ABC has 1,000,000 common shares outstanding. The price of the stock is P8. ABC declared dividends per share of

P0.10. The balance sheet at the end of 2013 showed approximately the same amounts as that at the end of 2014.

The financial statements for ABC Merchandising are as follows:

ABC Company, Income Statement for 2014 (in thousands)

Sales P4,700

Cost of goods sold 2,300

Gross Profit P2,400

Operating expenses:

Depreciation P 320

Other 1,230 1,550

Income before int. & tax P 850

Interest expense 150

Income before taxes P 700

Income taxes 280

Net income P 420

ABC Company, Balance sheet at December 31, 2014 (in thousands)

ASSETS LIABILITIES AND STOCKHOLDERS EQUITY

Cash P 220 Accounts payable P 190

Accounts receivable 440 Accrued expense 180

Inventory 410 Total current liabilities P 370

Total current assets P1,070 Long-term debt 1,960

Plant and equipment 5,600 Common stock 1,810

Accumulated depreciation (2,100) Retained Earnings 430

TOTAL ASSETS P4,570 TOTAL LIAB. & SHE P4,570

REQUIRED: (round-off answers to two decimal places)

1. Current ratio 11. EPS

2. Acid-test ratio 12. P/E Ratio

3. Accounts receivable turnover 13. Dividends Yield

4. Inventory turnover 14. Payout ratio

5. Gross profit margin 15. Debt ratio

6. Operating profit margin 16. Debt- equity ratio

7. Return on sales (RoS) 17. Times Interest Earned

8. RoA operational performance 18. Defensive interval ratio

9. RoA total management effort 19. Cash flow to total debt

10. Return on Equity (RoE) 20. Cash flow margin