Reference no: EM132966805

Question - The following data represent selected information from the comparative income statement and balance sheet for Little CPA Company for the years ended December 31, 2020 and 2019:

2020 2019

Net Sales (all on credit) P370,000 P333,000

Cost of goods sold 160,000 150,000

Gross profit 210,000 183,000

Income from operations 95,000 87,000

Interest expense 8,000 8,000

Net income 70,000 57,000

Cash 10,000 14,000

Accounts receivable, net 30,000 25,000

Inventory 43,000 40,000

Prepaid expenses 5,000 7,000

Total current assets 88,000 86,000

Total noncurrent assets 112,000 104,000

Total current liabilities 70,000 60,000

Total noncurrent liabilities 40,000 45,000

Ordinary share capital, no par* 60,000 60,000

Retained earnings 30,000 25,000

Note: 10,000 ordinary shares have been issued and outstanding since the company was established. They had a market value of P90 per share at 12/31/20, and they were selling for P91.50 per share at 12/31/19.

Required -

1. What the current ratio for Little CPA Company at 12/31/20?

2. What the acid-test ratio for Little CPA Company at 12/31/19?

3. What the inventory turnover for the Little CPA Company for the year ended 12/31/20?

4. What the Little CPA's account receivable turnover for the year ended 12/31/20?

5. What the Little CPA's days' sales in receivables for the year ended 12/31/20?

6. What the Little CPA's debt ratio at 12/31/20?

7. What the Little CPA's times-interest-earned ratio for the year ended 12/31/20?

8. For the year ended 12/31/19, What the Little CPA's rate of return on net sales?

9. What the Little CPA's rate of return on total assets for the year ended 12/31/20?

10. What the Little CPA's rate of return of ordinary shareholders' equity for the year ended 12/31/20?

11. What the Little CPA's earnings per share for the year ended 12/31/20?

12. What the Little CPA's price / earnings ratio at 12/31/20?