FINANCIAL STATEMENT ANALYSIS

Integrated Review 2

The Statement of Financial Position and Statement of Financial Performance shown below are for Pizza
Corporation. Note that the firm has no amortization charges, it does not lease any assets, none of its
debt must be retired during the next 5 years, and the notes payable will be rolled over.

Statement of Financial Position

Assets 2019
Cash and cash equivalents ₱1,554,000,000
Accounts receivable 9,660,000,000
Inventories 13,440,000,000
Total current assets ₱24,654,000,000
Net plant and equipment 17,346,000,000
Total assets ₱42,000,000,000
Liabilities and Equity
Accounts payable ₱7,980,000,000
Notes payable 5,880,000,000
Accrued Liabilities 4,620,000,000
Total current liabilities ₱18,480,000,000
Long-term bonds 10,920,000,000
Total liabilities ₱29,400,000,000
Ordinary shares 3,360,000,000
Retained earnings 9,240,000,000
Total common equity ₱12,600,000,000
Total liabilities and equity ₱42,000,000,000
Statement of Financial Performance 2019
Net sales ₱58,800,000,000
Operating costs except depreciation ₱54,978,000,000
Depreciation ₱1,029,000,000
Earnings before interest and taxes ₱2,793,000,000
Less: interest 1,050,000,000
Earnings before taxes ₱1,743,000,000
Less: Taxes ₱610,100,000
Net income ₱1,132,900,000
Other data:
Shares outstanding 175,000,000 shares
Dividends declared ₱509,830,000
Interest rate on notes payable & long-
6.25%
term bonds
Income tax rate 35%
Year-end stock price ₱77.69

1. What is the firm's Current Ratio?

a. 0.97
b. 1.08
c. 1.20
d. 1.33
e. 1.47
2. What is the firm's Quick Ratio?
a. 0.49
b. 0.61
c. 0.73
d. 0.87
e. 1.05
3. What is the firm's Days Sales Outstanding? Assume a 360-day year for this calculation.
a. 48.17
b. 50.71
c. 53.38
d. 56.19
e. 59.14
4. What is the firm's Total Assets Turnover?
a. 0.90
b. 1.12
c. 1.40
d. 1.68
e. 2.02
5. What is the firm's Inventory Turnover Ratio?
a. 4.38
b. 4.59
c. 4.82
d. 5.06
e. 5.32
6. What is the firm's Times Interest Earned?
a. 1.94
b. 2.15
c. 2.39
d. 2.66
e. 2.93
7. What is the firm's Debt Ratio?
a. 45.93%
b. 51.03%
c. 56.70%
d. 63.00%
e. 70.00%
8. What is the firm's Return on Assets?
a. 2.70%
b. 2.97%
c. 3.26%
d. 3.59%
e. 3.95%
9. What is the firm's Return on Equity?
a. 8.54%
b. 8.99%
c. 9.44%
d. 9.91%
e. 10.41%
10. What is the firm's Basic Earning Power?
a. 6.00%
b. 6.32%
c. 6.65%
d. 6.98%
e. 7.33%
11. What is the firm's Profit Margin?
a. 1.40%
b. 1.56%
c. 1.73%
d. 1.93%
e. 2.12%
12. What is the firm's Dividends per Share?
a. ₱2.62
b. ₱2.91
c. ₱3.20
d. ₱3.53
e. ₱3.88
13. What is the firm's Cash Flow per Share?
a. ₱10.06
b. ₱10.59
c. ₱11.15
d. ₱11.74
e. ₱12.35
14. What is the firm's Earnings per Share?
a. ₱5.84
b. ₱6.15
 c. ₱6.47
d. ₱6.80
e. ₱7.14
15. What is the firm's Price-Earnings ratio?
a. 12.0
b. 12.6
c. 13.2
d. 13.9
e. 14.6
16. What is the firm's book value per share?
a. ₱61.73
b. ₱64.98
c. ₱68.40
d. ₱72.00
e. ₱75.60
17. What is the firm's market-to-book ratio?
a. 0.56
b. 0.66
c. 0.78
d. 0.92
e. 1.08
18. What is the firm's equity multiplier?
a. 3.33
b. 3.50
c. 3.68
d. 3.86
e. 4.05