# Ratio Analysis Sums

**Topics:**Inventory, Generally Accepted Accounting Principles, Balance sheet

**Pages:**3 (519 words)

**Published:**January 16, 2011

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...

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