The president of Mayang Inc. has been concerned about its operating performance and financial strenght. She has obtained from of DTI the average of certain ratios for the industry. She gives you these ratios and the companies comparative financial statements for years 2019 and 2018.

BALANCE SHEET - Two years ending December 31

2019 2018 Assets: Cash 14,000 10,000 Accounts Receivable 21,000 15,000 Inventories 50,000 43,000 Prepaid Expenses 2,000 6,000 Property and Equipment 190,000 140,000 Accumulated Depreciation (65,000) (54,000) Long term investments 70,000 90,000 Total Assets P 282,000 P 250,000

Liabilities and Stockholders Equity: Accounts Payable P 26,000 P 25,000 Accrued Liabilities 10,000 12,000 Dividends Payable 13,000 18,000 Income tax Payable 36,000 31,000 Bonds Payable 50,000 40,000 Common Stock, P10 par 80,000 70,000 Retained Earnings 67,000 54,000

Total Liabilities and Stockholders Equity P282,000 P250,000

INCOME STATEMENT -For the fiscal year ended December 31, 2019

Sales P 230,000 Cost of sales 120,000 Operating expenses 70,000 Interest expenses 5,000 Income taxes 10,000

Additional Information: Common stock is now selling at P25 per share 60% of sales were on account

The Average Ratios of the Industry are as follows:

Current Ratio 1.2 Times Interest earned 8 times Debt Ratio 45.5% Basic Earning Power 0.15 Inventory turnover 3.0 times Return on Equity 18% Market-Book Ratio 1.5 Operating Profit Margin 20% Quick Ratio 0.50 Inventory Conversion Period 120 days Price-Earnings Ratio 9 times Account Receivable turnover 5.5 times

Required: 1. Compute the ratios shown above for Mayang Inc. (show computation and a short explanation) 2. Using the Dupont formula, compute for the companys ROA and ROE. 3. Comment briefly on the performance of the company in terms of its liquidity, asset management, debt management, profitability and market value ratios as compared to the industry.

The president of Mayang inc. has been concomod about its operating performance and financial strenght. She has obtained from of DTI the average of certain ratios for the industry She gives you these malas and the companies comparative inancial statements for years 2017 and 2018 BALANCE SHEET. Two years ending December 31 2079 2008 Assets 14.000 10.000 Accounts Receivable 21.000 15.000 mentories 50,000 43.000 Prepaid Expenses 2,000 000 Property and Equipment 190.000 140.000 Accumulated Depreciation 165.000 154,000) long term investments 70.000 90.000 Total Assets P282,000 P 250,000 Labtes and Stockhoc Euty Accounts Payable P 20.000 P 25.000 Acid abilities 10.000 12.000 Owens Payati 18.000 Income tax Payati 36.000 31.000 Bonds Payable 50.000 40.000 Common Soc. POP 80,000 70.000 Retired Earings 67.000 54.000 19.000 Tots Lisbites and Stockholders' Equity P282.000 P250,000 INCOME STATEMENT"For the fiscal year ended December 31 2019 Sales P 230,000 Cost of sales 120.000 Operating expenses 70,000 Internet expenses 5.000 Income taxes 70,000 Additional Information Common stock is now seling P25 per share 60% of sales were on account The Average Ratios af te ndustry are as follows Current Ratio 1.2 Testerested 8 times Debt Ratio 45.5% Ba Camry Power 0.15 Inventory tumover 3.0 smes Return on Equity 18% Market-Book Ratio 1.5 Operating profit Mon 20% Quick Ratio 0.50 pering penses 70,000 Interest expenses 5.000 Income taxes 20,000 Adiction information Common stock is now selling at P25 per share 60% of sales were on account 209 The Averio Rios ofrecisty are as follows Currem Rio 12 Times interested times Der Ratio Basic Eaming Fower 0.15 Ivory umover 3.0 mes Retumon Equity 10% Marker-Book Ratio 1.5 Operating Profit Margin Quick Ratio 0.50 Inventory Conversion Period 120 days Price-Earrings Rio times Account Recewabletumover Required Computeration shown above for Mayang inc show computation and a short explanation 2. Using the Dupont formula compute for me Company SROA and ROE 3. Comment briefly on the performance of the company in terms of its louidity, asset management ditt moment profitability and market value rados os corred to the industry The president of Mayang inc. has been concomod about its operating performance and financial strenght. She has obtained from of DTI the average of certain ratios for the industry She gives you these malas and the companies comparative inancial statements for years 2017 and 2018 BALANCE SHEET. Two years ending December 31 2079 2008 Assets 14.000 10.000 Accounts Receivable 21.000 15.000 mentories 50,000 43.000 Prepaid Expenses 2,000 000 Property and Equipment 190.000 140.000 Accumulated Depreciation 165.000 154,000) long term investments 70.000 90.000 Total Assets P282,000 P 250,000 Labtes and Stockhoc Euty Accounts Payable P 20.000 P 25.000 Acid abilities 10.000 12.000 Owens Payati 18.000 Income tax Payati 36.000 31.000 Bonds Payable 50.000 40.000 Common Soc. POP 80,000 70.000 Retired Earings 67.000 54.000 19.000 Tots Lisbites and Stockholders' Equity P282.000 P250,000 INCOME STATEMENT"For the fiscal year ended December 31 2019 Sales P 230,000 Cost of sales 120.000 Operating expenses 70,000 Internet expenses 5.000 Income taxes 70,000 Additional Information Common stock is now seling P25 per share 60% of sales were on account The Average Ratios af te ndustry are as follows Current Ratio 1.2 Testerested 8 times Debt Ratio 45.5% Ba Camry Power 0.15 Inventory tumover 3.0 smes Return on Equity 18% Market-Book Ratio 1.5 Operating profit Mon 20% Quick Ratio 0.50 pering penses 70,000 Interest expenses 5.000 Income taxes 20,000 Adiction information Common stock is now selling at P25 per share 60% of sales were on account 209 The Averio Rios ofrecisty are as follows Currem Rio 12 Times interested times Der Ratio Basic Eaming Fower 0.15 Ivory umover 3.0 mes Retumon Equity 10% Marker-Book Ratio 1.5 Operating Profit Margin Quick Ratio 0.50 Inventory Conversion Period 120 days Price-Earrings Rio times Account Recewabletumover Required Computeration shown above for Mayang inc show computation and a short explanation 2. Using the Dupont formula compute for me Company SROA and ROE 3. Comment briefly on the performance of the company in terms of its louidity, asset management ditt moment profitability and market value rados os corred to the industry