The following ratios and other data pertain to the financial statements of A. Cuenca Company...
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Accounting
The following ratios and other data pertain to the financial statements of A. Cuenca Company for the year ended December 31, 2018.
Current Ratio 1.80:1
Acid test Ratio 1.50:1
Working Capital P 320,000
Inventory Turnover (based on ending inventory 8 times
Gross Profit Percentage 40%
Average age of outstanding A/R (based on 360 days) 90 days
Plant assets to stockholders equity 0.08 to 1
Earnings per share P 2.00
Capital Stock, shares outstanding 40,000
Net earnings for the year as a % of capital stock 20% 10%
Bonds payable at the beginning and end of 2018 P200,000
The company has no prepaid expenses, deferred or intangible assets.
Required: Reconstruct the following financial statements:
1. Income Statement for 2018
2. Balance Sheet as of December 31, 2018
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