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The document details the transactions of Obispo's Industrial Spray Service for April 2007, including cash investments, purchases, and expenses. It also presents the financial position and comprehensive income statements of Traders Company for the years 2016 and 2017, highlighting changes in assets, liabilities, and equity. Additionally, it outlines the computation of various financial ratios for both years.

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Cherry Cielo
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22 views2 pages

Set A

The document details the transactions of Obispo's Industrial Spray Service for April 2007, including cash investments, purchases, and expenses. It also presents the financial position and comprehensive income statements of Traders Company for the years 2016 and 2017, highlighting changes in assets, liabilities, and equity. Additionally, it outlines the computation of various financial ratios for both years.

Uploaded by

Cherry Cielo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Business Finance

SET A
Lito Obispo started Obispo’s Industrial Spray Service on April 1,2007.During April,Obispo completed the
following transactions:
a.Invested cash in the business P60,000.
b. Bought a service vehicle from Lacson Motors for 112,500,paying P22,500 in cash ,with the remainder due in
thirty days.
c.Bought spray equiplment on account from Giron Company,P18,000.
d.Paid rent for the month,P5,600.
e.Paid cash for insurance on service vehicle for the year,P 5,760
f.Received cash for spray services done on a building,P21,750.
g.Bought supplies for cash,P 5,730 Note:
h.Billed customers on account for services performed.P4,440.
1. Make a Journal Entry
i.Paid cash for utilities,P960 2. Make a T-account
3. And Trial Balance
j.Received cash from service rendered.P16,420
k.Obispo withdrew cash for personal use,P10,500
l.Paid salaries to employees ,P20,400.

Traders Company
Statement of Financial Position
December 2016 and 2017

Currents Assets 2016 2017


Cash and cash equivalents 8,000 11,000
Trade and other receivables 114,000 139,000
Inventory 310,000 240,000
Prepaid Expenses 10,500 8,500
Total Current Assets 442,500 398,500

Non -Current Assets


Property ,Plant and Equipment 2,000,000 1,400,000
Investment in stocks 400,000 400,000
Total non-current assets 2,400,000 1,800,000
TOTAL ASSETS 2,842,50 2,198,500
0

Current Liabilities
Trade and other payables 119,000 100,000
Other current liabilities 55,000 40,000
Total current liabilities 174,000 140,000

Non-Current Liabilities
Bonds Payable-10% 560,000 600,000
Total LIABILITIES 734,000 740,000

Owner’s Equity
Traders ,Capital 2,108,50 1,458,500
0
Total Liabilities & Owner’s Equity 2,84 2,198,500
2,50
0

Traders Company
Statement of Comprehensive Income
December 2016 and 2017

Net Sales 1,700,000 1,500,000


Cost of Sales 1,050,000 800,000
Selling Expenses 190,000 180,000
Administrative Expense 100,000 120,000
Total 1,340,000 1,100,000
Operating Income 360,000 400,000
Interest Expense 55,000 50,000
Interest before Tax 305,000 350,000
Income Tax-30% 91,500 105,000
Income after Tax 213,500 245,000

Compute for the following ratio for 2016 and 2017:

1.Current Asset Ratio

2.Quick Ratio

3.Receivable Turn over

4.Invetory Turnover

5.Debt Ratio

6.Equity Ratio

6.Debt-to-Equity Ratio

7.Times Interest Earned

8.Gross Profit Rate

9.Operating Profit Margin

10.Net Profit Margin

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