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1st Week Output

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Abigail Esteban
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16 views

1st Week Output

Uploaded by

Abigail Esteban
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Current Assets :

Cash and Equivalents 100,000,000.00


Accounts Receivable
Inventory
Fixed (Long-term) Assets 283,500,000.00
Sales 1,000,000,000.00
Net Income 50,000,000.00
Current Liabilities 105,500,000.00
Notes Payable 20,000,000.00
Current Ratio 3.00
Days Sales Outstanding (DSO) Ratio 40.5515
(DSO based on 365 days year)
Return on Common Equity (ROE) 12.00%

a. DSO = (Accounts Receivable ∕ Sales) × 365


DSO = (AR × 365) ∕ Sales
40.5515 = (AR × 365) ∕ 1,000,000,000
AR = (40.5515 × 1,000,000,000) ∕ 365
AR = 40,551,500,000 ∕ 365
AR = ₱ 111,100,000.00

b. Current Ratio = Current Assets ∕ Current Liabilities


3 = CA ∕ 105,500,000
CA = 3 × 105,500,000
CA = ₱ 316,500,000.00

c. Total Assets = Current Assets + Fixed Assets


TA = 316,500,000 + 283,500,000
TA = ₱ 600,000,000.00

d. ROA = Net Income ∕ Total Assets


ROA = 50,000,000 ∕ 600,000,000
ROA = 0.083333333 or 8.33%

e. ROE = Net Income ∕ Common Equity


0.12 = 50,000,000 ∕ CE
0.12 × CE = 50,000,000
CE = 50,000,000 ∕ 0.12
CE = ₱ 416,666,666.67

f. Quick Ratio = (Current Assets − Inventories) ∕ Current Liabili es


Find first the value of Inventories:
CA = Cash + AR + Inventories
316,500,000 = 100,000,000 + 111,100,000 + Inventories
Invty = 316,500,000 − (100,000,000 + 111,100,000)
Invty = ₱ 105,400,000.00
QR = (CA − Inventories) ∕ CL
QR = (316,500,000 − 105,400,000) ∕ 105,500,000
QR = 2.00

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