You are requested to reconstruct accounts of Angel Trading for analysis.

The following data were available to you:

Gross margin for 2012 amounts.................P800,000

Beginning balance of Merchandise Inventory..280,000

Long-term liabilities consisted of bonds

Payablewith interest rate of..........15%

Total Stockholders' Equity , Dec 31, 2012P 625,000

Gross margin ratio .......................................40%

Debt to equity ratio .....................................0.6 : 1

Times interest is earned .........................8

Quick ratio ...................................................1.5 :1

Ratio of operating expense to sales.............25%

1. The operating income for 2012 was

a.P 487,500 b. P 300,000 c. P 500,000 d. P 250,000

2. The bonds payable was

a.P 487,500b. P 300,000c. P 125,000d. P 250,000

3. Total current liabilities would amount to

a. P375,000b.P487,500c. P125,000d. P250,000

4. Total current assets would amount to

a. P187,500b.P387,500c. P467,500d.P427,500