1. Mark Corp. uses the allowance method for bad debts.

During 2008, Mark charged

P 30,000 to bad debts expense, and wrote off P 25,200 of uncollectible accounts receivable.
These transactions resulted in a decrease in working capital of?
Cash 2,400,000.00
Marketable Securities 7,500,000.00
A/R 57,600,000.00
Inventories 66,300,000.00
Prepaid Expenses 1,200,000.00
Current Liabilities
Notes Payable 1,500,000.00
Accounts Payable 19,500,000.00
Accrued Payable 12,500,000.00
Income Tax Payable 500,000.00
Current Portion of Long- Term Debt 3,500,000.00

1. Quick Ratio
Net A/R, December 31 2007 900,000.00
Net A/R, December 31 2008 1,000,000.00
Inventorie, December 31, 2007 1,100,000.00
Inventories, December 31, 2008 1,200,000.00
A/R Turnover 5 to 1
Inventory Turnover 4 to 1

Compute Gross Margin

Cost of Goods Sold 5,400,000.00
Ave. Inventory 1,800,000.00
Net Sales 7,200,000.00
Average Receivables 960,000.00
Net Income 720,000.00
Purchases 2,500,000.00
Accounts Payable 1,000,000.00

Use 360 days. Compute the average days in Net Operating Cycle

Days Sales - A/R 48.00

Add: Days in Inventory 120.00
Operating Cyle 168.00
Less: Days in A/P - 144.00
Net Operating Cyle 24.00
Royal Company's net A/R were P 500,000 at December 31, 2007,
and P 600,000 at December 31, 2008. Net Cash Sales for 2008 were
P 200,000. The A/R turnover for 2008 was 5.

Compute Net Sales for 2008

During October 2008, Adam Company had sales of P 5,000,000, variable
costs of P 3,000,000 and fixed costs amounting to P 1,500,000 for product
M. Assume that cost behavior and unit selling price unchanged during
November 2008. In order for Adam to realize operating income ofP 300,000 from product M
for November, sales would have to be