1.

A company reports the following:

Net sales P450,000
Average accounts receivable 37,500
How much is the accounts receivable turnover?

2. A company reports the following:

Net sales P450,000
Average accounts receivable 37,500
How much is the no. of days sales in receivable?

3. A business received an offer from an exporter for 10,000 units of product at P16 per unit. The acceptance
of the offer will not affect normal production or domestic sales prices. The following data are available:

Domestic unit sales price P20

Unit manufacturing costs:
Variable 13
Fixed 1
What is the differential revenue from the acceptance of the offer?

4. A business received an offer from an exporter for 10,000 units of product at P16 per unit. The acceptance
of the offer will not affect normal production or domestic sales prices. The following data are available:

Domestic unit sales price P20

Unit manufacturing costs:
Variable 13
Fixed 1
What is the differential cost from the acceptance of the offer?

5. Zale Corporation’s accumulated depreciation-equipment increased by P8,000, while patents decreased

by P35,000 between balance sheet dates. There were no purchases or sales of depreciable or intangible
assets during the year. In addition, the income statement showed a loss of P6,000 from the sale of
investments. Zale Corporation’s net income is P90,000. How much is the net cash flow from operating
activities?.

6. Nordic Corporations’ accumulated depreciation-furniture increased by P3,500, while patents decreased

by P1,800 between balance sheet dates. There were no purchased or sales of depreciable or intangible
assets during the year. In addition, the income statement showed a gain of P12,500 from the sale of
land. Net income of Nordic Corporation is P125,000. How much is the net cash flows from operating
activities?

7. The expected average rate of return for a proposed investment of P600,000 in a fixed asset, with a useful
life of four years, straight-line depreciation, no residual value, and an expected total net income of
P216,000 for the 4 years, is?

8. The amount of the average investment for a proposed investment of $60,000 in a fixed asset, with a useful
life of four years, straight-line depreciation, no residual value, and an expected total net income of
P21,600 for the 4 years, is?
9. The Delph Company produces two products, Blinks and Dinks. They are manufactured in two
departments, Fabrication and assembly. Data for the products and departments are listed below.
Number of Labor hrs Machine hours per
Product units per unit unit
Blinks 1,000 4 5
Dinks 2,000 2 8

All of the Machine hours take place in the Fabrication department, which has an estimated overhead of
P84,000. All of the labor hours take place in the Assembly department, which has an estimated total
overhead of P72,000.

The Delph Company uses a single overhead rate to apply all overhead costs based on labor hours. What
is the overhead cost per unit for Blinks?

10. The following items are reported on a company’s balance sheet

Cash P125,000
Marketable securities 40,000
Accounts receivable 30,000
Inventory 120,000
Accounts payable 150,000

How much is the current ratio?

11. The amount of the average investment for a proposed investment of $60,000 in a fixed asset, with a
useful life of four years, straight-line depreciation, no residual value, and an expected total net income of
P21,600 for the 4 years, is?

12. A business received an offer from an exporter for 10,000 units of product at P16 per unit. The acceptance
of the offer will not affect normal production or domestic sales prices. The following data are available:

Domestic unit sales price P20

Unit manufacturing costs:
Variable 13
Fixed 1
What is the differential revenue from the acceptance of the offer?