The following ratios and other data pertain to the financial statements of the Bulacan Company for the year ended December 31 PDF

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Summary

The following ratios and other data pertain to the for the year ended December 31, 2007. financial statements of the Bulacan Company Current ratioAcid test ratio 1 to 11 to 1 Working capitalFixed assets to stockholders’ equity ratio P 33,000 to 1 Inventory turnover (based on cost of closing inventor...

Description

The following ratios and other data pertain to the financial statements of the Bulacan Company for the year ended December 31, 2007. Current ratio 1.75 to 1 Acid test ratio 1.27 to 1 Working capital P 33,000 Fixed assets to stockholders’ equity ratio .625 to 1 Inventory turnover (based on cost of closing inventory) 4X Gross profit percentage 40% Earnings per share P0.50 Average age of outstanding accounts receivable (based on calendar year of 365 days) 73 days Capital stock outstanding 20,000 no par value shares Earnings for the year as percentage of capital stock 25% The Company has no prepared expenses, deferred, intangible assets or long term liabilities.

Bulacan Company Income Statement For the Year Ended December 31, 2007

Sales Less: cost of good sold Gross margin Less: operating expenses Net income

140,800 84,480 56,320 46,320 10,000

Current assets Cash Account rec Inventory Total Current a Fixed assets Total assets

Current liabilit Accounts pa Total liabilitie Stockholders’ Share capita Retained ea Total stockho Total liabilitie Computation:

Outstanding capital stock

20,000.00

Multiply by: Earning per Share

0.50

Net income

10,000.00

Current ratio

1.75

less: Current Liabilities

1.00

Working Capital rate

0.75

Working Capital

33,000.00

Divided by: Rate

0.75

Current liabilities

44,000.00

Current liabilities

44,000.00

Multiply by: Current ratio

1.75

Current assets

77,000.00

Current liabilities

44,000.00

Multiply by: Acid test ratio

1.27

Quick assets

55,880.00

Current assets

77,000.00

Less: Quick assets

55,880.00

Inventory

21,120.00

Inventory turnover

4

Multiply by: Inventory

21,120.00

Cost of good sold

84,480.00

Net income Divided by: Earning for the year as % capital stock

10,000.00

Share Capital

40,000.00

Working capital Divided by:

33,000.00

Equity less Fixed assets (1.00-0.625)

0.375

Equity

88,000.00

Days per Year

365

Divided by: Average age of oustanding AR

73

Average age of Receivables

5

Cost of goods sold Divided by: rate

84,480.00 60%

SALES

140,800.00

Sales

140,800.00

Divided by: Average age of receivables

5

25%

Account Receivables

28,160.00

Current asssets Less:

77,000.00

Inventory

21,120.00

Account Receivables

28,160.00

CASH

27,720.00

Equity

88,000.00

Add: Liabilities

44,000.00

Total assets

132,000.00

Less: Current assets

77,000.00

Fixed Assets

55,000.00...