The acid-test (quick) ratio

Select one:
a. Is the same as the current ratio except it is rounded to the nearest whole percent.
b. Is calculated by taking one item from the income statement and one item from the balance
sheet.
c. Is used to quickly determine a company's solvency and long-term debt paying ability.

d. Relates cash, short-term investments, and net receivables to current liabilities.

The current ratio is

Select one:
a. Used to evaluate a company's liquidity and short-term debt paying ability.
b. Calculated by dividing current liabilities by current assets.
c. Used to evaluate a company's solvency and long-term debt paying ability.

d. Calculated by subtracting current liabilities from current assets.

The Sampaguita Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.

 
End of current End of prior
  year year
Net sales revenue (all credit) Php 611,000  
Cost of goods sold Php 362,500  
Gross profit Php 247,500  
Selling/general expenses Php 140,000  
Interest expense Php 21,000  
Net Income Php 86,500  
     
Current assets Php 56,500 Php 41,000
Long-term assets Php 256,000 Php 220,000
Total assets Php 312,500 Php 261,000
Current liabilities Php 28,500 Php 26,000
Long-term liabilities Php 137,500 Php 122,500
Common stockholders' equity Php 146,500 Php 112,500
Total liabilities and stockholders'
equity Php 312,500 Php 261,000
Inventory and prepaid expenses account for Php 15,000 of the current year's current assets.
Average inventory for the current year is Php 18, 125.
Average net accounts receivable for the current year is Php 22,500.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were Php 8,500.
The market price per share of common stock is Php 10.
 
What is the rate of return on total assets for the current year?
Select one:
a. 30.17%
b. 0.53 %
c. 34.40%

d. 30.17%

San Miguel Corporation reported the following income statement and balance sheet amounts
and additional information for the end of the current year.

 
End of current End of prior
  year year
Net sales revenue (all credit) Php 610,000  
Cost of goods sold Php 362,500  
Gross profit Php 247,500  
Selling/general expenses Php 140,000  
Interest expense Php   21,000  
Net Income Php   86,500  
     
Current assets Php  56,500 Php 41,000
Long-term assets Php 256,000 Php 220,000
Total assets Php 312,500 Php 261,000
Current liabilities Php  28, 500 Php 26,000
Long-term liabilities Php 137,500 Php 122,500
Common stockholders' equity Php 146,500 Php 112,500
Total liabilities and stockholders'
equity Php 312,500 Php 261,000
 
Inventory and prepaid expenses account for Php 15,000 of the current year's current assets.
Average inventory for the current year is Php 18,125.
Average net accounts receivable for the current year is Php 22,500.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were Php 8,500.
The market price per share of common stock is Php 10.
 
What is the days' sales in receivables for the current year?
Select one:
a. 13.4631 days
b. 20 days
c. 27.11 days

d. 1.107 days

The Splash Corporation reported the following income statement and balance sheet amounts
and additional information for the end of the current year.

 
End of current End of prior
  year year
Net sales revenue (all credit) Php 611,000  
Cost of goods sold Php 362,500  
Gross profit Php 247,500  
Selling/general expenses Php 140,000  
Interest expense Php 21,000  
Net Income Php 86,500  
     
Current assets Php 56,500 Php 41,000
Long-term assets Php 256,000 Php 220,000
Total assets Php 312,500 Php 261,000
Current liabilities Php 28,500 Php 26,000
Long-term liabilities Php 137,500 Php 122,500
Common stockholders' equity Php 146,500 Php 112,500
Total liabilities and stockholders'
equity Php 312,500 Php 261,000
Inventory and prepaid expenses account for Php 15,000 of the current year's current assets.
Average inventory for the current year is Php 18,125.
Average net accounts receivable for the current year is Php 22,500.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were Php 8,500.
The market price per share of common stock is Php 10.
 
What is the times-interest-earned ratio for the current year?
Select one:
a. 4.12 times
b. 5.12 times
c. 1.00 times

d. 1.46 times