FLORES, CAMILLE P.

BSTM 301

1. The Booboo Division

Operating Profit =P24, 950
Average Assets =P311, 900
Ending Assets= P24, 950 + x /2 = P311, 900
= 12, 475 + x /2 = 311, 900
= 311, 900 – 12, 475 = x /2
= 299, 425 = x /2
X = P598, 850

The Splint Division

Operating Profit = P17, 500
Average Assets = P177, 950
Ending Assets= P17, 500 + x /2 = P177, 950
= 8, 750 + x /2 = 177, 950
= 177, 950 – 8, 750 = x /2
= P169, 200 = x /2
X= 338, 400

The Intensive Care Division

Operating Profit = P28, 500
Average Assets = P475, 000
Ending Assets= P28, 500 + x /2 = P475, 000
= 14, 250 + x /2 = 475, 000
= 475, 000 – 14, 250 = x /2
= 460, 750 = x /2
X= P921, 500

The Booboo Division The Splint Division The Intensive Care Division
Beginning Assets 24, 950 17, 500 28, 500
Ending Assets 598, 850 338, 400 921, 500
Average Total Assets 311, 900 177, 950 475, 000
2. Average Total Assets = Beginning assets + Ending balance / 2
= P1,000,000 + P2,000,000 /2
= P3,000,000 /2
= P1, 500,000
Return on Assets = Income / Average Total Assets
= P20,000,000 / P1,500,000
= 13.3%

3. Debt Ratio = Total Liabilities / Total Assets

= P 25, 000 / P5, 000, 000
= 1/ 200