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- Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and state mcnt of cash flows: Long-term debt S 4,400 Interest expense S 398 Total liabilities 8,972 Net income 559 Total assets 38,775 Interest payments 432 Total equity 29,803 Cash flows from operations 1.015 Operating income 1.223 Income tax expenses 266 Income taxes paid 150 Required: Calculate the following ratios for Rising Stars: (a) debt to equity, (b) debt to total assets, (c) long-term debt to equity, (d) times interest earned (accrual basis), and (e) times interest earned (cash basis). (Note: Round answers to three decimal places.) CONCEPTUAL CONNECTION Interpret these results. 3.What does it mean if a bond is callableZeta Company reported sales revenue of P4,600,000 in the income statement for the year ended December 31, 2020. The entity wrote off uncollectible accounts totaling P50,000 during the current year. 2019 2020 Accounts receivable 1,000,000 1,300,000 Allowance for uncollectible accounts 60,000 110,000 Advances from customers 200,000 300.000 Under cash basis, what amount should be reported as sales for the current year? 4,400,000 4,350,000 4,300,000 4,250,000Meta Company reported sales revenue of P4,600,000 in the income statement for the year ended December 31, 2019. The entity wrote of uncollectible accounts tolling P20,000 during the current year 2018 2019 Accounts receivable 1,000,000 1,300,000 Allowance for uncollectible accounts 60,000 110,000 42. Under Cash basis, what amount should be reported as sales for the current year? а. 4,900,000 b. 4,350,000 c. 4,300,000 d. 4,280,000 43. What amount of bad debts are recognized for the current year? а. 60,000 b. 70,000 80,000 d. 110,000 С.
- V Company reported sales revenue of P4,600,000 in the income statement for the year ended December 31, 2019. The entity wrote of uncollectible accounts tolling P20,000 during the current year 2018 2019 Accounts receivable 1,000,000 1,300,000 Allowance for uncollectible accounts 60,000 110,000 69. Under Cash basis, what amount should be reported as sales for the current year? а. 4,900,000 b. 4,350,000 c. 4,300,000 d. 4,280,000 70. What amount of bad debts are recognized for the current year? 60,000 b. 70,000 a. c. 80,000 d. 110,000RM Company disclosed the following information on December 31, 2021: Accrued rent expense Share dividends payable Accounts receivable, after deducting credit balances of customers accounts amounting to P42, 500 Estimated premium liability Cash in bank, net of bank overdraft of P22,650 54,000 750,000 179,300 65,800 481,900 215,500 Deferred tax liability Accounts payable, net of debit balances in suppliers' accounts amounting to P8,310 Unearned interest income 95,420 225,000 Mortgage payable, issued on March 1, 2012, maturing after 10 years Notes payable due to bank, 12% interest bearing note payable yearly, issued on August 31, 2021, maturing on August 31, 2022 Cash dividends payable SSS payable Serial bonds payable in 5 yearly installment of P250,000 payable every October 31 Estimated damages because of a supposed unsatisfactory performance on a contract, a possible obligation Income tax payable Notes payable 1,500,000 1,000,000 520,000 57,100 1,250,000 75,000 138,500 460,000…The data depicted in the table below were extracted from the annual financial reports of WBE enterprises for the 2021 and 2022 financial years. If all purchases are on credit, calculate the creditors payment period of WBE enterprises for the 2022 financial year. Sales (80% credit sales) Cost of sales Inventories Accounts receivable Accounts payable Cash and cash equivalents Other current liabilities OA. 214 days OB. 163 days OC. 66 days OD. 168 days 2022 R 480 000 264 000 270 000 204 000 177 000 45 750 82 500 2021 R 375 000 192 000 243 000 183 000 165 000 27 300 58 500
- DND Inc.'s December 31,2021 statement of financial position reported the following current assets: Cash, excluding payroll fund of P200,000 Accounts receivable Inventory Deferred tax assets including prepaid tax of P100,000 P 4,300,000 7,500,000 4,000,000 1,200,000 P17,000,000 An analysis of the accounts receivable disclosed that accounts receivable comprised the following: Trade accounts receivable Allowance for doubtful accounts Selling price of DND's unsold goods sent to Tar Inc. on consignment P 5,000,000 (500,000) at 150% of cost and excluded from DND's ending inventory 3,000,000 P7,500,000 On December 31,2021, what amount should be reported as total current assets?The Records of Finance Sales Corporation showed the following data for the year 2021 as follows; Interest Income 150,000 Income tax expense Salesperson's commission Sales returns and allowances 828,000 300,000 195,000 Freight In Purchase Returns and Allowances Sales Salaries Depreciation-Delivery Truck 187,500 135,000 525,000 112,500 9,375,000 Sales Purchase discounts 90,000 Merchandise Inventory, December 31 4,350,000 Rent Income 225,000 Depreciation- Office Equipment 112,500 Dividend Income 150,000 Doubtful Accounts 112,500 90,000 Freight out Sales discounts 105,000 Purchases 5,475,000 Office Salaries 675,000 75,000 Loss on sale of Equipment Depreciation -Building Merchandise Inventory, January 1 Depreciation-store furniture 300,000 3,375,000 75,000 REQUIRED: PREPARE A STATEMENT OF COMPREHENSIVE INCOME IN A PRESCRIBED FORMAT FOR THE YEAR USING THE FOLLOWING METHODS: A) Nature of expense method with supporting notes with separate computation. B) Function of expense method with…Selected information from the comparative financial statements of AppleVerse Company for the year ended December 31 appears below: 2018 2017 Php Php Accounts receivable (net) 175,000 200,000 Inventory 130,000 150,000 Total assets 1,100,000 800,000 Current liabilities 140,000 110,000 Long-term debt 410,000 300,000 Net credit sales 800,000 700,000 Cost of goods sold 600,000 530.000 Interest expense 40.000 25,000 Income tax expense 60.000 29,000 Net income 150.000 85,000 Net cash provided by operating 220,000 135,000 activities Compute for the Receivables Turnover for 2018. O 2.13 O 4.27 O 5.95 O 3.23
- The following balances are extracted from the records of VKS Corporation as of December 31, 2021:· Commercial savings account, DVD- P1,500,000· Commercial checking account, DVD- P1,800,000· Travel advances for executive travel for the 1st quarter of 2022 (employee to reimburse through salary deduction)- P375,000· Cash fund for retirement of long-term debt- P2,000,000· Petty cash fund- P20,000· I.O.U. from an officer- P50,000· Bank overdraft, BPI- P450,000· Certificates of deposits, maturity of 120 days acquired on December 1, 2021- P3,000,000· Check received from customer dated January 2, 2022- P175,000· Maintaining balance at DVD to ensure future credit availability- P200,000· Currency and coin on hand not yet deposited - P25,000 How much will be reported as cash and cash equivalents on December 31, 2021?The following are the financial statement JNC Ltd. for the year ended 31 March 2020: JNC Ltd. Income statement For the year ended 31 March 2020 $”M” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) 150.00 Tax (70.00) Profit after tax 80.00 JNC Ltd. Statement of financial position as at 31 March 2020 2019 $”M” $”M” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital (10 million ordinary shares of $ 10 per value) 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25…Sheridan Corporation had the following 2020 income statement. Revenues $95,000Expenses 63,000 $32,000 In 2020, Sheridan had the following activity in selected accounts. Accounts Receivable1/1/20 20,000Revenues 95,00012/31/20 22,100 Write-offs 900Collections 92,000 Allowance for Doubtful AccountsWrite-offs 900 1/1/20 1,200Bad debt expense 1,90012/31/20 2,200 (a) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the direct method. Sheridan CorporationStatement of Cash Flows-Direct Method (Partial) $ $ (b) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Sheridan CorporationStatement of…