1. The net sales of Grand Manufacturing Co.

in
1990 is total, P580,600. The cost of goods
manufactured is P480,000. The beginning
inventories of goods in process and finished goods
are P82,000 and P65,000, respectively. The
ending inventories are, goods in process, P75,000,
finished goods, P55,000. The selling expenses is
5%, general and administrative expenses 2.5% of
cost of sales, respectively. The net profit in the
year 1990 is?
a. P90,000 b. P45,725 c. P53,850 d. P83,000
2. In 19x5, MPX Corporation’s net
income was P800,000 and in 19x6 it was
P200,000. What percentage increase in
net income must MPX achieve in 19x7 to
offset the 19x6 decline in net income?

a. 60% b. 600% c. 400% d. 300%

3. Barr Co. has total debt of $420,000 and
shareholders’ equity of $700,000. Barr is seeking
capital to fund an expansion. Barr is planning to
issue an additional $300,000 in common stock,
and is negotiating with a bank to borrow additional
funds. The bank is requiring a debt-to-equity rate
of 0.75. What is the maximum additional amount
Barr will be able to borrow?

A. $225,000 B. $330,000 C. $525,000 D. $750,000

4. PerryTechnologies Inc.had the following
financial information for the past year:
Sales $860,000 Inventoryturnover 8x
Quickratio 1.5 Currentratio 1.75
What were Perry’s current liabilities?

a. $430,000 b. $500,000 c. $107,500 d. $61,429

5. A service company's working capital at the beginning of
January of the current year was $70,000. The following
transactions occurred during January:
Performed services on account $30,000
Purchased supplies on account 5,000
Consumed supplies 4,000
Purchased office equip. for cash 2,000
Paid short-term bank loan 6,500
Paid salaries 10,000
Accrued salaries 3,500
What is the amount of working capital at the end of
January?
A. $90,000 B. $80,500 C. $50,500 D. $47,500
6. The working capital of Regalado Co. is
P600,000 and its current ratio is 3 to 1. The
amount of current assets is

a. P900,000
b. P1,200,000
c. P600,000
d. P1,800,000
7. Blasso Co.’s net accounts receivable were
$500,000 at December 31, 2000 and
$600,000 at December 31, 2001. Net cash
sales for 2001 were $200,000. The accounts
receivable turnover for 2001 was 5.0. What
were Blasso’s total net sales for 2001?
a. $2,950,000
b. $3,000,000
c. $3,200,000
d. $5,500,000
8. During 1989, Rand Co. purchased $960,000 of
inventory. The cost of goods sold for 1989 was
$900,000, and the ending inventory at December
31, 1989 was $180,000. What was the inventory
turnover for 1989?
a. 6.4
b. 6.0
c. 5.3
d. 5.0
9. Last year's asset turnover ratio for Wuerffel
Airlines was 2.5. This year, sales increased
by 20% and average total assets increased
by 10%.What is the new asset turnover ratio?
A. 2.50
B. 2.59
C. 2.73
D. 3.00