Professional Documents
Culture Documents
Section: ________________________________
1. Selected information from the accounting records of the Szessar Company is as follows:
2. The retained earnings of LA Corp. are P150,000 and P275,000, for the years 2014 and 2013
respectively. The net income for the year 2013 is P250,000. The preferred stockholder is to receive
10% of their equity. How much will be given to the common stockholder if the equity of the preferred
stockholder is P1,250,000.00?
a. P125,000
b. P0
c. P 62,500
d. none of the above
3. On January 1, 2013, FLT Company’s beginning inventory was P400,000.00. During 2013, FLT
Company purchased P1,900,000 of additional inventory. On December 31, 2013, the inventory was
P500,000. What is the inventory turnover for 2013?
a. 4.6
b. 3.8
c. 4.0
d. 3.6
4. Asar Corporation had a current ratio of 2.0 at the end of 2014. Current assets and current liabilities
increased by equal amounts during 2013. What are the effects on net working capital and on the
current ratio, respectively?
a. no effect; increase.
b. increase; increase
c. no effect; decrease.
d. decrease; decrease
5. At December 31, 2013, FLT Company had the following balances in the accounts it maintains at
CBC:
In its December 31, 2013 balance sheet, what amount should FLT report as cash and cash
equivalents?
a. P2,000,000
b. P1,500,000
c. P1,600,000
d. answer not given
6. The following figures are taken from Ethaniel Company’s financial statements for the calendar years
2013 and 2012:
2013 2012
Total assets P900,000 P750,000
Long-term debt (12% interest rate) 125,000
8% Preferred stocks, P100 par value 225,000 225,000
Total stockholders’ equity 600,000 550,000
Net income (after tax of 30%) 70,000
7. The condensed balance sheet as of December 31, 2014 of Friendster Corp. is given below:
Additional information:
Current ratio 1.9 to 1
Ratio of total liabilities to total stockholder’s equity 1.4
Inventory turnover based on sales and ending inventory 15 times
Inventory turnover based on cost of sales & ending inventory 10 times
Gross margin for 2014 P500,000
Required: Construct the balance sheet of Friendster Corporation as of December 31, 2013