Part 1 You have P10,000 to invest. You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one will produce the largest sum at the end of 22 years? An account that compounds interest. please explain1.1 Annually1.2 Daily1.3 Quarterly1.4 Monthly2. The company is setting aside funds to acquire a property for its new warehouse. The company needs P74,735 to make the down payment. The company deposits P5,000/month in the fund account which pays 1% per month. As the financial manager you have been tasked to determine how long it will take to accumulate enough funds to acquire the property?3. Suppose you are 40 years old and plans to retire in exactly 20 years. Twenty one years from now you will need to withdraw P50,000 per year from your retirement fund to add to your SSS pension. Assume you are to live for 85 years, how much money should you place in the retirement fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year form the fund? Part 2 4.1 Compute the ratios that measure, liquidity, asset utilization, debt utilization and profitability.4.2 Analyze, interpret, and draw conclusion based on the results of your computations. InventoryAssetsCurrent AssetsCash & Cash EquivalentHeld for TradingTrade and Other ReceivablesTotal Current AssetsTOTAL ASSETSNon Current AssetsProperty, Plan & EquipmentInvestment in Equity SecuritiesTotal Non-current AssetsLiabilities and Shareholders EquityCurrent liabilitiesTrade & Other PayablesUnearned RevenuesNotes Payable-currentTotal current liabilitiesTREN CorporationComparative Statements of Financial PositionDecember 31, 2015(in Thousand pesosNon-Current LiabilitiesNotes Payable- non-currentTotal LiabilitiesShareholders' EquityOrdinary Shares, P100 parPremium on Ordinary SharesTotal paid-in-capitalRetained EarningsTotal Shareholders' EquityTOTAL LIABILITIES &SHAREHOLDERS' EQUITY2015201424,890 2,12010,00016,000 6,0008,960 10,60059,850 18,720150,000 161,28016,000 20,000166,000 181,280225,850 200,000201520148,400 3,35010,60011,65090060019,90015,60073,550 100,00093,450 115,60080,000 60,00016,000 10,00096,000 70,00036,400 14,400132,400 84.400225,850 200,000 SalesLess: Cost of good soldGross IncomeAdd: Other IncomeTotal IncomeLess: Other ExpensesFinance Costs (Interest)Total ExpensesNet Income before taxesLess: Income TaxNet Income after Taxes20152014480,000 400,000364,000 280,000116,000 120,00015,000 9,600131,000 129,60012,40014,40019,00026,800 19,000104,200 110,60032,334 35,39271,866 75,2084.1 Compute the ratios that measure, liquidity, asset utilization, debt utilizationand profitability.4.2 Analyze, interpret, and draw conclusion based on the results of your computations.

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Answered: Part 1 You have P10,000 to invest.…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 14E

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Question

Part 1

You have P10,000 to invest. You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one will produce the largest sum at the end of 22 years? An account that compounds interest. please explain

1.1 Annually

1.2 Daily

1.3 Quarterly

1.4 Monthly

2. The company is setting aside funds to acquire a property for its new warehouse. The company needs P74,735 to make the down payment. The company deposits P5,000/month in the fund account which pays 1% per month. As the financial manager you have been tasked to determine how long it will take to accumulate enough funds to acquire the property?

3. Suppose you are 40 years old and plans to retire in exactly 20 years. Twenty one years from now you will need to withdraw P50,000 per year from your retirement fund to add to your SSS pension. Assume you are to live for 85 years, how much money should you place in the retirement fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year form the fund?

Part 2

4.1 Compute the ratios that measure, liquidity, asset utilization, debt utilization and profitability.

4.2 Analyze, interpret, and draw conclusion based on the results of your computations.

Inventory
Assets
Current Assets
Cash & Cash Equivalent
Held for Trading
Trade and Other Receivables
Total Current Assets
TOTAL ASSETS
Non Current Assets
Property, Plan & Equipment
Investment in Equity Securities
Total Non-current Assets
Liabilities and Shareholders Equity
Current liabilities
Trade & Other Payables
Unearned Revenues
Notes Payable-current
Total current liabilities
TREN Corporation
Comparative Statements of Financial Position
December 31, 2015
(in Thousand pesos
Non-Current Liabilities
Notes Payable- non-current
Total Liabilities
Shareholders' Equity
Ordinary Shares, P100 par
Premium on Ordinary Shares
Total paid-in-capital
Retained Earnings
Total Shareholders' Equity
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY
2015
2014
24,890 2,120
10,000
16,000 6,000
8,960 10,600
59,850 18,720
150,000 161,280
16,000 20,000
166,000 181,280
225,850 200,000
2015
2014
8,400 3,350
10,600
11,650
900
600
19,900
15,600
73,550 100,000
93,450 115,600
80,000 60,000
16,000 10,000
96,000 70,000
36,400 14,400
132,400 84.400
225,850 200,000

Sales
Less: Cost of good sold
Gross Income
Add: Other Income
Total Income
Less: Other Expenses
Finance Costs (Interest)
Total Expenses
Net Income before taxes
Less: Income Tax
Net Income after Taxes
2015
2014
480,000 400,000
364,000 280,000
116,000 120,000
15,000 9,600
131,000 129,600
12,400
14,400
19,000
26,800 19,000
104,200 110,600
32,334 35,392
71,866 75,208
4.1 Compute the ratios that measure, liquidity, asset utilization, debt utilization
and profitability.
4.2 Analyze, interpret, and draw conclusion based on the results of your computations.

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