Reference no: EM132757809
You are requested to reconstruct accounts of Angel Trading for analysis. The following data were available to you:
Gross margin for 2012 amounts................. P800,000
Beginning balance of Merchandise Inventory.. 280,000
Long-term liabilities consisted of bonds
Payable with interest rate of.......... 15%
Total Stockholders' Equity , Dec 31, 2012 P 625,000
Gross margin ratio ....................................... 40%
Debt to equity ratio ..................................... 0.6 : 1
Times interest is earned ............... .......... 8
Quick ratio ................................................... 1.5 :1
Ratio of operating expense to sales............. 25%
Problem 1. The operating income for 2012 was
a. P 487,500
b. P 300,000
c. P 500,000
d. P 250,000
Problem 2. The bonds payable was
a. P 487,500
b. P 300,000
c. P 125,000
d. P 250,000
Problem 3. Total current liabilities would amount to
a. P375,000
b. P487,500
c. P125,000
d. P250,000
Problem 4. Total current assets would amount to
a. P187,500
b. P387,500
c. P467,500
d. P427,500