# Compute the following ratios for 2018 and 2019. Show your solution. 1. Current Ratio

## Question:

Compute the following ratios for 2018 and 2019. Show your solution.

1. Current Ratio 9. Interest Coverage Ratio

2. Quick Ratio 10. Gross Profit Ratio

3. A/R Turnover Ratio 11. Profit Margin Ratio

4. Days in Accounts Receivable 12. Return on Assets

5. Inventory Turnover Ratio 13. Return on Equity

6. Days in Inventory 14. Asset Turnover Ratio

7.Debt to Total Assets Ratio 15. Fixed Asset Turnover

8. Debt to Equity Ratio

2- What effect would the following transactions have on the firm's current ratio (and state the resulting figures)?

1. Hanson Neil Tyzer Company has current assets of P800,000 and current liabilities of P500,000.

a. Two new trucks are purchased for a total of P100,000 in cash.

b. The company borrows P100,000 short term to carry an increase in receivables of the same amount.

c. Additional common stock of P200,000 is sold and the proceeds invested in the expansion of several terminals.

d. The company increases its accounts payable to pay a cash dividend of P40,000 out of cash.

**Related Book For**

## Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.