Reference no: EM132498982

The following selected information from the comparative financial statements of Elly Company for the year ended December 31:

                                                                   Year 2                               Year 1

Accounts Receivable (net)                  P175,000                     P200,000

Inventory                                         130,000                        150,000

Total Assets                                      1,100,000                      800,000

Current Liabilities                                140,000                        110,000

Long-term debt                                   410,000                      300,000

Net credit sales                                   800,000                      700,000

Cost of goods sold                              600,000                        530,000

Interest expense                                   40,000                         25,000

Income tax expense                               60,000                         29,000

Net Income                                       150,000                           85,000

Instructions: Answer the following questions relating to the year ended December 31, year 2. Show computations.

Question 1. The inventory turnover ratio for Year 2 is

Question 2. The number of times interest earned ratio in Year 2 is

Question 3. The receivables turnover ratio for Year 2 is

Question 4. The return on assets ratio for Year 2 is