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Business Finance Assignment:Do the activity in pairs: Business Finance Assignment:Do the activity in pairs:

Part I. Compute the Financial Ratios: Part I. Compute the Financial Ratios:

Part II. Compute the following: Part II. Compute the following:
1. Total asset is PHP750,000. Sales is PHP1,500,000. What is 1. Total asset is PHP750,000. Sales is PHP1,500,000. What is
the total asset turnover? the total asset turnover?
2. Accounts receivable turnover is 4. What is the average 2. Accounts receivable turnover is 4. What is the average
collection period assuming annual data are used? What is collection period assuming annual data are used? What is
the average collection period assuming quarterly data are the average collection period assuming quarterly data are
used? used?
3. Sales for the year amount to PHP100,000. Accounts 3. Sales for the year amount to PHP100,000. Accounts
receivable amount to PHP12,000. What is the average receivable amount to PHP12,000. What is the average
collection period assuming annual data are used? What is collection period assuming annual data are used? What is
the average collection period assuming quarterly data are the average collection period assuming quarterly data are
used? used?

Part III. Compute the following Part III. Compute the following:
A. The quick ratio is 1.7 while the current ratio is 2.5. The current A. The quick ratio is 1.7 while the current ratio is 2.5. The current
liabilities amount to PHP5,000. Cost of goods sold is PHP52,500. liabilities amount to PHP5,000. Cost of goods sold is PHP52,500.
What is the inventory turnover? Average age of inventory? What is the inventory turnover? Average age of inventory?
B. Beginning inventory is PHP2,000 while ending inventory is B. Beginning inventory is PHP2,000 while ending inventory is
PHP5,000. Cost of goods sold is double the ending inventory and PHP5,000. Cost of goods sold is double the ending inventory and
accounts payable is PHP4,000. What is accounts payable turnover? accounts payable is PHP4,000. What is accounts payable turnover?
Average payment period? Average payment period?
C. Ending inventory is PHP13,000 while accounts payable is C. Ending inventory is PHP13,000 while accounts payable is
PHP2,500. Purchases were half the ending inventory. What is PHP2,500. Purchases were half the ending inventory. What is
accounts payable turnover? Average age of payables? accounts payable turnover? Average age of payables?
D. Current assets amount to PHP30,000 while noncurrent assets are D. Current assets amount to PHP30,000 while noncurrent assets are
PHP50,000. Sales amount to PHP200,000. What is the total asset PHP50,000. Sales amount to PHP200,000. What is the total asset
turnover? E. Based on your answers from letters c, d, and e, what is turnover? E. Based on your answers from letters c, d, and e, what is
the operating cycle of the company? Cash conversion cycle? the operating cycle of the company? Cash conversion cycle?

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