It’s a tool that assesses a company’s long-term financial stability and its ability to meet long-term debt obligations.

The excess of current assets over current liabilities is called:

This measures the elapsed time from when inventory is received from suppliers to when cash is received from customers.

Which of the following is the most of interest to a firm’s suppliers?

A measure of a company’s immediate short-term liquidity is the

A measure of how efficiently a company uses its assets to generate sales is the

The debt ratio indicates:

A times interest earned ratio of 0.90 to 1 means that

Stockholders are most interested in evaluating

Problem Alert, please provide your solution. “During 2023, Chloe Company purchased P960,000 of inventory. The cost of goods sold for 2023 was P900,000, and the ending inventory at December 31, 2023 was P360,000. What was the inventory turnover for 2023?”

Problem Alert, please provide your solution. “Pine Hardware Store had net credit sales of P6,500,000 and cost of goods sold of P5,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were P600,000 and P800,000, respectively. The receivables turnover was:”

Problem Alert, please provide your solution. “Batik Clothing Store had a balance in the Accounts Receivable account of P390,000 at the beginning of the year and a balance of P410,000 at the end of the year. The net credit sales during the year amounted to P4,000,000. Using a 360-day year, what is the average collection period of the receivables?”

Problem Alert, please provide your solution. “Net sales are P6,000,000, beginning total assets are P2,800,000, and the asset turnover is 3.0. What is the ending total asset balance?”

Problem Alert, please provide your solution. “The times interest earned ratio of Mikoto Company is 4.5 times. The interest expense for the year was P20,000, and the company’s tax rate is 40%. The company’s net income is:”

Problem Alert, please provide your solution. “Given the following information: Accounts payable P145,000 Accounts receivable 110,000 Accrued liabilities 4,000 Cash 80,000 Income tax payable 10,000 Inventory 140,000 Marketable securities 250,000 Notes payable, short-term 85,000 Prepaid expenses 15,000 The amount of working capital for the company is:”

Problem Alert, please provide your solution. “Given the following information: Accounts payable P145,000 Accounts receivable 110,000 Accrued liabilities 4,000 Cash 80,000 Income tax payable 10,000 Inventory 140,000 Marketable securities 250,000 Notes payable, short-term 85,000 Prepaid expenses 15,000 The company’s acid-test ratio as of the balance sheet date is:”

Problem Alert, please provide your solution. “Milward Corporation’s books disclosed the following information for the year ended December 31, 2024: Net credit sales P1,500,000 Net cash sales 240,000 Accounts receivable at beginning of year 200,000 Accounts receivable at end of year 400,000 Milward’s accounts receivable turnover is:”

Problem Alert, please provide your solution. “Jordan Manufacturing reports the following capital structure: Current liabilities P100,000 Long-term debt 400,000 Deferred income taxes 10,000 Preferred stock 80,000 Common stock 100,000 Premium on common stock 180,000 Retained earnings 170,000 What is the debt ratio?”

Problem Alert, please provide your solution. “How much is the company’s cost of service if the gross margin ratio is 40% of P1,000,000 service revenue?”