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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Helping tags: Management accounting
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Will UPVOTE, just pls help me answer the problem and show complete solutions. Thanks.

Transcribed Image Text:PROBLEMS
P12-1.
Company are given below:
Financial Statoments Analyais. Financial stataments for the RTS
RTS COMPANY BALANCE SHEETS AS OF DECEMBER 31
Assets
1990
1989
Cash
Accounts receivable
Inventory
45,000
212,508
155,000
50,000
207,500
140,000
Total current assets
Plant and equipment
Accumulated depreciation
P 412,500
1,885,000
480,000)
P 397,500
1,662,500
75,000)
Total assets
P1.817.500
P1.685.000
1990
1989
Equities
Accounts payable
Accrued expenses
55,000
112,500
47,500
110,000
Total current liabilities
Lang-term debt
P 167,500
250,000
P 157,500
237 500
Total liabilities
Coon stock, no par value
Retained eorninge
P 417,500
1,000,000
400,000
P 395,000
1,000,000
290,000
P1.817.500
P1.685.000
Total equities

Transcribed Image Text:RTS COMPANY Incone Statement for 1990 T0 eiob Seoy
634 Part 2/Systems & Techniques for Analysis, Planning & Control
Ch
P12
Han
Sales
Cost of goods sold
P2,162,500
1,206,250
pta.o 32
Gross profit
Depreciation
Other operating expenses
P 956,250
000, era
O88,2
105,000
533,750
00A
003
P.
638,750
Ne
İncome before interest and taxes
v Interest expense
317,500
17,500
youl yd bertred 014 asoio Ided
Income before taxes
Income texes at 35% rate
P 300,000
105 000
Net income
P 195.000
During 1990 the firm declared and paid cash dividends of P85,000, 1.R
were 50,000 shares of common stock outstanding throughout the year. e
nacket price of the stock at year end was P16.25. All sales and purcha
are on credit.
Required:
1. Compute the following ratios as of the end of 1990 or for the vear
ended December 31, 1990, whicheyer is appropriate:
Current ratio
2. Quick ratio
3. Accounts receivable turnover
4. Days' credit sales in accounts receivable
5. Inventory turnover
6. Days' sales in inventory
7. Days' purchases in accounts payable
8. Gross profít ratio
9.
1.
raodsioe7geb badabuo
Return on sales
10.
Return on assets (ROA)
Return on equity (ROE)
12. Earnings per share (EPS)
13. Príce-earnings ratio (PE)
14. Dividend yield
15. Payout ratio
16. Debt ratio
17. Times interest earned
11.
oldoreg oiosod
amegotpe boUSoo
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