Selected data from shyr companys year end financial

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Inventory turnover (based on cost of sales) 8 times Gross profit margin 40% Shyr’s net sales from the year were A. P800,000 C. P480,000 B. P1,200,000 D. P672,000
182. Salami Company has a total assets turnover of 0.30 and a profit margin of 10 percent. The president is unhappy with the current return on assets, and he thinks it could be doubled. This could be accomplished (1) by increasing the profit margin to 15 percent, and (2) by increasing the total assets turnover. What new asset turnover ratio, along with the 15 percent profit margin, is required to double the return on assets?
42. Delo Co. has a debt ratio of 0.50, a total assets turnover of 0.25, and a profit margin of 10%. The president is unhappy with the current return on equity, and he thinks it could be doubled. This could be accomplished (1) by increasing the profit margin to 14% and (2) increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the 14% profit margin, is required to double the return on equity?
Working Capital Finance Working Capital Financing Policy Conservative Financing Policy 183. As a company becomes more conservative with respect to working capital policy, it would tend to have a(n).
181. Selected data from Shyr Company’s year -end financial statements are presented below. The difference between average and ending inventory is immaterial. Current ratio 2.0 Quick ratio 1.5 Current liabilities P120,000 Aggressive Financing Policy 184. Jekel Company follows and aggressive financing policy in its working capital management while Michael Corporation follows a conservative financing policy. Which one of the following statements is correct? A. Jekel has low ratio of short-term debt to total debt while Michael has a high ratioof short- term debt to total debt
MANAGEMENT ADVISORY SERVICES CPA Review School of the Philippines Final Pre-board Examination April 16, 2005 Page 47 of 66 B. Jekel has a low current ratio while Michael has a high current ratio C. Jekel has less liquidity risk while Michael has more liquidity risk D. Jekel finances short-term assets with long-term debt while Michael finances short-term assets with short-term debt.

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