Problem 1
A company having the Net working capital of 2.8 Lacs as on 30.06.10 indicates the following financial ratios and performance figures Current Ratio 2.4
Liquidity ratio1.6
Inventory Turnover 8
(on cost of sales )
Gross Profit on Sales 20%
Credit Allowed (months )1.5

The company s fixed Assets is equivalent to 90% of its net worth ( Share capital plus reserves ) while reserves amounted to 40 % of share capital Prepare the balance sheet of the company as on 30.06.2003 showing all calculation

Problem 2
Calculate Creditors Turnover Ratios from the following Data Particulars Rs
Opening Creditors 25000
Purchase returns 5000
Cash paid to Crs1,30,000
Closing Crs 15,000

Problem 3
Calculate the following Ratios
Current Assets Rs 5,00,000, Opening Stock – Rs 50,000, Cl Stock Rs 1,50,000, Cost of Goods Sold –Rs 12,00,000 , Gross profit – Rs 2,00,000 indirect expenses Rs 20,000 ,Equity Share Capital – Rs 7,00,000 , 10 % Preference share capital - Rs 3,00,000, 12 % debentures – Rs 2,00,000, Current liabilities Rs 2,00,000 and General Reserve – Rs 1,00,000

Problem 4
From the following figures and ratios draw out Balance sheet and Trading and P& L Account Particulars RS
Share Capital1,80,000
working Capital63,000
O/D10,000

There is no fictitious assets , In current assets there is no assets other than stock ,debtors and cash ,Closing stock is 20 % higher than the opening stock Particulars
Current Ratio 2.5
Proprietary ratio 0.7
Stock Velocity 4
NP Ratio 10%Av Cap Employed
Quick Ratio 1.5
Gross Profit Ratio 20%( Sales )
Debtors Velocity 36.5Year

Problem 5
From the following information , prepare the Balance Sheet ,Show the workings Particulars Rs
Working Capital 75,000
Reserves and Surplus 1,00,000
Bank O/D 60,000
Current Ratio1.75
Liquid Ratio 1.15...

...Financial ratioanalysis
A reading prepared by Pamela Peterson Drake
OUTLINE
1.
2.
3.
4.
5.
1.
Introduction
Liquidity ratios
Profitability ratios and activity ratios
Financial leverage ratios
Shareholder ratios
Introduction
As a manager, you may want to reward employees based on their performance. How do you know
how well they have done? How can you determine what departments or divisions...

...RatioAnalysisRatioanalysis is one of the techniques of financial analysis where ratios are used as a yardstick for evaluating the financial condition and performance of a firm. Analysis and interpretation of various accounting ratios gives skilled and experienced analyst a better understanding of the financial condition and performance of the firm than what he could have...

...
RATIOANALYSIS
Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms. In some cases, ratioanalysis can predict future bankruptcy.
Financial ratios can be...

... 4
Chapter 1. Introduction 5
1.1 Theoretical background 8
1.1.1 Use and significance of RatioAnalysis 8
1.1.2 Limitations 11
1.1.3 Classifications of ratios 13
1.2 Research Methodology 33
1.2.1 Need for the study 33
1.2.2 Scope of the...

...Financial Reporting II
Review of RatioAnalysisRatioanalysis is a useful tool for analyzing financial statements. Calculating ratios will aid in understanding the company’s strategy and in understanding its strengths and weaknesses relative to other companies and over time. They can sometimes be useful in identifying earnings management and in understanding the effect of accounting choices on the firm’s reported...

...ANALYSIS OF FINANCIAL STATEMENTS
Financial statement analysis is the study of relationships between the elements of the same statement or different financial statements and the trend of these elements. The purpose of financial statement analysis is to determine the meaning and significance of the data contained in the statements so that a forecast may be made of the prospects for future earnings, expected dividends and the ability of the business...

...METHODIST UNIVERSITY COLLEGE GHANA
FACULTY OF BUSINESS ADMINISTRATION
LEVEL 300
FINANCIAL ACCOUNTING IV
RATIOANALYSIS OF FML UN-AUDITED ACCOUNTS OF 2010 AND 2011
Name Index No Programme
1. Osumanu-Sulemana Amidu BBAA/ET/123001 Accounting
2. Emmanuel Addae BBAA/ET/ 117726 Accounting...

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