PROBLEM 1 (Day Sales Outstanding) Tulips company has a DSO of 40 days, and its annual sales are P7,300,00. what is its account receivable balance? Assume that it uses a 363- day year.

PROBLEM 2 (Debt ratio) Jasmine Inc, has

an equity of 2.4, and its assets are financed with some combination of

long-term debt and common equity. what is its debt to assets ratio.

PR3OBLEM 3 (Market/Book Ratio)

Alessandra Company has P10 billion in total assets. it's balance sheet shows P1

billion in current liabilities, P3 billion in long-term debts, and P6 billion

in Analysis of financial Statements common equities. It has 800 million shares

of common stock outstanding, and its stock price is P32 per share. What is

Alessandra Company market/book ration?

PROBLEM 4 (Price/Earnings ratio) A

company has an EPS of P2.00, a book value per share of P20 and a market/book

ration of I.2 x. What is its P/E ratio?

PROBLEM 5 ( DuPont and ROE) a firm has

a profit margin of 2% and an equity multiplier of 2.0. It's sales are P100

million, and it has total assets of P50 million. What is its ROE?

PROBLEM 6 ( DuPont and Net Income)

Mindanao mining has P6 million in sales; its ROE is 12% and its total assets

turnover is 3.2 x. The company is 50% equity financed, and it has no preferred

stock outstanding. What is its net income?

PROBLEM 7 ( Basic Earning Power)

Oriental Manufacturing recently reported the following information: Net income

is P225,000, Oriental is P600,000, ROA is 8%, and interest expense

manufacturing tax rate is 35%. What is its basic earning power (BEP) ratio?

PROBLEM 8 (Ratio Calculations) Assume the

following relationships for Woody Corp: Sales/Total assets is 1.5 x. return on

assets (ROA) is 3.0% and return on equity is (ROE) is 5.0%. Calculate Woody

Corp. profit margin and debt to assets ration assuming the firm uses only debt

and common equity. Giselle company has P12 billion assets, and its tax rate is

40%.

PROBLEM 9 (Ratio Calculations) Giselle

Company has P12 billion in assets, and its tax rate is 40%. its basic earning

power (BEP) ration is 15% and its return on assets (ROA) is 5%. What is its

times interest earned (TIE) ratio?

PROBLEM 10 ( Return on Equity) Pomelo

Company' ROE last year was only 3% but its management has developed a new

operating plan that calls for a debt to assets ratio of 60% which will result

in annual interest charges of P300,000. The firm has no plans to use preferred

stock. Management projects an EBIT of P1,000,000 on sales of P10,000,000 and

its expects to have a total assets turnover ratio of 2.0. under these

conditions, the tax rate will be 34%. if the changes are made, what will be the

company's return on equity?