Problem $1$

Incomplete Statements, Analysis of Ratios Incomplete financial statement for FHARMALY Company are given below:

Sales Php$2,700,000$

Less cost of goods sold $?$

Gross Margin $?$

Less operating expenses $?$

Operating Income $?$

Less interest expense $45,000$

Net income before taxes $?$

Less income taxes $(40\%)?$

Net Income $?$

PHARMALY COMPANY Balance Sheet

Current assets:

Cash P$?$

Account receivable, net $?$

Inventory $?$

Total Current assets $?$

Plant and equipment, net $?$

Total Assets P$?$

Current liabilities P$250,000$

Bond payable, $10\%?$

Total liabilities $?$

Stockholders' equity

Common stock, P$2\mathrm{.}50$ par value $?$

Retained earnings $?$

Total stockholders' equity $?$

Total liabilities and stockholders' equity P$?$

The following additional information is available about the company

a$.$ Selected financial ratios computed from the statements above are given below:

Current ratio $2\mathrm{.}40$ to $1$

acid$-$test $($quick$)$ ratio $1\mathrm{.}12$ to $1$

Account receivable turnover $15\mathrm{.}0$ times

Inventory turnover $6\mathrm{.}0$ times

Debt$-$to$-$equity ratio $87\mathrm{.}50\%$

Times interest earned $7\mathrm{.}0$ times

Earnings per share P$4\mathrm{.}05$

Return on total assets $14\mathrm{.}00\%$

b$.$ All sales during the year were on account.

c$.$ The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change throughout the year.

d$.$ There were no changes in the number of common stock outstanding during the year.

e$.$ Selected balances at the beginning of the current year $($January $1)$ were as follows.

Account receivable, net P $160,000$

Inventory $280,000$

Total assets $1,200,000$

Show the supporting computation in good form for all derived amount