Ratio Analysis Sums

Ratio Analysis – Unit II 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 ratio 1.6
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 Crs 1,30,000
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 Capital 1,80,000 working Capital 63,000
O/D 10,000

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 36.5 Year

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 Ratio 1.75
Liquid Ratio