8/19/2019 Actrev 3

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St. Paul School of Professional StudiesPalo, Leyte

Accounting Review 3 TEGI

Pro!le" #

$ae"il %or&oration re&orted the following figures'

  ()#* ()#+

%ash and cash euivalents P (,+*) P (,)-+Receiva!les #,#3 #,/##

Inventory #,3(+ #,)/)

Pre&aid E0&enses #,1)- (,#()

Total current assets P 1,(-/ P /,*

ther assets #,*)) #*,131

Total assets P 25,796 P 22,622

Total current lia!ilities 1,(3) ,+/1

Long2ter" lia!ilities +,1- 3,1-(

%o""on stoc /,*/ +,3/3

Retained earnings 1,()) /,)))Total lia!ilities and euity P 25,796 P 22,622

Sales P (),-+#

%ost of Sales 1,)**

&erating e0&enses 1,)/*&erating inco"e P /,(#

Interest e0&ense (#)

Inco"e ta0 (,*/3 4et Inco"e P 4,048

Reuired' #. 5ori6ontal analysis of $ae"il7s !alance sheet for ()#* would re&ort

a. %ash as -.*8 of total assets c. %urrent ratio of #.)#

 !. #18 increase in cash d. Inventory turnover of /ti"es

(. 9ertical analysis of $ae"il7s !alance sheet for ()#* would re&ort

a. %ash as -.*8 of total assets c. %urrent ratio of #.)#

 !. Inventory turnover of / ti"es d. #18 increase in cash

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8/19/2019 Actrev 3

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St. Paul School of Professional StudiesPalo, Leyte

Accounting Review 3 TEGI

 

3. A co""on2si6e inco"e state"ent for $ae"il would re&ort :a"ountsrounded;

a. 4et inco"e of #-8 c. %ost of sales of 3+8 !. Sales of #))8 d. All of the a!ove

+.

8/19/2019 Actrev 3

3/3

St. Paul School of Professional StudiesPalo, Leyte

Accounting Review 3 TEGI

Pro!le" (

Assu"e the net inco"e was P /,))). 4o other infor"ation is nown, e0ce&t the

following'

Return on euity #)8 Return on Sales +8

Gross "argin &ercentage /)8 Inco"e ta0 rate +)8

%urrent ratio 3'# Return on Assets *8

Inventory turnover + >ays sale in receiva!le -)Long ter" de!t to euity ('3

 REQUIRED: ?sing the &receding ratios, construct an inco"e state"ent and a !alance

sheet with as "uch detail as &ossi!le.

#/)#