FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following ratios and other data pertain to the financial statements of the
No Forever Company for the year ended December 31, 2019.
Current ratio
1.75 to 1
Acid-test ratio
1.27 to 1
Working capital
Fixed assets to equity ratio
Inventory turnover (based on cost of closing inventory)
Gross profit percentage
Earnings per share
Average age of outstanding accounts receivable (based
on calendar year of 365 days)
Share capital outstanding
P33,000
0.625 to 1
4X
40%
PO.50
73 days
20,000 no par
lat
value shares
Earnings for the year as a percentage of share capital
The company has no prepaid expenses, deferred, intangible assets or long-
25%
term liabilities.
Required:
Required. Reconstruct in as much detail as possible the company's balance sheet
and income statement for the year ended December 31, 2019, show supporting
computations in good form.
Answer:
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Transcribed Image Text:The following ratios and other data pertain to the financial statements of the No Forever Company for the year ended December 31, 2019. Current ratio 1.75 to 1 Acid-test ratio 1.27 to 1 Working capital Fixed assets to equity ratio Inventory turnover (based on cost of closing inventory) Gross profit percentage Earnings per share Average age of outstanding accounts receivable (based on calendar year of 365 days) Share capital outstanding P33,000 0.625 to 1 4X 40% PO.50 73 days 20,000 no par lat value shares Earnings for the year as a percentage of share capital The company has no prepaid expenses, deferred, intangible assets or long- 25% term liabilities. Required: Required. Reconstruct in as much detail as possible the company's balance sheet and income statement for the year ended December 31, 2019, show supporting computations in good form. Answer:
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