O Davao Doctors College, Inc. Business Finance in the Philippine Setting WORKSHEET 5 Written Work 5.2 (Write your answer on the separate sheet) A. Problem Solving. Show your solutions. 1. Jenny merchandising has an acid-test ratio of 2 0 to 1 and has no prepaid expenses at the end of 2018. The current assets and inventory amount toP270,000 and P108,000, respectively. Required: Compute the value of current liabilities. 2. Yvone Trading provides the following information: December 31 2018 Net credit sales 2017 930,750 Cost of sales 576,000 Trade receivables 52,500 48,000 Inventory 144,000 117,000 Required: Compute the inventory turnover of the business at the end of 2018. 3. Nicanor Merchandising reports the following information for year 2018: Annual sales 1,250,000 Cost of sales 500,000 Net earnings 200,000 Investment 625,000 Required: Compute the return on investment of Nicanor Trading. 4. Angel Trading provides the following information: December 31 2018 2017 Net credit sales 1,054,850 Cost of sales 744,600 Trade receivables 59,500 54,400 Inventory 163,200 132,600 Required: Compute the receivable turnover of the business at the end of 2018. 5. Princess Merchandising presents the following information for the year ended 2018. Net cash sales 337,500 Cost of goods sold 2,025,000 Inventory, Jan 1, 2015 675,000 Purchases 2,700,000 Accounts receivable , Jan 1, 2018 2,250,000 Accounts receivable, Dec 31, 2018 2,475,000 The account receivable turnover for 2018 was 4.0 to 1 Required: Compute the net credit sales for 2018