Specific Topic is on FINANCIAL STATEMENT ANALYSIS

Profitability ratios-1. The following data were taken from the records of F Company and T Company (amounts in thousands and statement of financial position data are on the average): F Co. T Co. Sales P 80,COO P 10.000 Profit (loss) 3.050 640 Interest expense 50 40 Total assets 12.000 2.000 Ordinary shareholders' equity 6,000 500 Preference dividends, cumulative 200 200 No. of ordinary shares outstanding 600 50 Tax rate 40% 40% Required: Determine the following for F Company and T Company: a Return on sales or profit margin b. Return on investment c. Return on ordinary equity d. Earnings per share 7. Basic profitability ratios-2. Find the missing data (peso amounts in thousands). a b C Profit P50 ? ? Sales P1,000 4,000 Total assets P400 P3,000 Shareholders' equity P150 7 ? ROS 7 20% Asset Turnover ? 0.2 3 ROA ? 12% ROE 10% 10% EPS No. of ordinary shares outstanding 1,000 1,000 1,000 8. Basic profitability ratios - 3. Find the missing data. a b C Profit margin 10% 12% 10% Hint: Assets tumover 4 5 ? EM = 1/ER Equity multiplier 1.25 2 ER = 1/EM ROE ? 7 20% Debt ratio 40% 25%