FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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24 – 27 You are requested to reconstruct accounts of Angel Trading for analysis.
The following data were available to you:
Gross margin for 2019 amounts.……………. P800,000
Beginning balance of Merchandise Inventory.. 280,000
Long-term liabilities consisted of bonds
Payable with interest rate of………. 15%
Total
Gross margin ratio ...........................………… 40%
Debt to equity ratio ........................…………. 0.6 : 1
Times interest is earned …………… ………. 8
Quick ratio ....................................…………… 1.5 :1
Ratio of operating expense to sales...………. 25%
Inventory Turnover ………………………… 5
- The operating income for 2019 was
a. P 487,500 b. P 300,000 c. P 500,000 d. P 250,000
- The bonds payable was
a. P 487,500 b. P 300,000 c. P 125,000 d. P 250,000
- Total current liabilities would amount to
a. P375,000 b. P487,500 c. P125,000 d. P250,000
27.Total current assets would amount to
a. P187,500 b. P387,500 c. P467,500 d. P427,500
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