Ratio Analysis Practice Problem
1. Lopunny Company has current assets of P50,000 and current liabilities of P25,000. What is
the current ratio?
A. 1.5 C. 0.5
B. 2 D. 3
2. Eevee Company has current assets of P80,000, inventories worth P20,000, and current
liabilities of P40,000. What is the quick ratio?
A. 0.5 C. 2
B. 1.5 D. 3
3. Venasaur Company has current assets of P100,000 and current liabilities of P60,000. What is
the working capital ratio?
A. 1.67 C. 0.6
B. (40,000) D. 40,000
4. Charizard has net credit sales of P200,000 and an average accounts receivable balance of
P40,000. What is the accounts receivable turnover?
A. 5x C. 3x
B. 4x D. 6x
5. Vaporeon Company has sales of P300,000, 50% of the sales were collected upon selling, and
an ending accounts receivable balance of P30,000. What is the accounts receivable turnover?
A. 5x C. 3x
B. 4x D. 6x
6. Ainz Ooal Gown Corporation has cost of goods sold (COGS) of P120,000 and an average
inventory balance of P20,000. What is the inventory turnover?
A. 5x C. 3x
B. 4x D. 6x
7. Albedo Corporation has COGS of P80,000, a beginning inventory of P5,000 an ending
inventory balance of P15,000. What is the inventory turnover?
A. 5x C. 8x
B. 6x D. 10x
8. Dimitrescu Company has purchases worth P180,000 and an average accounts payable balance
of P30,000. What is the accounts payable turnover?
A. 4x C. 3x
B. 5x D. 6x
9. Meliodas Company has purchases worth P140,000, P20,000 of the purchases were paid in
cash, and an ending accounts payable balance of P20,000. What is the accounts payable
turnover?
A. 5x C. 6x
B. 7x D. 4x
10. Cloud Company has a current ratio of 2 and a quick ratio of 1.5, and its current liabilities are
P50,000, what is its inventory?
A. P10,000 C. P25,000
B. P15,000 D. P30,000
Ratio Analysis Practice Problem
11. Erza Company had total credit sales of P50,000 over the past year. If their average accounts
receivable balance was P10,000, what is the company's Days Sales Outstanding (DSO)?
Assume 365 days
A. 72 days C. 73 days
B. 73 D. 72
12. Luffy company has annual credit sales of P500,000 and its accounts receivable at the
beginning of the year were P50,000. By the end of the year, the accounts receivable balance
increased by P70,000. Assume 365 days Calculate the DSO for Company
A. 62.05 days C.43.2 days
B. 43.8 days D. 61.2 days
13. Jolteon company sells widgets and had P100,000 worth of inventory at the beginning of the
year. Throughout the year, they purchased P300,000 worth of additional inventory, and their
cost of goods sold (COGS) was P200,000. What is the company's Days in Inventory (DII)
assuming the company use 360 days?
A. 360 days C. 273.75 days
B. 365 days D. 270 days
14. Gardevoir company had beginning inventory of P80,000, ending inventory of P60,000, and
cost of goods sold (COGS) of P400,000. Calculate the Days in Inventory (DII) for Gardevoir
company. (Use 365 days)
A. 126 days C. 63.875 days
B. 127.75 days D. 63 days
15. Lucario company has purchases worth P90,000, of which P40,000 were paid in cash during
the year. Their average accounts payable balance is P10,000. Calculate the Days in Accounts
Payable (DAP) for Lucario company. Use 360 days.
A. 72 days C. 73 days
B. 40 days D. 40.56 days
16. Killua company has purchases worth P600,000 on credit during the year. At the beginning of
the year, their accounts payable balance was P40,000, and by the end of the year, it increased
to P60,000. Calculate the Days in Accounts Payable (DAP) for Killua company. (use 360
days)
A. 42 days C. 30.42 days
B. 30 days D. 42.58 days
17. Deku company takes 40 days to sell its inventory and 25 days to collect its accounts receivable.
What is the company's operating cycle?
A. 15 days C. 0.625x
B. 1.6x D. 65 days
18. Rimuru Tempest owns RT company and has an inventory turnover of 6 times and 12 times in
receivable turnover. Additionally, it takes 45 days to pay its accounts payable. Calculate the
operating cycle for RT Company assuming the company uses 360 days.
A. 45 days C. 91.25 days
B. 90 days D. 46.25 days
Ratio Analysis Practice Problem
19. Tanjiro company has an operating cycle of 60 days and days in accounts payable of 30 days.
What is the Cash Conversion Cycle (CCC) for Tanjiro company?
A. 30 days C. 60
B. 30 D. 90 days
20. Snorlax company has an operating cycle of 75 days, DII of 45 days, and DIAP of 60 days.
Calculate the Cash Conversion Cycle (CCC) for Snorlax company.
A. 15 days C. (15 days)
B. 60 days D. 30 days
