Problem 1 (Day Sales Outstanding) Tulips Company has a DSO of 40 days, and its annual sales

Fantastic news! We've Found the answer you've been seeking!

Question:

Problem 1(Day Sales Outstanding) Tulips Company has a DSO of 40 days, and its annual sales are P7, 300, 000. What is its accounts receivable balance? Assume that it uses a 363-day year.

Problem 2(Debt Ratio) Jasmine Inc. has an equity multiplier of 2.4, and its assets are financed with some combination of long-term debt and common equity. What is its debt-to-assets ratio?

Problem 3(Market/Book Ratio) Alessandra Company has P10 billion in total assets. Its balance sheet shows P1 billion in current liabilities, P3 billion in long-term debts, and P6 billion in Analysis of Financial Statements common equities. It has 800 million shares of common stock outstanding, and its stock price is P32 per share. What is Alessandra Company market/bookratio?

Problem 4(Price/Earnings Ratio) A company has an EPS of P2.00, a book value per share of P20, and a market/book ratio of I.2 x. What is its P/E ratio?

Problem 5(DuPont and ROE) A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are P100 million, and it has total assets of P50 million. What is its ROE?

Problem 6(DuPont and Net Income) Mindanao Mining has P6 million in sales; its ROE is 12%, and its total assets turnover is 3.2 x. The company is 50% equity financed, and it has no preferred stock outstanding. What is its net income?

Problem 7(Basic Earning Power) Oriental Manufacturing recently reported the following information: Net income is P225, 000, Oriental is P600, 000, ROA is 8%, and interest expense manufacturing tax rate is 35%. What is its basic earnings power (BEP) ratio?

Problem 8(Ratio Calculations) Assume the following relationships for Woody Corp: Sales/Total assets is

1.5 x. return on assets (ROA) is 3.0%, and return on equity (ROE) is 5.0%. Calculate Woody Corp. profit margin and debt-to-assets ratio assuming the firm uses only debt and common equity. Giselle Company has P12 billion in assets, and its tax rate is 40%.

Problem9(Ratio Calculations)GiselleCompanyhas P12billioninassets,anditstaxrateis 40%.Itsbasic earning power (BEP) ratio is 15%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE)ratio?

Problem 10(Return on Equity) Pomelo Company's ROE last year was only 3%; but its management has developed a new operating plan that calls for a debt-to-assets ratio of 60%, which will result in annual interest charges of P300,000. The firm has no plans to use preferred stock. Management projects an EBIT of P1,000,000 on sales of P10,000,000, and it expects to have a total assets turnover ratio of 2.0. Under these conditions, the tax rate will be 34%. If the changes are made, what will be the company's return on equity?