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Compute for the ratios for 2020 and try to interpret the meaning of those ratios using excel 1. 2. 3. Lagdaan Company provided the following

Compute for the ratios for 2020 and try to interpret the meaning of those ratios using excel

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Lagdaan Company provided the following comparative information: 2020 2019 Statement of Financial Position Current Assets Cash and cash equivalents Trade and other receivables 15,000 20.000 276,000 227,000 604,000 476,000 Inventory Prepaid Expenses Total Current Assets 15,000 20,000 866,000 787,000 Non-current Assets Property, plant and equipment 2,225,000 3,000,000 1.000.000 Investment in stocks 1.000.000 3,225.000 Total Non-current assets 4,000,000 237,000 209,000 100,000 Current liabilities Trade and other payables Other current liabilities Total current liabilities Non-current liabilities Bonds Payable - 10% Total liabilities 85,000 294,000 337,000 1,000,000 1,000,000 1,337,000 1,294,000 23 Shareholder's Equity 24 Share Capital, P100 par 2,500,000 2,000,000 25 Reserve 500,000 500,000 26 529,000 218.000 Retained Earnings Total Total liabilities and shareholder's equity 27 28 29 2.718.000 3,529,000 4,866,000 4,012.000 Activate Windows 2019 2,915,000 Additional information: The market prices per share were P185.00 and P130.00 for 2020 and 2019, respectively. The company also paid dividends per share of P2.80 in 2020 and P2.00 in 2019. 1 2 Statement of Comprehensive Income 3 2020 4 Sales 3,270,000 5 Expenses: 6 Cost of Sales 2,100,000 7 Selling expenses 370,000 8 Administrative expenses 200,000 9 Total 2,670,000 10 Operating Income 600,000 11 Interest Expense 100,000 12 Income before tax 500,000 13 Income tax - 30% 150,000 14 Income after tax 350,000 1,900,000 340,000 215,000 2,455,000 460,000 100,000 360,000 108,000 252,000 15 Activate Windows Compute for the following ratios and try to interpret the meaning of those ratios: Use 2020 financial information 1 Current Ratio 2 Quick Acid Test Ratio 3 Receivable Turnover 4 Average Collection Period 5 Inventory Turnover 6 Average Sales Period 7 Debt ratio 8 Equity ratio 9 Debt to Equity Ratio 10 Time Interest Earned 11 Gross Profit Rate 12 Operating Profit Margin 13 Net Profit Margin 14 Returnn on Investments 15 Return on Equity 18 19 20 21 22 15 Return on Equity 16 Earnings Per Share 17 Price-Earnings Ratio 18 Dividend-yield Ratio 19 Dividend-Payout Ratio 20 Book value per share 23 24

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