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1. Current ratio 2. Quick ratio 3. Accounts receivable turnover 345-30

1. Current ratio 2. Quick ratio 3. Accounts receivable turnover 345-30

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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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: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
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
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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