Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

 How much is the cost of goods sold?

	4,000,000
	P0
	P6,000,000
	P2,000,000

 

 

 Given the same interest, a P1100 peso investment will have a __________ value for longer time periods. 

	higher
	lower
	zero
	the same

 

Given a current ratio of 3.0 and a current assets value of P9,000,000, how much is the current liabilities?

	P1,000,000
	P2,000,000
	P4,000,000
	P3,000,000

 

Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

How much is the Total Assets amount?

	P5M
	P4M
	P6M
	P3M

 

 What is the present value of P2,000 invested at the end of year 1, P0 in year 2, and P1,000 in year 3, given an opportunity rate of 10%?

	P2,458.00
	P2,600.32
	P2,500.00
	P2,569.50

 

 

 Ariel wants to know how much money will he have at the end of one year if he invests P1000 today at 9% interest compounded annually?

	P1,900
	P2,000
	P1,090
	P1,450

 

 

When the current ratio index shows .50, it means that

	The current liabilities are greater than the total current assets
	The total assets cannot cover its maturing obligations
	Current liabilities are less than the current assets
	The current assets are not sufficient to cover the total liabilities

 

 

 Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

 How much is the inventory value?

	P2,000,000
	P3,000,000
	P1,000,000
	P4,000,000

 

It is a summary of the financial operations for a period in review.

	Balance Sheet
	Logistical Supplies Report
	Cash Flow Statement
	Income Statement

 

 

When we speak of liquidity, we normally look at the 

	obligations of the firm
	current assets
	current liabilities
	current assets and current liabilities

 

 

What is the future value of P2,000 invested at the end of year 1, P0 in year 2, and P1,000 in year 3, given an interest rate of 10%?

	P2,340
	P4,320
	P3,420
	P3,240

 

 

Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

How much is the accounts receivable?

	P600,200
	P875,000
	P958,904
	P500,000

 

 

John wants to know how much will he have at the end of 6 years given an investment of P2,000 with an interest of 6% compounded annually?

	P3,600
	P2,837.04
	P2,586.32
	P2,500

 

 When the return on sales (also known as net profit margin) is negative, what does this mean?

	The tax amount is higher than sales
	Cost of goods and operating expenses are higher than sales
	Costs and expenses combined are bigger than sales
	Sales is smaller compared to net income

 

 

If Company B has an average collection of 80 days against the industry average of 30 days, what does this imply?

	Company B collects faster than the industry average
	Company B collects slower than the industry average
	Company B collects higher than the industry average
	The industry has a problem

 

 What is the present value of P1000 at the end of 2 years, given an opportunity cost of 5% compounded annually?

	P980.03
	P985.00
	P907.03
	P807.21

 

 Which of the accounts is not considered in the Acid Test (Quick Ratio)?

	Cash
	Petty Cash
	Inventory
	Accounts Receivable

 

How do you improve the current ratio?

	Increase accounts payable
	Borrow long term to increase cash
	Increase expenses
	Borrow short term to increase cash

 

  __________ is a snapshot of the company's financial standing as of given date.

	Balance Sheet
	Cash Position
	Cash Flows
	Income Statement

 

 

Which among the accounts is a non-depreciable asset?

	Equipment
	Furniture
	Building
	Land

 

Comparing Company A's performance in 2020 against its previous years' performance is called

	regression analysis
	critical analysis
	pandemic analysis
	trend or time series analysis

  

What is the possible negative consequence of the food business having a long average age of inventory (Days Sales Inventory; Inventory Period)

	Price Ceiling might be reached
	Products may become spoiled or expired
	Shortage of Supply
	Products will command higher prices

 

If the inventory turnover of a company is 1.0, what does it mean?

	One batch of inventory gets to be sold in one year.
	Sales is selling faster than what the company can produce
	The company is suffering from inventory stock outs
	The company is selling its inventories everyday

 

 

Given the table, compute for the following:

Credit Sales *	10,000,000	Current Ratio	2 times
Gross Profit Margin	60%	Total Debt to Total Asset Ratio	60%
Ave. Collection Period	35 days	Total Asset Turnover	2 times
No. of Days in a Year	365 days	Inventory Turnover	4 times

* All sales are credit sales. Sales level is the same for the year

** Inventory level is constant throughout the year

 How much is  the gross profit?

 Can we have a negative current ratio?

 

Answer rating: 100% (QA)

Lets address your questions and calculations one by one 1 To calculate the cost of goods sold you can use the formula Cost of Goods Sold COGS Credit Sales 1 Gross Profit Margin In this case its 100000... View the full answer