XYZ Corporation had the following data in 2022 below: Total assets = P300,000 Gross profit margin = 25% Quick ratio = 0.80 x Bond paya
XYZ Corporation had the following data in 2022 below: Total assets = P300,000 Gross profit margin = 25% Quick ratio = 0.80 x Bond paya
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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XYZ Corporation had the following data in 2022 below:
Total assets = P300,000
Gross profit margin = 25%
Quick ratio = 0.80 x
Bond payable = P60,000
Days sales outstanding = 36 days
Debt ratio = 50%
Times interest earned= 6 x
Inventory turnover = 5 x
Total assets turnover = 1.5 x
No. of days in a year = 360 days
Tax rate = 35%
Compute the interest expense.
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