Answer : Ratio Analysis Problem

Filipinas Industries Inc. (in million pesos)

Solutions:
1. Accounts Receivable
1 Day Sales =

1 Day Sales =

Days' Sales in Receivable =

40
=
1
40(2.74) =
109.59 =
2
x =

2. Current Liabilities
Quick Ratio =
2 =
1
2x =
2x =
2
x =

3. Current Assets
Current Ratio =
3 =
1
x =
x =

4. Total Assets =
Total Assets =

Total Assets =
s)

Net Sales/365 days

1000
365
2.74

Ave. Net Accts. Receivables/1 Day Sales

2x
2.74
1(2x)
2x
2
54.79

Quick Assets/Current Liabilites

100+54.79
x
1(154.79)
154.79
2
77.40

Current Assets/ Current Liabilities

x
77.40
3(77.40)
232.20

Current Assets + Fixed Assets

232.20 + 283.5
515.70
5. Return on Assets
Return on Asset =
=

=
Return on Asset =

6.Common Equity
Return on Equity =

0.12 =
1
0.12(2x) =
0.24x =
0.24
x =

7. Long Term Debt

Total Assets
Less:
 Net Income + Interest Expense/Average Total Assets
50
515.70/2
50/257.85
19.39%

Net Income-Preferred Dividends

Ave. Common Stockholders Equity
50
2x
50
50
0.24
208.33

515.70
Current Liabilities -77.40
Common Stockholder's Equity -208.33
Net Income -50.00
Long Term Debt 179.97