Reference no: EM133182514

Question 1 - On December 31, 2020 and 2021, Finman Corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding.

Additional information:

Stockholders' equity at 12/31/2021 P4,500,000

Net income year ended 12/31/2021 P1,200,000

Dividends on preferred stock year ended 12/31/2021 P300,000

Market price per share of common stock at 12/31/2021 P144

Determine the price-earnings ratio on common stock at December 31, 2021?

Question 2 - ABC Company has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payment cycle of 26 days. If its sales for the period just ended amounted to P972,000, what is the investment in accounts receivable? (Assume 360 days a year.)