Financial Statement Analysis Quiz

Gray Corporation’s financial statements for the last year are shown below. All figures are in thousands (P000). The firm paid
a P1, 000 dividends to its stockholders during the year. Two million shares of stock are outstanding. The stock is currently
trading at a price of P50. There were no sales of new stock. Lease payments totaling P400 are included in cost and expense.

Balance Sheet
Assets Liabilities & Equity
Cash P2, 000 Accounts Payable P3, 000
A/R 12, 000 Tax Payable 1, 000
Inventory 14, 000 Long Term Debt 10, 000
Fixed Assets 27, 000 Equity 25, 000
Acc. Depreciation (16,000)
Total Assets P39, 00 Total Liabilities & Equity 39, 000

Income Statement Compute for the following:

1. Current Ratio 12. Return on Assets
Sales P100, 000 2. Quick Ratio 13. Return on Equity
Cost of Sales ( 80, 000) 3. Average Collection Period 14. Price Earnings Ratio
Gross Margin 20, 000 4. Inventory Turnover 15. Market to book value ratio
Expenses (8, 000) 5. Fixed Asset Turnover
Depreciation (1, 600) 6. Total Asset Turnover
EBIT 10, 400 7. Debt Ratio
Interest ( 800) 8. Debt to Equity Ratio
EBT 9, 600 9. Times Interest Earned
Tax ( 2, 600) 10. Return on Sales
Net Income P 7, 000 11. Return on Sales

Financial Statement Analysis Quiz

Gray Corporation’s financial statements for the last year are shown below. All figures are in thousands (P000). The firm paid
a P1, 000 dividends to its stockholders during the year. Two million shares of stock are outstanding. The stock is currently
trading at a price of P50. There were no sales of new stock. Lease payments totaling P400 are included in cost and expense.

Balance Sheet
Assets Liabilities & Equity
Cash P2, 000 Accounts Payable P3, 000
A/R 12, 000 Tax Payable 1, 000
Inventory 14, 000 Long Term Debt 10, 000
Fixed Assets 27, 000 Equity 25, 000
Acc. Depreciation (16,000)
Total Assets P39, 00 Total Liabilities & Equity 39, 000

Income Statement Compute for the following:

1. Current Ratio 12. Return on Assets
Sales P100, 000 2. Quick Ratio 13. Return on Equity
Cost of Sales ( 80, 000) 3. Average Collection Period 14. Price Earnings Ratio
Gross Margin 20, 000 4. Inventory Turnover 15. Market to book value ratio
Expenses (8, 000) 5. Fixed Asset Turnover
Depreciation (1, 600) 6. Total Asset Turnover
EBIT 10, 400 7. Debt Ratio
Interest ( 800) 8. Debt to Equity Ratio
EBT 9, 600 9. Times Interest Earned
Tax ( 2, 600) 10. Return on Sales
Net Income P 7, 000 11. Return on Sales