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Exam Based Problems
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1
The following information is provided ($/₹/Rs):
Inventory |
30,000 |
|
Bills receivable |
10,000 |
Creditors |
20,000 |
|
Fixed assets |
50,000 |
Debtors |
25,000 |
|
Debtors turnover ratio |
5 times |
Cash in hand |
5,000 |
|
Gross profit |
20,000 |
Required: (a) Current ratio; (b) Quick ratio; (c) Sales amount; (d) Fixed assets turnover ratio;
(e) Gross profit margin
[Answer: (1) 3.5:1; (2) 2:1; (3) Rs 1,75,000; (4) 3.5 times; (5) 11.43%;
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2
The following information is provided ($/₹/Rs):
Gross profit for year |
1,70,000 |
|
Gross profit margin |
20% |
Inventory |
75,000 |
|
Account payable |
20,000 |
Bills payable |
15,000 |
|
Bank overdraft |
5,000 |
Account receivable |
20,000 |
|
Cash at bank |
10,000 |
Share capital |
2,00,000 |
|
General reserve |
50,000 |
Retained earning |
20,000 |
|
Net profit margin |
10% |
Required: (a) Current ratio; (b) Sales amount; (c) Inventory turnover ratio; (d) Net profit; (e) Return on shareholders’ equity
[Answer: (a) 2.1:1; (b) Rs 850,000; (c) 11.33 times;
(d) Rs 85,000; (e) 31.48%;*SHE = Rs 270,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 3
The following information is given ($/₹/Rs):
Inventory |
20,000 |
|
Creditors |
30,000 |
Debtors |
30,000 |
|
Gross profit |
25,000 |
Cash balance |
10,000 |
|
Bills receivable |
10,000 |
Fixed assets |
60,000 |
|
Debtors turnover ratio |
4 times |
Required: (a) Current ratio; (b) Quick ratio; (c) Sales amount; (d) Gross profit margin; (e) Inventory turnover ratio
[Answer: (a) 2.33:1; (b) 1.67:1; (c) Rs 160,000;
(d) 15.63%; (e) 8 times]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 4
The following extracted information is provided ($/₹/Rs):
Credit sales |
70,000 |
|
Cash sales |
2,00,000 |
Equity shares capital |
5,00,000 |
|
10% Loan |
1,00,000 |
General reserve |
25,000 |
|
Income tax rate |
50% |
Preliminary expenses |
5,000 |
|
Net profit after tax |
57,000 |
Current ratio |
1.75 : 1 |
|
Current assets |
3,50,000 |
Required: (a) Return on shareholder’s equity; (b) Net profit margin; (c) Current liabilities
(Ans.: (a) 10.96%; (b) 21.11%; (c) Rs 2,00,000;
*SHE = Rs 5,20,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 5
The following information is provided to you ($/₹/Rs):
Sales |
5,00,000 |
|
Sales return |
20,000 |
Gross profit |
1,60,000 |
|
Administrative expenses |
40,000 |
Selling expenses |
20,000 |
|
Interest on debentures paid |
10,000 |
Loss on sales of plant |
15,000 |
|
Gain on sales of investment |
5,000 |
Current assets |
1,50,000 |
|
Current ratio |
2 : 1 |
Debtors turnover |
5 times |
|
|
|
Required: (a) Gross profit margin; (b) Net profit margin (c) Current liabilities; (d) Debtors;
(e) Debt collection period
(Ans.: (a) 33.33%; (b) 16.67%; (c) Rs 75,000; (d) Rs 96,000;
(e) 72 days) *Net profit = Rs 80,000; Net sales = Rs 480,000;
#####
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Accounting for Share |
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Share in Nepali |
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Debentures |
|
Final Accounts: Class 12 |
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Final Accounts in Nepali |
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Work Sheet |
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Ratio Analysis (Accounting Ratio) |
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Fund Flow Statement |
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Cash Flow Statement |
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Theory Accounting Xii |
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Theory: Cost Accounting |
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Cost Accounting |
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LIFO−FIFO |
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Cost Sheet, Unit Costing |
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Cost Reconciliation Statement |
#####
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 6
The following information was extracted from the financial statements of the company ($/₹/Rs):
Sales for the year |
4,50,000 |
|
Stock |
1,21,350 |
Creditors |
82,350 |
|
8% debentures |
99,000 |
Fixed assets |
2,38,500 |
|
Other current assets |
90,150 |
Share capital |
1,20,000 |
|
Net profit for the year |
22,350 |
P&L account (Cr) |
96,300 |
|
Bank overdraft |
30,000 |
Required: (a) Stock turnover ratio; (b) Debt equity ratio; (c) Quick ratio; (d) Return on fixed assets;
(e) Fixed assets turnover ratio; (f) Return on shareholder’s equity
[Answer: (a) 3.71 times; (b) 45.77%; (c) 0.8:1 (d) 9.37%
(e) 1.89 times; (f) 10.33%;*SHE = Rs 216,300]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 7
The balance sheet of D Company Ltd on 31st December is given below ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Bills payable |
90,000 |
Sundry debtors |
60,000 |
Interest payable |
18,000 |
Cash balance |
33,000 |
12% Debentures |
1,50,000 |
Short term loan |
30,000 |
Reserve and surplus |
60,000 |
Inventories |
40,000 |
Equity capital of Rs 100 each |
3,00,000 |
Machinery |
1,25,000 |
|
|
Land and building |
3,25,000 |
|
|
Discount on share |
5,000 |
|
6,18,000 |
|
6,18,000 |
Additional information:
Debtor’s turnover ratio is 10 times and net profit margin is 15%
Required: (a) Sales amount; (b) Liquid ratio; (c) Debt equity ratio; (d) Average collection period (360 days in year); (e) Earnings per share
[Answer: (a) Rs 600,000 (b) 1.13:1; (c) 42.25%; (d) 36 days; (e) Rs 30)
* SHE = Rs 355,000; Profit available to ESH = Rs 90,000
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 8
Balance sheet of A Company Ltd on 31st December is given below ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Equity shares capital |
1,40,000 |
Land and building |
40,000 |
6% Debenture |
50,000 |
Plant and machinery |
44,000 |
Tax payable |
10,000 |
Stock |
90,000 |
Bank overdraft |
32,000 |
Bills receivable |
12,000 |
Sundry creditors |
10,000 |
Cash in hand |
16,000 |
Outstanding salary |
4,000 |
Cash at bank |
30,000 |
General reserve |
6,000 |
Debtors |
40,000 |
Profit and loss account |
24,000 |
Underwriting commission |
4,000 |
|
2,76,000 |
|
2,76,000 |
Additional information:
Net profit after tax for the period Rs 60,000 and sales Rs 6,00,000
Required: (a) Current ratio; (b) Quick ratio; (c) Debt to total capital ratio (d) Return on fixed assets; (e) Return on shareholder’s fund; (f) Net profit ratio
[Answer: (a) 3.36:1; (b) 1.75:1; (c) 26.04%; (d) 71.43%;
(e) 42.25%; (f) 10%; *SHE = Rs 166,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 9
Balance sheet of P Company Ltd on 31st December last year is given below ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Equity shares capital |
6,00,000 |
Machinery |
6,50,000 |
Profit and loss account |
1,90,000 |
Furniture |
1,60,000 |
10% Debenture |
3,00,000 |
Debtors |
2,25,000 |
Creditors |
50,000 |
Bank balance |
40,000 |
Wages outstanding |
10,000 |
Inventory |
60,000 |
|
|
Advance salary |
5,000 |
|
|
Deficit |
10,000 |
|
11,50,000 |
|
11,50,000 |
Additional information:
Cash sales Rs 2,50,000
Credit sales Rs 5,50,000
Net profit for the year Rs 1,50,000
Required: (i) Liquid ratio; (ii) Debtors’ turnover ratio; (iii) Fixed assets turnover ratio; (iv) Debt equity ratio;
(v) Return on fixed assets
[Answer: (i) 4.5:1; (ii) 2.44:1 (iii) 0.99 time; (iv) 38.46%;
(v) 18.52%; *SHE = Rs 780,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 10
The balance sheet of AK Company Ltd on 31st December is given below ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Equity share capital |
5,00,000 |
Inventory |
2,00,000 |
Profit and loss account |
1,00,000 |
Debtors |
3,00,000 |
7% preference share capital |
4,00,000 |
Bank balance |
80,000 |
Provision for tax |
30,000 |
Preliminary expenses |
20,000 |
Creditors |
1,70,000 |
Fixed assets |
6,00,000 |
|
12,00,000 |
|
12,00,000 |
Additional information:
Sales Rs 10,00,000
Net profit after tax Rs 2,50,000
Required: (a) Inventory turnover ratio; (b) Current ratio; (c) Net profit ratio
(d) Return on shareholders’ equity; (e) Return on common equity fund
[Answer: (a) 5 times; (b) 2.9:1; (c) 25%; (d) 22.65% or 25.51%;
(e) 38.28%]*SHE = Rs 9,80,000]
###########
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|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 11
The balance sheet of Bhawana Company Ltd on 31st December is given below ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Equity share capital |
8,00,000 |
Fixed assets |
7,00,000 |
General reserve |
1,00,000 |
Investment |
4,00,000 |
Profit and loss account |
3,00,000 |
Inventories |
3,00,000 |
10% Debentures |
5,00,000 |
Debtors |
4,00,000 |
Outstanding expenses |
50,000 |
Bank balance |
1,50,000 |
Creditors |
2,50,000 |
Discount on debenture |
50,000 |
|
20,00,000 |
|
20,00,000 |
Additional information:
Sales for the year Rs 15,00,000.
Tax rate is 25%
Net profit before tax is Rs 2,80,000
Required: (i) Quick ratio; (ii) Debtors turnover ratio; (iii) Fixed assets turnover ratio; (iv) Return on shareholders’ equity
[Answer: (i) 1.83: 1; (ii) 3.75 times; (iii) 2.14 times;
(iv) 18.26%; *SHE = Rs 11,50,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 12
A company provides you the following balance sheet for the year ended December 31, ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Equity share capital |
2,00,000 |
Fixed assets |
4,75,000 |
6% Preference share |
50,000 |
Investment, long term |
50,000 |
8% Debenture |
50,000 |
Other quick assets |
1,35,000 |
Current liabilities |
1,80,000 |
Closing stock |
20,000 |
Reserve |
1,80,000 |
Account receivable |
1,57,500 |
P&L account of last year |
1,31,750 |
Preliminary expenses |
10,000 |
Profit of current year |
55,750 |
|
|
|
8,47,500 |
|
8,47,500 |
Additional information:
Fixed assets turnover ratio is 3 times for the year.
Net profit margin before interest and tax is 10% of sales
Company is within 40% tax bracket.
Working days during the year is 360 days
Required: (a) Amount of sales; (b) Amount of net profit after tax; (c) Average collection period
(d) Current ratio; (e) Quick ratio; (f) Debt equity ratio; (g) Return on equity shareholder fund
[Answer: (a) Rs 14,25,000; (b) Rs 83,500; (c) 40 days;
(d) 1.74:1; (e) 1.625:1; (f) 8.23%; (g) 14.80%)
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 13
The profit and loss account and balance sheet are given below ($/₹/Rs):
Profit and Loss Account
Particulars |
Amount |
Particulars |
Amount |
To Salary |
45,000 |
By Gross profit |
1,00,000 |
To Rent |
10,000 |
|
|
To Administrative cost |
5,000 |
|
|
To Interest on loan |
5,000 |
|
|
To Printing and stationary |
5,000 |
|
|
To Net profit c/d |
30,000 |
|
|
|
1,00,000 |
|
1,00,000 |
Balance Sheet
For the year ended 31st December
Liabilities |
Amount |
Assets |
Amount |
Share capital |
2,00,000 |
Machinery |
1,00,000 |
5% Debenture |
1,00,000 |
Building |
2,00,000 |
Profit and loss account |
30,000 |
Debtors |
10,000 |
Creditors |
10,000 |
Stock |
18,000 |
Outstanding expenses |
5,000 |
Cash |
17,000 |
|
3,45,000 |
|
3,45,000 |
Additional information:
Sales for the year is Rs 2,25,000 and sales return Rs 25,000
Required: (a) Gross profit ratio; (b) Net profit ratio; (c) Liquid ratio; (d) Debt equity ratio; (e) Return on assets
[Answer: (a) 50%; (b) 15%; (c) 1.8:1; (d) 43.48%; (e) 8.7%; *SHE = Rs 2,30,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 14
The balance sheet of Kuber Company Ltd on 31st December last year is as under ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Share capital |
5,00,000 |
Land and building |
4,30,000 |
Profit and loss account |
50,000 |
Plant and machinery |
1,00,000 |
10% Debenture |
2,00,000 |
Inventories |
70,000 |
Account payable |
40,000 |
Account receivable |
50,000 |
Bills payable |
30,000 |
Marketable securities |
25,000 |
Outstanding expenses |
10,000 |
Cash |
15,000 |
|
|
Investment |
1,30,000 |
|
|
Loss on issue of debenture |
10,000 |
|
8,30,000 |
|
8,30,000 |
Additional information:
Inventory turnover for the year was 5 times.
Net profit margin was 20%.
Required: (a) Current ratio; (b) Quick ratio; (c) Sales amount; (d) Debtors’ turnover ratio;
(e) Debts to total capital ratio; (f) Net profit
[Answer: (a) 2:1; (b) 1.125:1; (c) Rs 350,000; (d) 7 times;
(e) 27%; (f) Rs 70,000; *SHE = Rs 540,000;
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 15
The balance sheet AD Company Ltd on 31st December last year is as below ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Share capital of Rs 100 each |
4,00,000 |
Land and building |
3,00,000 |
General reserve |
1,00,000 |
Plant and machinery |
1,30,000 |
Sundry creditors |
40,000 |
Inventory |
1,50,000 |
Bills payable |
30,000 |
Sundry debtors |
30,000 |
Bank overdraft |
25,000 |
Cash and bank balance |
20,000 |
Outstanding expenses |
5,000 |
Prepaid expenses |
10,000 |
Retained earning |
40,000 |
|
|
|
6,40,000 |
|
6,40,000 |
Additional information:
Gross profit margin 20%.
Gross profit is Rs 3,40,000.
Net profit margin is 7.5%.
Required: (a) Amount of sales; (b) Current ratio; (d) Quick ratio; (e) Net profit; (f) Inventory turnover ratio;
(g) Return on shareholders’ equity
[Answer: (a) Rs 17,00,000; (b) 2.1:1; (c) 0.5:1; (d) Rs 1,27,500;
(e) 11.33 times; (f) 23.61%; *SHE = Rs 540,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 16
Given below is the balance sheet of AK Company Ltd for previous year ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Share capital paid up |
1,50,000 |
Fixed assets |
80,000 |
Reserve |
60,000 |
Stock in trade |
1,80,000 |
Retained earning |
26,000 |
Debtors |
1,70,000 |
7% Debenture |
60,000 |
Cash |
16,000 |
Current liabilities |
1,50,000 |
|
|
|
4,46,000 |
|
4,46,000 |
Additional information:
(a) Sales for the year: cash sales Rs 30,000; credit sales Rs 7,20,000.
(b) Cost of goods sold Rs 6,00,000.
(c) Net profit after tax Rs 35,000.
Required: (1) Current ratio; (2) Liquid ratio; (3) Gross profit margin; (4) Net profit margin
(5) Fixed assets turnover ratio; (6) Debtors’ turnover ratio
[Answer: (1) 2.44:1; (2) 1.24:1; (3) 20%; (4) 4.67%
(5) 9.375 times; (6) 4.24 times; *Gross profit = Rs 150,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 17
Given below is the balance sheet of AB Company Ltd for the previous year ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Equity share capital |
3,00,000 |
Fixed assets (net) |
4,00,000 |
7% Preference share capital |
2,00,000 |
Stock in trade |
1,00,000 |
Reserve |
10,000 |
Debtors |
80,000 |
Retained earning |
40,000 |
Cash |
40,000 |
8% Debenture |
1,20,000 |
Prepaid expenses |
80,000 |
Sundry creditors |
30,000 |
|
|
|
7,00,000 |
|
7,00,000 |
Additional information:
(i) Total sales for the year Rs 10,00,000, credit sales Rs 8,00,000.
(ii) Income before tax Rs 100,000.
(iii) Income tax rate 25%.
Required: (a) Current ratio; (b) Quick ratio; (c) Debt equity ratio; (d) Net profit margin;
(e) Fixed assets turnover ratio; (f) Debtors’ turnover ratio
[Answer: (a) 10:1; (b) 4:1; (c) 21.82%; (d) 7.5%; (e) 2.5 times;
(f) 10 times; *SHE = Rs 550,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 18
Given below is the balance sheet of Y Company Ltd for the previous year ($/₹/Rs):
Liabilities |
Amount |
Assets |
Amount |
Share capital of Rs 100 each |
2,50,000 |
Machinery |
1,50,000 |
Reserve and surplus |
65,000 |
Furniture |
1,00,000 |
10% Debentures |
1,25,000 |
Sundry debtors |
50,000 |
Sundry creditors |
40,000 |
Inventories |
1,25,000 |
Bills payable |
85,000 |
Marketable securities |
1,20,000 |
Outstanding expenses |
10,000 |
Cash |
30,000 |
|
5,75,000 |
|
5,75,000 |
Additional information:
Inventory turnover ratio 6 times.
Net income after tax Rs 50,000.
Required: (a) Current ratio; (b) Debt equity ratio; (c) Sales amount; (d) Fixed assets turnover
(e) Net profit margin; (f) Return on shareholders’ equity
[Answer: (a) 2.41:1; (b) 39.68%; (c) Rs 7,50,000; (d) 3 times;
(e) 6.67%; (f) 15.87%; *SHE = Rs 315,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 19 AP: 1
Balance sheet of XYZ Company Ltd on 31st December is given below:
Liabilities |
Amount |
Assets |
Amount |
Equity shares capital of Rs 100 each |
12,00,000 |
Fixed assets |
10,00,000 |
10% Debentures |
8,00,000 |
Investment |
6,00,000 |
General reserve |
2,00,000 |
Current assets |
7,50,000 |
Current liabilities |
3,00,000 |
Preliminary expenses |
1,50,000 |
|
25,00,000 |
|
25,00,000 |
Additional information:
Capital employed turnover ratio was 3 times
Gross profit ratio was 20% of sales
Administrative and selling expenses was Rs 9,50,000
Required: (a) Sales amount; (b) Gross profit; (c) Net profit margin; (d) Return on shareholder equity;
(e) Fixed assets turnover ratio; (f) Debt equity ratio
[Answer: Sales = Rs 61,50,000; GP = Rs 12,30,000; NPM = 4.55%;
ROSE = 22.4%; FATR = 6.15 times; DER = 64%]
* Capital employed = Shareholder equity + Long term loan;
CETR = sales ÷ capital employed]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
ADVANCED PROBLEM: 1 AP: 6
Following is financial statement of ABC Company Ltd on 31st December:
Trading, Profit and Loss Account
Particulars |
Amount |
Particulars |
|
Amount |
To Opening stock |
5,00,000 |
By Sales |
|
|
To Purchased |
37,50,000 |
Cash sales |
30,00,000 |
|
To Wages |
450,000 |
Credit sales |
+27,00,000 |
57,00,000 |
To Carriage inward |
1,00,000 |
By Closing stock |
|
7,00,000 |
To Gross profit |
16,00,000 |
|
|
|
|
64,00,000 |
|
|
64,00,000 |
To Administrative expenses |
1,50,000 |
By Gross profit |
|
16,00,000 |
To Selling expenses |
3,00,000 |
By Sundry income |
|
50,000 |
To Distribution expenses |
1,70,000 |
|
|
|
To Interest on debenture |
80,000 |
|
|
|
To Net profit |
9,50,000 |
|
|
|
|
16,50,000 |
|
|
16,50,000 |
Balance Sheet
Liabilities |
Amount |
Assets |
Amount |
Authorised and issued capital: |
|
Goodwill |
1,00,000 |
15,000 Equity shares @ Rs 100 |
10,00,000 |
Fixed assets: |
|
5,000; 8% Pref. shares @ Rs 100 |
5,00,000 |
Land and building |
14,00,000 |
Reserve, fund and surplus: |
|
Plant and machinery |
9,00,000 |
Reserve and surplus |
4,00,000 |
Investment: |
|
Surplus |
9,00,000 |
investment in shares |
2,00,000 |
Secured loan: |
|
Current assets: |
|
10% Debentures |
8,00,000 |
Stock |
7,00,000 |
Current liabilities: |
|
Sundry debtors |
8,50,000 |
Sundry creditors |
4,00,000 |
Bill receivable |
2,50,000 |
Bank overdraft |
4,40,000 |
Bank balance |
20,000 |
Outstanding expenses |
10,000 |
Prepaid expenses |
30,000 |
Provision: |
|
Miscellaneous expenditures: |
|
Provision for tax |
50,000 |
Discount on shares |
50,000 |
|
45,00,000 |
|
45,00,000 |
Required:
Current ratio |
Capital employed turnover ratio |
Acid test ratio |
Gross profit margin |
Debt equity ratio |
Net profit margin |
Debt to total capital ratio |
Return of fixed assets |
Stock turnover ratio |
Return on net assets |
Debtors turnover ratio |
Return on capital employed |
Average collection period (360 days in year) |
Return on shareholder equity |
Fixed assets turnover ratio |
Return on common shareholders fund |
Total assets turnover ratio |
|
Answers:
CR = 2.06:1 |
ACP = 147 days |
ROFA = 38% |
ATR = 1.33:1 |
FATR = 2.28 times |
ROA = 21.35% |
DER = 29.1% |
TATR = 1.28 times |
ROCE = 26.76% |
DTCR = 22.5% |
CETR = 1.61 times |
ROSE = 34.55% |
STR = 6.83 times |
GPM = 28.07% |
ROCSF = 40.44% |
DTR = 2.45 times |
NPM = 16.67% |
|
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