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1. Jonlee Corporation reported sales of P in 2006, P in 2007 and P in 2008.In an index analysis where 2007 is used as the base year, the respective sales percentages would be

2. Green Company plans to purchase new equipment costing P plus freight and installation costs estimated at P.The purchase of the new equipment will prevent the company from having to incur costs of P to repair equipment now in service.Depreciation on the new equipment has been estimated at P each year.The income tax rate is 40%.The net investment in the new equipment for capital investment planning is

3. If the following data are estimated for next year, what unit sales would be needed to earn P after taxes?

Forecast sales (P per unit) P

Variable costs 240,000

Manufacturing fixed costs ,000

Administrative fixed costs 000

Assumed tax rate %

4. If the economy is facing demand-pull , which of the following would be a logical action by the government?

5. A supplier extends a credit term of , n(EOM). The EOM (end-of-month) term has effectively extended credit period up to an average of 75 days from the last day of the discount period.

Using a 365-day year, what is the nominal annual cost of trade credit?

6. Red Company established a standard cost for raw materials at P 25.00 per unit.During the year, a total of units were purchased of which was at P 24.70 each, 20% was at P 24.90 each, and the balance, P 25.60 each.The raw materials cost variance is

7. On January 1, 2008, Brown Company has a receivable balance of P 1 M. During 2008, it generated sales amounting to P 20 M, of which 60% is made on credit. 2008 receivable collections amounted to P 9,000,000.The accounts receivable turnover is

8. A careful study by a company's cost analyst has determined that if a truck is driven ,000 miles during a year, the average operating cost is P 11.6 per mile.If a truck is driven only ,000 miles, the average operating cost increases to P 13.6 per mile.Using the high-low method, estimate the unit variable cost.

9. Pink Construction needs an on-site office for its Forbidden Kingdom Construction project.Pink can rent a house trailer for this purpose at a rate of P 00 per month.As an alternative, Pink can construct an on-site office.Pink estimates that the construction of an on-site office would require materials costing P 100 (20 percent of which are salvageable upon dismantling) and labor costing P 000.Ignoring interest and income tax effects, Pink will realize a net benefit by constructing its own on-site office of Forbidden Kingdom project only if the length of the project is estimated to be at least:

C A. 18 months

B. 20 months

C. 22 months

D. 25 months

10. Assuming P 20,000 net annual cash inflows from a 4-year P 59,120-capital investment project, the break-even rate of return (IRR) for the project is closest to

11. Assuming a current ratio of 3.5 and a quick ratio of 1.4, determine the amount inventory of a company whose current liabilities are P 120,000 and long-term liabilities P 480,000.

12. Blue, Inc. uses a learning curve of 80% for all new products it develops.A trial run of 500 units of a new product shows total labor-related costs (direct, indirect labor, and fringe benefits) of P 120,000.Management plans to produce 1,500 units of the new product during the next year.

Determine the unit cost of production for next year for labor-related costs. Round-off answer to the nearest whole amount.

13. Return on equity is 20%. Return on investment is 5%.Determine the debt-equity ratio.

14. Purchases = 80% of cost of sales; Fixed overhead is, on the average, 20% of inventory cost.If cost of goods sold is P 250,000, then how much is the difference in income reported under absorption costing and variable costing?

15. Yellow Corporation's estimated its after-tax cost of capital is 7.8%.It has the following capital structure:

Common stock 50%

Preferred stock 20%

Long-term debt 30%

Assuming the company's cost of common equity is 10%, the cost of preferred equity is 8%, and the firm's tax rate is 40%, what is the pre-tax cost of long-term debt? Round-off answer to two decimal places. (2 minutes)

16. 10% is the profit margin when sales level last year reached P 100,000.If the operating leverage last year was 4 times, then what would have been the variable costs last year to break-even?

17. If the annual percentage rate of interest is 10 percent compounded quarterly and payments are to be made quarterly, then how many percent is the effective annual rate? (Round-off answer to two decimal places)

18. Plowback ratio is 0% while dividend yield is 20%. If earnings per share is P 20, then how much would be the initial public offering per share?

19. Black Merchandising has an optimal order quantity of 2,000 units. Black's customers demand units each year.Transaction cost incurred is P 12 per order. If Black also maintains a safety stock of 100 units, then how much is the total annual carrying costs?

20. Net profit ratio contribution margin ratio = __________