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Please compute for the items being asked below and provide the solution as well. Thank you! The XYZ Company asked you to interpret the following
Please compute for the items being asked below and provide the solution as well. Thank you!
The XYZ Company asked you to interpret the following ratios provided by its accountant: Acid-test ratio 1.5 to 1 8 times Times interest earned Gross margin ratio 40% Inventory turnover 6 times Debt to equity ratio 9 to 1 Ratio of operating expenses to sales 20% The gross profit for the year ended December 31, 2020 was PI, 200, 000.00. Total equity on December 31, 2020 amounted to PI, 800,000.00. The beginning balance of merchandise inventory was P400, 000.00. The company's long-term liabilities consisted of bonds payable with interest at 10%. You decided to reconstruct the company's financial statements based on the limited information given to serve as basis for further analysis. a. Compute for the total sales. b. Compute the ending inventory C. Compute the purchases d. Compute the Operating Expenses e. Compute the Net Income f. Compute the Interest Expense g. Compute the quick asset h. Compute the total current asset i. Compute the bonds payable j. Compute the total current liabilitiesStep by Step Solution
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