Question
11. Given the table, compute for the following: Credit Sales * 10,000,000 Current Ratio 2 times Gross Profit Margin 60% Total Debt to Total Asset
11. Given the table, compute for the following:
Credit Sales * | 10,000,000 | Current Ratio | 2 times |
Gross Profit Margin | 60% | Total Debt to Total Asset Ratio | 60% |
Ave. Collection Period | 35 days | Total Asset Turnover | 2 times |
No. of Days in a Year | 365 days | Inventory Turnover | 4 times |
* All sales are credit sales. Sales level is the same for the year
** Inventory level is constant throughout the year
(in Pesos) | |||
Cash | 41,096 | Accounts Payable | 500,000 |
Accounts Receivable |
| Notes Payable | 500,000 |
Inventory ** |
| Total Current Liabilities |
|
Total Current Assets |
| Long Term Debt |
|
Net Fixed Assets |
|
|
|
Total Assets | 5,000,000 | Total Liabilities | 3,000,000 |
|
| Stockholders Equity |
|
|
| Total Liabilities and Stockholders Equity | 5,000,000 |
|
|
|
|
Gross Profit |
|
|
|
How much is the cost of goods sold?
a. P3,000,000
b. P10,000,000
c. P6,000,000
d. P4,000,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started