Exercise 11 Problem-solving Name : Score: Section : Instruction: Solve the following problems. Financial Statement Analysis 1. The condensed balance sheet of Friendster Corporations as of December 31, 2020, is given below: Assets Liabilities and Stockholders' Equity Cash P60,000 Accounts payable Trade receivable (net) Current notes payable 40,000 Inventory Long-term payable Fixed assets 252,000 Common stock 140,000. Retained earnings P480,000 P480,000 Additional information: Current ratio 1.9 to 1: Ratio of total liabilities to total stockholders' equity Inventory turnover based on sales and ending inventory 15 times Inventory turnover based on cost of sales and ending inventory 10 times Gross margin for 2014 P:500,000 Construct the balance sheet of Friendster Corporation as of December 31, 2020. 2. Bucharest Corp. gave the following information: Balance Sheet Assets Liabilities and Stockholders' Equity Cash Accounts payable 300 Short-term debt 100 Accounts receivable Inventory Long-term debt no Fixed assets Equity Total liabilities and stockholders' equity P 1,000 Total assets The net working capital is P200, the quick ratio is 1.0, and the debt-to-equity ratio is 2.5. Fill in the missing figures in the balance sheet.3. The following data represent the ratios for BMA Company for 2020: 4 times Sales to stockholders' equity 50% Current liabilities to stockholders' equity 80% Total liabilities to stockholders' equity 2.2 Current ratio 8 times FINANCIAL MANAGEMENT | Part I Net sales to inventory P45,000 Beginning inventory P55,000 Ending inventory 40 days Average collection period 70% Fixed assets to stockholders' equity All sales are credit sales. 1S Sales are equal to the costs of goods sold. From the preceding data, complete the following pro forma balance sheet: BMA Company 3 Pro Forma Balance Sheet, 2020 Account Cash Current liabilities Prepaid Accounts receivable Long-term liabilities Total liabilities Inventor Inventory Total current assets Stockholders' equity Long-te Fixed assets Equipm Total liabilities Accum Total assets and stockholders' equity P 4. The following data are from the financial statements of Hardwood, Inc. The company manufactures home decorative materials. Sales (all credit) totaled P80 million for 2020. Given: Sales to total assets 3.0 times Total debt to total assets 40% Current ratio 2.0 times Inventory turnover 10.0 times Average collection period 18.0 days Fixed-asset turnover 7.5 times Note: One year is equal to 360 days, and sales are equal to the costs of goods sold. You may use the following balance sheet account in looking for the values needed. Cash Accounts receivable Current debt Inventory Long-term debt Total current assets Total debt Fixed assets Equity Total assets Total debt and stockholders' equity