Liquid Company has the following information available at year end 2018:CashNotes payable (current) P40,000Common stockP140,000P500,000Gross incomePlant and Equipment, netTotal assetsP60,000P252,000P480,000Additional data:Current ratio 1.9:1.0Debt-to-equityInventory turnover based on (Sales divide by ending inventory)Inventory turnover based on (Cost of sales divide by ending inventory)1.4:1.015 times10 times Choices:a. P80,000 b. P60,000Answer:c. P100,00031. Retained earnings balance is:32. Accounts payable amounts to:33. Inventories amount to:34. Accounts receivable balance is:35. Total liabilities amount to:d. P68,000e. P280,000

Gross income is the income which has been earned by the company when the cost of goods sold which…

Answered: 31. Retained earnings balance is: 32.…

31. Retained earnings balance is: 32. Accounts payable amounts to: 33. Inventories amount to: 34. Accounts receivable balance is: 35. Total liabilities amount to:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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