Stewart Company Statement of Financial Position Assets: Cash and marketable securities P600,000 Accounts receivable 900,000 Inventories 1,500,000 Prepaid expenses 75,000 Total current assets P3,075,000 Fixed assets 8,000,000 Less: accum. depr. (2,075,000) Net fixed assets P5,925,000 Total assets P9,000,000 Liabilities: Accounts payable P800,000 Notes payable 700,000 Accrued taxes 50,000 Total current liabilities P1,550,000 Long-term debt 2,500,000 Owner's equity (1 million shares of common stock outstanding) 4,950,000 Total liabilities and owner's equity P9,000,000 Net sales (all credit) P10,000,000 Less: Cost of goods sold (3,000,000) Selling and administrative expense (2,000,000) Depreciation expense (250,000) Interest expense (200,000) Earnings before taxes 4,550,000 Income taxes (1,820,000) Net income P2,730,000 4) Based on the information in Table 2.0, the fixed asset turnover ratio is A. 1.69. B. 2.17. C. 4.39. D. 4.80. 5) Based on the information in Table 2.0, the inventory turnover ratio is A. 1.3 times. B. 2.0 times. C. 2.5 times. D. 2.9 times. 6) Based on the information in Table 2.0, assuming that no preferred dividends were paid, the return on common equity is A. 44.86%. B. 38.83%. C. 55.15%. D. 17.56%. 7) Based on the information in Table 2.0, the accounts receivable turnover is A. 8.11. B. 10.00. C. 11.11. D. 9.50. 8) Based on the information in Table 2.0, the operating profit margin is A. 47.5%. B. 32.8%. C. 37.5%. D. 26.4%. 9) Based on the information in Table 2.0, the average collection period is A. 29.85 days. B. 46.34 days. C. 32.85 days. D. 36.50 days. 10) Based on the information in Table 2.0, the debt ratio is A. 32.6%. B. 45.0%. C. 24.1%. D. 55.2%. 11) Based on the information in Table 2.0, and assuming the company's stock price is P30 per share, the P/E ratio is A. 10.99. B. 9.85. C. 4.83. D. 3.09. 12) Based on the information in Table 2.0, the times interest earned ratio is A. 32.33 times. B. 19.00 times. C. 23.75 times. D. 12.33 times. 13) Based on the information in Table 2.0, the total asset turnover ratio is A. 2.33. B. 1.41. C. 1.11. D. 1.05. 14) Based on the information in Table 2.0, the ROA is A. 46.54%. B. 39.50%. C. 52.78%. D. 24.73%. Table 3.0 Apollo Corp. reported the following Statement of Financial Position: Cash P28,000 Accounts payable P5,000 Accounts receivable 15,000 Notes Payable 12,000 Inventory 45,000 Accruals 17,000 Net Fixed Assets 122,000 Long-Terms Debt 45,000 Common Stock 10,000 Retained Earnings 121,000 Total assets P210,000 Total Liab. & Equity P210,000 15) Apollo Corp.'s debt ratio is A. 32.17%. B. 39.45%. C. 42.95%. D. 37.62%. 16) Apollo Corp.'s current ratio is A. 2.59. B. 2.98. C. 3.88. D. 2.74. 17. Apollo has sales of P600,000 and net income of P50,000. Apollo's return on equity is A. 5.00%. B. 41.13%. C. 50.00%. D. 38.17%. Please refer to Table 4.0 for the following questions. Table 4.0 Emery Corporation Statement of Financial Position Income Statement Assets: Cash P250,000 Sales (all credit) P8,000,000 Accounts receivable 450,000 Cost of goods sold (4,000,000) Inventory 500,000 Operating expense (2,900,000) Net fixed assets 2,100,000 Interest expense (150,000) Total assets P3,300,000 Income taxes (380,000) Net income P570,000 Liabilities and owners' equity: Accounts payable P100,000 Notes payable 450,000 Long-term debt 1,050,000 Owners' Equity 1,700,000 Total liabilities and owner's equity P3,300,000 18) Based on the information in Table 4.0, assuming that the firm has no preferred stock, and paid P300,000 in common dividends, the firm's return on equity was A. 43.34%. B. 79.43%. C. 33.53%. D. 61.89%. 19) Based on the information in Table 4.0, the total asset turnover is A. 2.87 times. B. 2.42 times. C. 3.25 times. D. 2.10 times. 20) Based on the information in Table 4.0, the average collection period is A. 27.36 days. B. 38.01 days. C. 20.53 days. D. 17.49 days. 21) Based on the information in Table 4.0, the debt ratio is A. 18.38%. B. 53.43%. C. 48.48%. D. 40.24%. 22) Based on the information in Table 4.0, the operating profit margin is A. 25.80%. B. 18.59%. C. 13.75%. D. 33.33%. 23) Based on the information in Table 4.0, the operating return on total assets is A. 55.62%. B. 44.74%. C. 10.06%. D. 33.33%. Short Problems: 24) Denver Systems has total assets of P1,000,000; common equity of P400,000; a gross profit of P800,000; total operating expenses of P620,000; interest expense of P20,000; income taxes of P74,000; and preferred dividends of P30,000. What is Denver Systems' return on equity? A. 21.5% B. 7.5% C. 14.0% D. 20.0% 25) RBW Corp. has cash of P48,000; short-term notes payable of P35,000, accounts receivable of P100,000; accounts payable of P120,000; inventories of P200,000; and accruals of P90,000. What is RBW's current ratio? A. 1.42 B. 2.71 C. 0.64 D. 1.57 26) Acme Incorporated has a debt ratio of .42, noncurrent liabilities of P20,000 and total assets of P70,000. What is Acme's level of current liabilities? A. P10,600 B. P8,400 C. P9,400 D. P12,348 27) John Box Inc. has an annual interest expense of P30,000 and pays income tax equal to 40 percent of taxable income (EBT). John Box's times-interest-earned ratio is 4.2. What is John Box's net income? A. P57,000 B. P57,600 C. P96,000 D. P126,000 28) Bill's Bike Shop has a return on assets of 12%. Anton's assets = P100 while Anton's owner's equity = P40 and its debt equals P60. What is Bill's return on equity? A. 18% B. 30% C. 20% D. 12%