Question

Question 291 pts

Ward Corporation had net income of P2 million in 2018. Using the 2018 financial elements as the base data, net income decreased by 70% in 2019 and increased by 175% in 2020. The respective net income reported by Ward Corporation for 2019 and 2020 are:

Group of answer choices

P1,400,000 and P3,500,000

P1,400,000 and P5,500,000

P600,000 and P5,500,000

P5,500,000 and P600,000

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Question 301 pts

Eugene Store had net credit sales of P6,500,000 and cost of goods sold of P5,000,000 for the year. The accounts receivable balances at the beginning and end of the year were P600,000 and P700,000, respectively. The receivable turnover was

Group of answer choices

10.8 times

9.3 times

10.0 times

7.7 times

Question 81 pts

Which of these ratios are measures of a company’s asset utilization and liquidity?

1. Earnings per share
2. Current ratio
3. Return on sales
4. Debt-equity ratio
5. Return on assets
6. Inventory turnover
7. Receivables turnover
8. Price-earnings ratio

Group of answer choices

2, 3, 6, and 7 only

2, 6, and 7 only

All eight ratios

1, 3, 5, 6, 7, and 8 only

Answer 1

A	Year		Net income
	2018	Base	2000000
	2019	Decreased by 70%(2*.3)	600000
	2020	Increased by 175%(2+2*1.75)	5500000
	Correct answer	Option C
B		Credit sale	6500000
		COGS	5000000
		Opening A/R	600000
		Closing A/R	700000
		Average A/R ratio(Opening AR+closing AR)/2	650000
		Accounts receviable turnover ratio= Net credit sales/ Average account receviable	10	Times
		=6500000/650000
	Correct answer	Option C
C
		Current ratio
		Inventory turnover
		Reviable turnover

Correct answer

Option B