DAVID Corporation

Statement of Financial Position

Comparative Analysis
December 31, 2023 and 2022
(Php in thousands)

Increase (Decrease)
2023 2022 2023 2022
ASSETS
Cash 600 400
Accounts receivable 2,900 2,600
Inventories 1,000 1,200
Long-term investments 2,200 2,000
Property and equipment 4,400 4,000
Other assets 400 0
Total assets 11,500 10,200

LIABILITIES AND EQUITY

Accounts payable 3,500 3,000
Bonds payable 400 500
Discount on bonds payable (18) (20)
Common stock 3,200 3,100
Additional paid-in capital 2,200 2,000
Retained earnings 2,218 1,620
Total Liabilities and equity 11,500 10,200

CHARM Corporation and MAINE Corporation

Comparative Income Statements
For the Year Ended, December 31, 20X1
(Php in thousands)

Charm Maine Charm Maine

Corporation Corporation Corporation Corporation
Gross sales 203,600 3,400
Less: Sales returns and allowances (3,600) (400)
Net Sales 200,000 3,000
Less: Cost of goods sold (160,000) (1,000)
Gross profit 40,000 2,000
Less: Operating expenses (10,000) (500)
Operating income 30,000 1,500
Less: Interest expense (3,000) (200)
Income before income tax 27,000 1,300
Less: Income tax (10,800) (520)
Net income 16,200 780
Comprehensive Problem:
MNO Printing Co.
Statement of Financial Position
December 31, 2023 and 2022
(Php in thousands)

2023 2022
Assets
Cash 3,000 4,500
Accounts receivable 13,000 8,000
Inventories 6,500 5,000
Prepaid expenses 1,000 1,200
Total current assets 23,500 18,700
Net plant and equipment 31,000 25,000
Total Assets 54,500 43,700

Liabilities and Shareholders' Equity

Accounts payable 4,500 3,600
Notes payable 3,700 3,500
Accrued payables 2,000 2,300
Total current liabilities 10,200 9,400
Long-term debt 16,000 8,500
Total liabilities 26,200 17,900
Shareholders' equity 28,300 25,800
Total Liabilities and Shareholders' Equity 54,500 43,700

Ratio 2023 2022 Industry Average

Current ratio 2.5 times
Quick ratio 1.3 times
Accounts receivable turnover 10.2 times
Average collection period 35.3 days
Inventory turnover 6.8 times
Fixed asset turnover 4.0 times
Total asset turnover 2.1 times
Debt ratio 40.0 percent
Debt-equity ratio 66.7 percent
Times interest earned 5.8 percent
Net profit margin 5.0 percent
Return on investment 10.5 percent
Return on equity 17.5 percent
Financing Ratios
The data were taken from the financial records of East Company and West Company on December 31, 2023:
(in thousands)

East Co. West Co.

Debt 200,000 300,000
Stockholders' Equity 300,000 200,000
Total Equity 500,000 500,000

Preferred Dividends 1,000 3,000

Common stockholders' equity 200,000 150,000

Earnings before interest and tax 10,000 12,000

Interest expense (2,000) (6,000)
Income before income tax 8,000 6,000
Income tax (40%) (3,200) (2,400)
Income tax 4,800 3,600

Required:
1. Debt ratio

2. Equity ratio

3. Debt-equity ratio

4. Equity multiplier

5. Times interest earned

6. Financial leverage
Profitability Ratios
Horizon, Inc. provided the following selected financial information relative to the 2007 operations (in thousands)
Contribution margin 40,000
Fixed costs and expenses (28,000)
Earnings before interest and tax 12,000
Interest expense (2,000)
Income before tax 10,000
Tax (30%) (3,000)
Net income 7,000
Preferred dividends (10% x P60 x 20,000 shares) (120)
Earnings available to common stockholders 6,880

Average total assets 20,000

Average stockholders' equity 8,400
Liquidation value of preferred stock 80 per share
Net sales (after sales returns of P500,000) 350,000

Calculate:
1. Return on sales

2. Return on assets

3. Return on stockholders' equity

4. Return on common stockholders' equity

5. Times preferred dividend earned

6. Earnings per share

7. Degree of operating leverage

DuPont Disaggregation Analysis

Growth Ratios
The following comparative data were taken from the records of Mindoro Corporation and Tarlac Corporation on
December 31, 2006:

Earnings per share

Market price per share
Dividend per share
Net stockholders' equity
Preferred stock at par
Preferred shares outstanding

The preferred shares have a liquidation value of P120 and P150 for Mindoro Corporation and Tarlac Corporation,
respectively.

Required:
1. Price-earnings ratio

2. Payout ratio

3. Yield ratio

4. Book value per preferred share

5. Book value per common share

Liquidity Ratios
The records of JS Corporation and DV Corporation revealed the following data in relation to its operating activities
in 2023 (in thousands):
JS Corporation DV Corporation
Net cash sales 10,000 45,000
Net credit sales 190,000 240,000
Cost of goods sold 110,000 180,000
Net cash purchases 5,000 20,000
Net credit purchases 96,000 112,000
Average trade receivables 9,500 16,000
Average inventories 2,750 7,200
Average trade payables 2,400 3,500
Cash operating expenses 18,000 17,600
Average cash 600 800
Average total assets 80,000 95,000
Suppliers' credit terms 2/10, n/30 2/10, n/30

Required:
1. Calculate the following ratios for JS Corporation and DV Corporation in 2023 (use-360-day year):
a. Inventory turnover and inventory days

b. Receivables turnover and collection period

c. Payables turnover and payment period

d. Operating cycle

e. Net cash cycle

f. Net working capital

g. Working capital turnover

h. Cash turnover and days in operating expense

i. Assets turnover