Solve for the following;

Operating cycle Age of inventory Inventory turn over Age of receivable Receivable turn over Accounts payable turn over ratio Cash conversation cycle

126 Chapter 5 ABC Co. Statements of profit or loss For the years ended December 31, 20x1 and December 31, 20x0 20x0 Sales Cost of sales GROSS PROFIT Salaries expense Depreciation expense Bad debts expense Interest expense PROFIT FOR THE YEAR 20x1 P2,296,000 (1,010,240) 1,285,760 (943,400) (66,010) (16,020) (112,000) P148,330 2,800,000 (1,260,000) 1,540,000 (890,000) (28,700) (44,500) (14,000) 562,800 Requirements: statements of profit or loss of Entity A are shown below: Entity A Statements of Financial Position As of December 31, 20x1 and 20x0 ASSETS Cash and cash equivalents Trade and other receivables Inventory Prepaid assets Total current assets 20x1 P159,600 320,400 306,000 48,000 834,000 20x0 105,000 890,000 300,000 50,000 1,345,000 Property, plant & equipment Total noncurrent assets 1,886,000 1,886,000 820,000 820,000 TOTAL ASSETS $2,720,000 2,165,000 LIABILITIES Trade and other payables Total current liabilities P556,200 556,200 540,000 540,000 Notes payable Total noncurrent liabilities 1,120,000 1,120,000 140,000 140,000 TOTAL LIABILITIES 1,676,200 680,000 EQUITY Owner's capital TOTAL LIABILITIES & EQUITY 1,043,800 P2,720,000 1,485,000 2,165,000