Rochelle Corporation’s financial statements are as follows: Rochelle Corporation Comparative Balance Sheet (pesos in millions) This Year ASSETS Current assets: Cash Marketable securities Accounts receivable Inventories Other current assets Total current assets Property and equipment, net Other assets Total assets P P LIABILITIES AND STOCKHOLDER’S EQUITY Current liabilities: Accounts payable Short-term bank loans Accrued payables Other current liabilities Total current liabilities Long-term liabilities Total liabilities Stockholder’s equity: Common stock and additional paid-in capital Retained earnings Total stockholder’s equity Total liabilities and stockholder’s equity P P Last Year 281 157 288 692 278 1,696 2,890 758 5,344 P 391 710 757 298 2,156 904 3,060 P 40 2,244 2,284 5,344 P P Rochelle Corporation Income Statement (pesos in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses: Store operating expenses Other operating expenses Depreciation and amortization P This Year 9,411 3,999 5,412 3,216 294 467 313 141 224 636 216 1,530 2,288 611 4,429 341 700 662 233 1,936 265 2,201 40 2,188 2,228 4,429 General and administrative expenses Total selling and administrative expenses Net operating income Plus interest and other income Interest expense Net income before taxes Income taxes (about 36%) Net income P 489 4,466 946 110 0 1,056 384 672 Required: 1. 2. 3. 4. 5. 6. 7. 8. 9. Compute the return on total assets. Compute the return on equity. Compute the current ratio. Compute the acid-test ratio. Compute the inventory turnover. Compute the average sale period. Compute the debt-to-equity ratio. Compute the total asset turnover. Compute the net profit margin percentage. 1. Return on total assets: πππ‘ ππππππ+[πΌππ‘ππππ π‘ ππ₯ππππ π π₯ (1−πππ₯ πππ‘π)] Return on total assets = π΄π£πππππ π‘ππ‘ππ ππ π ππ‘π 2. Return on equity: πππ‘ ππππππ Return on equity = π΄π£πππππ π π‘πππβπππππ′ π πππ’ππ‘π¦ 3. Current ratio: πΆπ’πππππ‘ ππ π ππ‘π Current ratio = πΆπ’πππππ‘ ππππππππ‘πππ 4. Acid-test ratio: Acid-test ratio = πΆππ β+ππππππ‘ππππ π πππ’πππ‘πππ +π΄ππππ’ππ‘π ππππππ£ππππ+πβπππ‘−π‘πππ πππ‘ππ ππππππ£ππππ πΆπ’πππππ‘ ππππππππ‘πππ 5. Inventory turnover: πΆππ π‘ ππ πππππ π πππ Inventory turnover = π΄π£πππππ πππ£πππ‘πππ¦ πππππππ 6. Average sale period: Average sale period = 365 πππ¦π πΌππ£πππ‘πππ¦ π‘π’ππππ£ππ 7. Debt-to-equity ratio: πππ‘ππ ππππππππ‘πππ Debt-to-equity ratio = ππ‘πππβπππππ′ π πππ’ππ‘π¦ 8. Total asset turnover: πππππ Total asset turnover = π΄π£πππππ π‘ππ‘ππ ππ π ππ‘π 9. Net profit margin percentage: Net profit margin percentage = πππ‘ ππππππ πππππ