Abao, CPA
Gordon College Exercises 2
Problem 1
Mailene Corp. provided you the following data for your review:
Required:
1. Current Ratio
2. Quick Asset Ratio
Problem 2
The following information were provided by Claire Company to retrieve missing data needed in financial reporting:
Required:
1. Inventories
2. Accounts receivable
3. Marketable securities
4. Debt Ratio
Problem 3
Financial data on December 31, 2015 from Mapa-Abao Company are presented below:
Required:
1. Return on Total Assets (ROA)
2. Return on Equity
a. Cumulative Preference Shares
b. Non-cumulative Preference Shares
Problem 4
Below are data extracted from the financial records of PinkyClaire Corporation on December 31, 2015:
2015 2014
Cash 350,000 600,000
Accounts receivable (net) 1,300,000 1,800,000
Inventories 1,500,000 1,900,000
PPE (net) 6,000,000 5,500,000
Total liabilities 4,000,000 3,300,000
Retained earnings 1,200,000 800,000
Sales 20,500,000 18,000,000
Additional data:
Outstanding ordinary shares by year-end is 50,000 shares. Cumulative Preference Shares Capital with fixed rate of return of 5%
amounted to P1,000,000 and these shares were purchased way back 2013 at a 30% premium.
2015 net income is P750,000.
Current market price in stock exchange is P70 per share. Total Asset Turnover for 2015 and 2014 are 2 times and 1.8 times,
respectively. Total asset at the end of 2013 is equal to 2014 year-end total asset balance.
Required:
1. ROA
2. ROE
3. Earnings per share
4. Dividend yield ratio
5. Dividend payout ratio
6. Price earnings ratio
Problem 5
The following ratio are extracted from Mapa Company to determine below required information:
ROA 8% Retained earnings 1,800,000
Price earnings ratio 10 times Shareholders’ equity 4,000,000
Dividend payout ratio 0.40 Outstanding shares 20,000 shares
Asset turnover 2 times
Cash 450,000
Debt/Equity ratio 50%
Required:
1. Net income
2. Dividends per share
3. Market price per share