question archive A) Vibrant Company's Statement of Financial Position had balances as follows: Cash 545,000 Accounts Receivables 900,000 Inventory 560,000 Prepaid Assets 80,000 Accrued liabilities 160,000 Accounts Payable 450,000 Notes payable 650,000 1
A) Vibrant Company's Statement of Financial Position had balances as follows: Cash 545,000 Accounts Receivables 900,000 Inventory 560,000 Prepaid Assets 80,000 Accrued liabilities 160,000 Accounts Payable 450,000 Notes payable 650,000 1
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A) Vibrant Company's Statement of Financial Position had balances as follows:
Cash 545,000
Accounts Receivables 900,000
Inventory 560,000
Prepaid Assets 80,000
Accrued liabilities 160,000
Accounts Payable 450,000
Notes payable 650,000
1. The debt ratio is ____
2. The debt to equity ratio is ___
3. The amount of stockholder's equity is ____
Assume the company had total net sales of P5,000,000, 45% of which is sales on credit.
4. The asset turn over ratio is ____
5. The accounts receivable turn over is ____
Assuming gross profit ratio of 48% and operating expenses of
6. The gross profit is Answer
7. The return on equity ratio is ___
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(Note: As you can see in the problem, the data for operating expenses is not given, as well as the number of outstanding shares - for the computation of number 7, return on equity ratio. I hope you could add that on the comment section so I can proceed on solving that as well. Thank you.)
1. The debt ratio is 0.60
2. The debt to equity ratio is 1.53
3. The amount of stockholder's equity is P825,000
4. The asset turn over ratio is 1.09
5. The accounts receivable turn over is 2.47
6. The gross profit is P2,400,000
7. The return on equity ratio is: (to be followed up :) )
Step-by-step explanation
Cash 545 000 Accrued liabilities 160 600 Date Accounts Receivables 900 000 Accounts Payable 450 0vo Inventory 560 000 Notes Payable 650 000 Assume . Propaid Assets 80 000 TOTAL LIABILITIES 1260 000 Net Sales : P 5000 010 TOTAL ASSETS 2 085 000 Accounts Receivable : TOTAL EQUITY 825 0OD 5 0ou 600 X 45 % = P 2 250 000 1. Debt Ratio: Total debt - Total Assets Cash : P 2 750 050 = 1 260 000 2 083 000 = 10 - 60 Gross profit ratio : 487. 2. Debt to Equity Ratio : Total liabilities : Total Equity = 1260 000 - 825 000 1.53 3. Amount of stockholders equity Assets - Liabilities = 2085 000 - 1260 000 208'5 an + 5000 0ND = 1825 000 4. Asset turn over ratio: Net sales : Average Total Assets = P 5000 000 : ( 2 085 060 + 8 0:00 060 : 2 - coop = P 50UD ODD - BB 43 1500P4585050 $ 1.09 ( 900 0vo + 2 250 009) 5. Accounts receivable fumovor : Not sales: Average AR =P5000 000 : ((900 050 + P3150 060 ) : 2 $ 50 00 080 : P 2025 0UD 2.47 Not Gross Profit Sales - COGs ( cost of Goods Sold 7) Return on Equity ration = P GOOD OND - (100- 48 % ) 5000 0UD Net Income - No. of shares = P 50 00 050 - $ 2 600 UND - comment the data. Thank you = P 2 400 050 I nood operating expenses and no . of shares advan
