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    Amby Sanpedro
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    The document contains financial data for Fluffs Merchants for the year ended including total liabilities of Php 345,000, total equity of Php 360,000, interest expense of Php 10,000 and income tax expense of Php 20,000. It then calculates six financial ratios: debt ratio of 59.48%, current ratio of 168.11%, stockholders' ratio of 62.06%, operating profit margin of 28.12%, net profit margin of 18.75%, and return on assets of 10.34%.

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    Quiz-2

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    The document contains financial data for Fluffs Merchants for the year ended including total liabilities of Php 345,000, total equity of Php 360,000, interest expense of Php 10,000 and income tax expense of Php 20,000. It then calculates six financial ratios: debt ratio of 59.48%, current ratio of 168.11%, stockholders' ratio of 62.06%, operating profit margin of 28.12%, net profit margin of 18.75%, and return on assets of 10.34%.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    19 views3 pages

    Quiz 2

    Uploaded by

    Amby Sanpedro
    The document contains financial data for Fluffs Merchants for the year ended including total liabilities of Php 345,000, total equity of Php 360,000, interest expense of Php 10,000 and income tax expense of Php 20,000. It then calculates six financial ratios: debt ratio of 59.48%, current ratio of 168.11%, stockholders' ratio of 62.06%, operating profit margin of 28.12%, net profit margin of 18.75%, and return on assets of 10.34%.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    NAME: Luke Fredrick G.

    Fausto

    SECTION: BT102

    The following data are taken from the books of Fluffs Merchants for the year
    ended.

    Total Liabilities Php 345,000

    Total Equity 360,000

    Interest expense 10,000

    Income Tax expense (25%) 20,000

    Net Income 60,000

    Net Sales 320,000

    Gross Profit 144,000

    Average Total Assets 580,000

    Required: Compute the following ratios:

    1. Debt Ratio

    Liabilities / Assets

    = 345,000 / 580,000

    = 0.5948

    = 59.48 %
    2. Current Ratio

    Assets / Liabilities

    = 580,000 / 345,000

    = 1.6811

    = 168.11 %

    3. Stockholders Ratio

    Equity / Assets

    = 360,000 / 580,000

    = 0.6206

    = 62.06 %

    4. Operating Profit Margin

    Net Income + Income tax expense + Interest expense / Net Sales

    = 60,000 + 20,000 + 10,000 / 320,000

    = 90,000 / 320,000

    = 0.2812

    = 28.12 %

    Or:

    Convert 25%: 25/100 = 0.25


    = 60,000 + 0.25(20,000) + 10,000 / 320,000

    = 60,000 + 5,000+ 10,000 / 320,000

    = 75,000 / 320,000

    = 0.2343

    = 23.43%

    5. Net Profit Margin

    Net Income / Net Sales

    = 60,000 / 320,000

    = 0.1875

    = 18.75 %

    6. Return on Assets

    Net Income / Ave. Total Assets

    = 60,000 / 580,000

    = 0.1034

    = 10.34 %

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