What is the Asset Turnover Ratio in 2020?

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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What is the Asset Turnover Ratio in 2020

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31
Note
2020
2019
ASSETS
Current Assets
Cash and cash equivalents
P350,824,146
P853,266,354
Trade and other receivables
104,404,733
83,566,374
Due from related parties
15
114,745,318
139,903,014
35,011,152
110,171,602
37,934,520
778,249,167
Merchandise inventories
49,907,654
Deposits and advance rentals
Other current assets
102,516,218
13,685,549
23
8
Total Current Assets
1,217,687,467
Noncurrent Assets
Unamortized input value-added tax (VAT)
Investment property
Property and equipment
Right-of-use (ROU) assets
1,791,459
126,875,050
237,782,743
982,788
222,786,889
115,194,610
10
23
80,874,880
35,086,878
213,603,422
69,777,537
Advances to contractors
10
Intangible assets
11
214,385,788
Net deferred tax assets
24
25,375,831
Total Noncurrent Assets
765,791,969
578,725,906
P1,544,041,136
P1,796,413,373
LIABILITIES AND EQUITY
Current Liabilities
Trade and other payables
Current portion of:
Notes payable
Mortgage payable
12
P55,499,779
P136,017,618
138,922,678
2,695,005
21,101,793
13
115,834,240
14
2,321,815
Lease liabilities
23
27,980,841
Due to related parties
Income tax payable
15
663,821
10,079,093
228,298,348
26,732,814
Total Current Liabilities
309,551,149
December 31
Note
2020
2019
Noncurrent Liabilities
Noncurrent portion of:
Notes payable
Mortgage payable
Lease liabilities
13
R-
P75,269,897
14
1,204,446
68,119,511
8,168,926
77,492,883
305,791,231
2,348,845
23
92,241,490
Retirement benefits liability
16
5,407,430
Total Noncurrent Liabilities
175,267,662
Total Liabilities
484,818,811
Equity
Capital stock
Additional paid-in capital
Retained earnings
Other equity reserves
Other comprehensive loss
17
213,368,000
777,837,044
213,368,000
17
777,837,044
196,706,537
266,111,391
4
51,252,779
55,192,582
(914,455)
1,238,249,905
16
(914,455)
Total Equity
1,311,594,562
P1,544,041,136 P1,796,413,373
Transcribed Image Text:CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31 Note 2020 2019 ASSETS Current Assets Cash and cash equivalents P350,824,146 P853,266,354 Trade and other receivables 104,404,733 83,566,374 Due from related parties 15 114,745,318 139,903,014 35,011,152 110,171,602 37,934,520 778,249,167 Merchandise inventories 49,907,654 Deposits and advance rentals Other current assets 102,516,218 13,685,549 23 8 Total Current Assets 1,217,687,467 Noncurrent Assets Unamortized input value-added tax (VAT) Investment property Property and equipment Right-of-use (ROU) assets 1,791,459 126,875,050 237,782,743 982,788 222,786,889 115,194,610 10 23 80,874,880 35,086,878 213,603,422 69,777,537 Advances to contractors 10 Intangible assets 11 214,385,788 Net deferred tax assets 24 25,375,831 Total Noncurrent Assets 765,791,969 578,725,906 P1,544,041,136 P1,796,413,373 LIABILITIES AND EQUITY Current Liabilities Trade and other payables Current portion of: Notes payable Mortgage payable 12 P55,499,779 P136,017,618 138,922,678 2,695,005 21,101,793 13 115,834,240 14 2,321,815 Lease liabilities 23 27,980,841 Due to related parties Income tax payable 15 663,821 10,079,093 228,298,348 26,732,814 Total Current Liabilities 309,551,149 December 31 Note 2020 2019 Noncurrent Liabilities Noncurrent portion of: Notes payable Mortgage payable Lease liabilities 13 R- P75,269,897 14 1,204,446 68,119,511 8,168,926 77,492,883 305,791,231 2,348,845 23 92,241,490 Retirement benefits liability 16 5,407,430 Total Noncurrent Liabilities 175,267,662 Total Liabilities 484,818,811 Equity Capital stock Additional paid-in capital Retained earnings Other equity reserves Other comprehensive loss 17 213,368,000 777,837,044 213,368,000 17 777,837,044 196,706,537 266,111,391 4 51,252,779 55,192,582 (914,455) 1,238,249,905 16 (914,455) Total Equity 1,311,594,562 P1,544,041,136 P1,796,413,373
Years Ended December 31
Note
2020
2019
2018
REVENUE
18
P891,847,222 P1,945,184,563 P1,579,205,736
DIRECT COSTS
19
(356,478,659) (814,396,877) (665,367,430)
GROSS PROFIT
535,368,563 1,130,787,686
913,838,306
SELLING AND DISTRIBUTION EXPENSES
20
(493,018,940)
(772,051,259) (635,395,313)
GENERAL AND ADMINISTRATIVE EXPENSES
21
(121,155,301)
(182,220,088)
(131,451,739)
INTEREST EXPENSE
13
(20,658,602)
(38,664,963)
(16,065,157)
OTHER INCOME – Net
22
26,788,920
7,890,994
2,556,365
GAIN FROM BARGAIN PURCHASE
4
6,436,907
INCOME (LOSS) BEFORE INCOME TAX
(72,675,360)
145,742,370
139,919,369
PROVISION FOR (BENEFIT FROM) INCOME TAX
24
Current
19,794,400
(44,401,706)
44,884,664
43,339,450
(20,669,486)
24,215,178
Deferred
(3,723,588)
(24,607,306)
39,615,862
NET INCOME (LOSS)
(48,068,054)
121,527,192
100,303,507
OTHER COMPREHENSIVE LOSS
Item not to be reclassified to profit or loss
Remeasurement loss on retirement benefits
liability (net of deferred income tax)
16
(868,167)
TOTAL COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO THE PARENT COMPANY
(248,068,054) P120,659,025
P100,303,507
Basic and Diluted Earnings (Loss) per Share
25
(P0.0225)
PO.0739
PO.0627
See accompanying Notes to Consolidated Financial Statements.
: Revenue
This account consists of:
Note
2020
2019
2018
Net sales
P872,989,411
13,204,275
5,653,536
P1,904,664,106
P1,533,709,139
Franchise fees
23
32,956,171
36,055,210
Rental income
23
7,564,286
9,441,387
P891,847,222 P1,945,184,563
P1,579,205,736
The Group recognizes revenue from sales of goods and services upon delivery to customers or at a
point in time when the Group has no more obligations that could affect the acceptance of goods by
the customers.
Details of the Group's revenue based on geographical markets are as follows:
Note
2020
2019
2018
Sale of goods:
Luzon
P663,801,125
163,309,752
45,878,534
P1,534,613,722 P1,267,576,409
273,436,992
96,613,392
Visayas
189,588,562
Mindanao
76,544,168
872,989,411
1,904,664,106
1,533,709,139
Franchise fees
23
32,956,171
P1,937,620,277 P1,569,764,349
13,204,275
36,055,210
P886,193,686
. Direct Costs
This account consists of:
Note
2020
2019
2018
Direct materials used
7
2305,734,523
P726,901,305
P590,119,121
Salaries, wages and other
employee benefits
Depreciation and amortization
30,967,806
62,214,295
54,426,242
1,793,406
1,703,580
10
15,296,270
17,449,482
2,362,716
2,117,344
Taxes and licenses
1,834,302
Utilities
5,997,493
5,554,421
Rental
23
11,770,660
2356,478,659
P814,396,877
P665,367,430
Salaries, wages and other employee benefits pertain to outside services and salaries and wages of
personnel performing tasks directly related to the production of merchandise inventories.
Transcribed Image Text:Years Ended December 31 Note 2020 2019 2018 REVENUE 18 P891,847,222 P1,945,184,563 P1,579,205,736 DIRECT COSTS 19 (356,478,659) (814,396,877) (665,367,430) GROSS PROFIT 535,368,563 1,130,787,686 913,838,306 SELLING AND DISTRIBUTION EXPENSES 20 (493,018,940) (772,051,259) (635,395,313) GENERAL AND ADMINISTRATIVE EXPENSES 21 (121,155,301) (182,220,088) (131,451,739) INTEREST EXPENSE 13 (20,658,602) (38,664,963) (16,065,157) OTHER INCOME – Net 22 26,788,920 7,890,994 2,556,365 GAIN FROM BARGAIN PURCHASE 4 6,436,907 INCOME (LOSS) BEFORE INCOME TAX (72,675,360) 145,742,370 139,919,369 PROVISION FOR (BENEFIT FROM) INCOME TAX 24 Current 19,794,400 (44,401,706) 44,884,664 43,339,450 (20,669,486) 24,215,178 Deferred (3,723,588) (24,607,306) 39,615,862 NET INCOME (LOSS) (48,068,054) 121,527,192 100,303,507 OTHER COMPREHENSIVE LOSS Item not to be reclassified to profit or loss Remeasurement loss on retirement benefits liability (net of deferred income tax) 16 (868,167) TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE PARENT COMPANY (248,068,054) P120,659,025 P100,303,507 Basic and Diluted Earnings (Loss) per Share 25 (P0.0225) PO.0739 PO.0627 See accompanying Notes to Consolidated Financial Statements. : Revenue This account consists of: Note 2020 2019 2018 Net sales P872,989,411 13,204,275 5,653,536 P1,904,664,106 P1,533,709,139 Franchise fees 23 32,956,171 36,055,210 Rental income 23 7,564,286 9,441,387 P891,847,222 P1,945,184,563 P1,579,205,736 The Group recognizes revenue from sales of goods and services upon delivery to customers or at a point in time when the Group has no more obligations that could affect the acceptance of goods by the customers. Details of the Group's revenue based on geographical markets are as follows: Note 2020 2019 2018 Sale of goods: Luzon P663,801,125 163,309,752 45,878,534 P1,534,613,722 P1,267,576,409 273,436,992 96,613,392 Visayas 189,588,562 Mindanao 76,544,168 872,989,411 1,904,664,106 1,533,709,139 Franchise fees 23 32,956,171 P1,937,620,277 P1,569,764,349 13,204,275 36,055,210 P886,193,686 . Direct Costs This account consists of: Note 2020 2019 2018 Direct materials used 7 2305,734,523 P726,901,305 P590,119,121 Salaries, wages and other employee benefits Depreciation and amortization 30,967,806 62,214,295 54,426,242 1,793,406 1,703,580 10 15,296,270 17,449,482 2,362,716 2,117,344 Taxes and licenses 1,834,302 Utilities 5,997,493 5,554,421 Rental 23 11,770,660 2356,478,659 P814,396,877 P665,367,430 Salaries, wages and other employee benefits pertain to outside services and salaries and wages of personnel performing tasks directly related to the production of merchandise inventories.
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