1. A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its residual income is P 36,000. What is the company's return on investment?

a. 30%

b.12%

c.18%

d.22%

Note: Please provide the computation in good form and also the formula on how you get the answer.

2. Expressed as a percentage, what would be a company's current ratio if net fixed assets are Ph1,230,000; current assets, P368,400; current liabilities, Ph120,00 and other liabilities, Ph65,000

a. 307%

b.450%

c.603%

d.860%

Note: Please provide the computation in good form and also the formula on how you get the answer.

3. Given an acid-test ratio of 2.0, current assets of Ph5,000 and inventory of Ph2,000, the value of current liabilities is

a. 1500

b.2500

c.3500

d.6000

Note: Please provide the computation in good form and also the formula on how you get the answer.

4. A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities make a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will

a. both decrease

b.increase and decrease, respectively

c.both increase

d.remain the same and decrease, respectively

5. Sensitivity analysis refers to

a. what-if situations.

b. variable costs only.

c. fixed costs only.

d. control

Note: Please provide the computation for each question (in good form) and also the formula on how you get the answer. Thanks!