Show the solution in good accounting form E10-5B: (Indicators of Liquidity and Leverage) Financial statements of CARROTS
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E10-5B: (Indicators of Liquidity and Leverage) Financial statements of CARROTS Corporation are reproduced below. The market price of Carrot's ordinary share was P20 per share on November 30, Year 2. Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities Carrots Corporation Statement of Financial Position Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity Sales (all on credit) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before income tax Income tax expense Net income As of November 30 (in thousands of pesos) A. Current Ratio B. Acid-test ratio C. Inventory turnover D. Days' supply in inventory Instruction: Determine the following for Carrots Corporation (show your solution in good accounting form) Year 2 P 3,000 1,000 14,000 24,000 P 42,000 68,000 10,000 P120,000 P 5,000 1,000 P 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 Carrots Corporation Statement of Income For the Year Ended November 30, Year 2 (in thousands of pesos) P200,000 (120,000) 80,000 (38,000) 42,000 (2,000) 40,000 (15,000) P 25,000 F. Average collection period G. Times interest earned H. Debt to asset ratio 1. Debt-to-equity Year 1 P 2,000 1,000 11,000 16,000 P 30,000 60,000 10,000 P100,000 P 4,000 1,000 P 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000 E10-5B: (Indicators of Liquidity and Leverage) Financial statements of CARROTS Corporation are reproduced below. The market price of Carrot's ordinary share was P20 per share on November 30, Year 2. Cash Trading securities Accounts receivable (net) Merchandise inventory Total current assets Property, plant, and equipment (net) Long-term investments Total assets Accounts payable Wages payable Total current liabilities Bonds payable, 10% Total liabilities Carrots Corporation Statement of Financial Position Ordinary share capital, no par, 10,000,000 shares Accumulated profits Total shareholders' equity Total liabilities and shareholders' equity Sales (all on credit) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before income tax Income tax expense Net income As of November 30 (in thousands of pesos) A. Current Ratio B. Acid-test ratio C. Inventory turnover D. Days' supply in inventory Instruction: Determine the following for Carrots Corporation (show your solution in good accounting form) Year 2 P 3,000 1,000 14,000 24,000 P 42,000 68,000 10,000 P120,000 P 5,000 1,000 P 6,000 20,000 P 26,000 P 25,000 69,000 P 94,000 P120,000 Carrots Corporation Statement of Income For the Year Ended November 30, Year 2 (in thousands of pesos) P200,000 (120,000) 80,000 (38,000) 42,000 (2,000) 40,000 (15,000) P 25,000 F. Average collection period G. Times interest earned H. Debt to asset ratio 1. Debt-to-equity Year 1 P 2,000 1,000 11,000 16,000 P 30,000 60,000 10,000 P100,000 P 4,000 1,000 P 5,000 20,000 P 25,000 P 25,000 50,000 P 75,000 P100,000
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A Current Ratio Current Ratio Current Assets Current Liabilities For Carrots Corporation Current Assets Year 2 P3000 P1000 P14000 P18000 Current Liabi... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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