Question
PROBLEM 1 1. The statement of Financial data of Nile's Department Store is given below: Current Assets: Cash P140,000 Accounts Receivable 110,000 Notes receivable 15,000
PROBLEM 1
1. The statement of Financial data of Nile's Department Store is given below:
Current Assets:
Cash P140,000
Accounts Receivable 110,000
Notes receivable 15,000
Merchandise Inventory 230,000
Prepaid Expenses 12,000
Total P507,000
Current Liabilities:
Accounts Payable P 90,000
Accrued Expenses 40,000
Total P130,000
Required ;
1. Determine the Following:
a. Working capital
b. Current ratio
c. Acid test ratio
2. Interpret the determined current and acid test ratio.
2. The following data were gathered from the records of Ulai Enterprises:
Inventories:
Beginning P80,000
Ending 60,000
Sales:
Credit P200,000
Cash Sales 50,000
Cost of Sales 210,000
Accounts Receivable:
Beginning P30,000
Ending 70,000
Assume 365 days in a year.
Required: Compute the following:
a. Receivable Turn - Over
b. Average Collection Period
c. Inventory Turn Over
d. Average Age of Inventory
3.The following are the selected date of Ahava Corporation for the years ended December 31,2018 and 2019. 2018 2019
2018 2019
Sales (All in account) P 1,400,000 P1,100,000
Cost of Sales 850,000 780,000
Average Inventory during the year 210,000 195,000
Average Receivable during the year 290,000 190,000
Average Investment during the year 1,200,000 1,500.000
Operating Expenses (distribution & Admin) 250,000 300,000
Required:
1. Compute the following for 2018 and 2019.
a. Gross Profit Percentage
b. Rate of Return on Sales
c. Rate of Return on Investment (ROI)
d. Inventory Turn Over
e. Accounts Receivable Turnover
PROBLEM 2
2. the journal entry for the transaction (debit-credit format) to record the above transactions.
The King Monarch Co. is a wholesaler of office and school supplies.
The following are the transactions of The King Monarch Co. for the first month of its operations.
All cash disbursements are made by bank check.
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