid Expenses 9,000.00
Total Current Assets P 490,000.00
Property, Plant and Equipment 810,000.00
Total Assets P 1,300,000.00
Liabilities and Equity
Liabilities:
Current Liabilities P 200,000.00
Bonds Payable, 10% 300,000.00
Total Liabilities P 500,000.00
Equity:
Ordinary Shares, P5 par value P 100,000.00
Total Equity 800,000.00
Total Liabilities and Equity P 1,300,00.00
Marina Company
Income Statement
For the month ended June 30, 2020
Sales P 2,100,000.00
Less: Cost of Goods Sold 1,260,000.00
Gross Margin P 840,000.00
Less: Operating Expenses 660,000.00
Net Operating Income P 180,000.00
Less: Interest Expenses 30,000.00
Net Income before Taxes P 150,000.00
Less: Income Taxes 45,000.00
Net Income P 105,000.00
Refer to the financial statements for Marina Company in the previous problem. Assess at the
beginning of the year totaled P1,100,000, and the equity totaled P725,000.
Required:
Compute the following:
1.
2. Return on ordinary shareholders’ equity – Ms. Galay
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