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What was the net income before tax

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Question - You are requested to reconstruct the accounts of Medvedev Laboratory for analysis. The following data were made available for you:

Gross margin for 2020 P472,500

Ending balance of merchandise inventory P300,000

Total stockholders' equity as of December 31, 2020 P750,000

Gross margin ratio 35%

Debt to equity ratio 0.8 : 1

Times interest earned 10x

Quick ratio 1.3 : 1

Ratio of expenses to sales 18%

Long term liabilities consisted of bonds payable with interest rate of 20%

Required - Based on the information above, answer the following:

1. What was the net income before tax for 2020?

2. How much was the bonds payable?

3. Total current assets amounted to?

Reference no: EM133081508

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