For Managment

Powerful Essays
MANAGEMENT ACCOUNTING

CHAPTER 3: RATIO ANALYSIS

QUESTION BANK

1. Given:
Current Ratio = 2.8
Acid-test ratio = 1.5
Working Capital = Rs. 1,62,000
Find out:
(a) Current Assets
(b) Current Liabilities (c) Liquid Assets

2.Given:
Current Ratio 2.5
Liquidity Ratio 1.5
Working Capital Rs. 60,000
Calculate:
(a) Current Liabilities
(b) Current Assets
(c) Liquid Assets
(d) Stock

3. Find out Current Assets
(a) When current ratio is 2.4 and working capital is Rs. 1,40,000.
(b) Calculate (i) current assets, (ii) liquid assets (iii) inventory, when current liabilities are Rs. 80,000, current ratio is 2:1, liquid ratio is 1.5:1, and prepaid expenses are Rs. 2,000. (c) Calculate current liabilities of a business concern whose current ratio is 2.2, liquid ratio 1.4, inventory Rs. 40,000 and prepare expenses are nil.
4. (a) If Apple Company Ltd’s Current ratio is 5.5:1, Quick ratio is 4 to 1. Inventory is Rs. 30,000, what are its Current liabilities? (b) If Orange Company Ltd’s inventory is Rs. 60,000, total current liabilities are Rs. 1,20,000, Quick ratio is 2 to 1, calculate Current ratio. (c) If DH Company Ltd’s Current liabilities are Rs. 25,000, Quick ratio is 1.5:1, inventory is Rs. 12,500, calculate current assets.

5. Calculate liquidity ratio from the following information and comment on them:

Balance Sheet of Nariman Ltd.
As on 31st March, 2000
Liabilities
Rs.
Assets
Rs.
Equity Share Capital
6,00,000
Goodwill
1,00,000
7% Debentures
3,50,000
Land and Building
2,30,000
Long-term Debts
2,00,000
Plant and Machinery
3,00,000
Bank Overdraft
75,000
Trade Investments
3,00,000
Sundry Creditors
60,000
Sundry Debtors
1,50,000
Bills Payable
30,000

You May Also Find These Documents Helpful

  • Best Essays

    Managment

    • 4581 Words
    • 19 Pages

    (Final Examination Student: Thant Zin Aung Student ID: 131537 Lecturer: Dr. Peggy Chen Subject: Management JNB 517 Course: Graduate Diploma Maritime & Logistics Management Due Date: 20 June 2011 Word Count: 3294 1 QUESTION 1 a ) Maersk Singapore Private Limited, represents Maersk Line, whose fleet comprises more than 500 vessels and a number of containers corresponding to more than 1,900,000 twenty foot equivalent unit in Singapore (Maersk Line n.d.) .Dominant…

    • 4581 Words
    • 19 Pages
    Best Essays
  • Satisfactory Essays

    Managment

    • 1160 Words
    • 5 Pages

    Management Stephen P. Robbins Chapter tenth edition Mary Coulter 1 Introduction to Management and Organizations 1–1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall OBJECTIVES 1.1 Who Are Managers? • Explain how managers differ from non-managerial employees. • Describe how to classify managers in organizations. 1.2 What Is Management? • Define management. • Explain why efficiency and effectiveness are important to management. Copyright © 2010 Pearson…

    • 1160 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    managment

    • 533 Words
    • 2 Pages

    Why Alamo is the Worst Rental Car Company Top of Form Bottom of Form - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Why Alamo is the Worst Rental Car Company Over Thanksgiving my husband and I had the worst experience renting a car. The laundry list of complaints began long before we ever rented the car. In the end all I wanted was my money back. I just had to figure out how to get it back. First of all we booked the reservation for the car over the internet. A…

    • 533 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Managment

    • 880 Words
    • 4 Pages

    Organizational Culture: Understanding Definitions & Typologies Understanding organizational culture offers employees insight for possibilities in an organization whether they are short term or long term members. The phrase, organizational culture gained prominence in the 1980s when Japan’s manufacturing successes became legendary. Those successes gave credence to organizational behavior and U.S. companies paid attention. Culture in the workplace captured the imagination and competition forced…

    • 880 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Managment

    • 591 Words
    • 3 Pages

    Question 2. Ignoring your answer to question 1, if the plant were not built and AR-42 was shipped from Netherlands to the UK, what transfer price would be appropriate? Firstly, we need to analyze the decision by identifying the advantage and disadvantage of manufacturing more product in Netherlands. The advantage is Hollandsworth would not take any financial risk, no borrowing would be necessary. Also, Axeon Dutch operations would see benefits from a lower variable cost for the entire product produced…

    • 591 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Managment

    • 1024 Words
    • 5 Pages

    Types of Risk Unfortunately, the concept of risk is not a simple concept in finance. There are many different types of risk identified and some types are relatively more or relatively less important in different situations and applications. In some theoretical models of economic or financial processes, for example, some types of risks or even all risk may be entirely eliminated. For the practitioner operating in the real world, however, risk can never be entirely eliminated. It is ever-present…

    • 1024 Words
    • 5 Pages
    Good Essays
  • Better Essays

    managment

    • 2312 Words
    • 8 Pages

    Problem Identification Reading the case we understood that that the Antamina Mining Company “CMA” faced two main problems while building copper and zinc mining operations in Peru. The problems are listed as follows. Transportation issue The first main problem which the company faces is connected with their initial plan to use the Central road passes through the environmentally sensitive Huascaran National Park “PNH”. There was a clear opposition from the side of The Mountain Institute NGO, UNESCO…

    • 2312 Words
    • 8 Pages
    Better Essays
  • Better Essays

    Managment

    • 771 Words
    • 4 Pages

    Name: Sara Kh. Mohamed Date: 19.Feb.13 Finalcial Management Control Asignment 1 Vodafone Ratio Analysis What 's the concept of Ratio? involves methods of calculating and interpreting financial ratios to analyze & monitor the firm’s performance Liquidity Ratios The liquidity of a firm is measured by its ability to satisfy its short-term obligations as they come due. Current Ratio A measure of liquidity calculated by dividing the firm’s current assets by its current liabilities. Generally…

    • 771 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    managment

    • 2301 Words
    • 10 Pages

    Beaulieu motor museum Section 1- Beaulieu motor museum is located near the new forest where most customers come from the new forest and go visit the museum. Beaulieu motor museum is a big visitor attraction; they have up to 250 cars. Beaulieu has so much to offer to their customers and they try to meet every customers need that come to the museum, how they find out their customers’ needs is they hand out a paper and it asks them what they would change about the museum? And customers give their…

    • 2301 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Managment Process

    • 1409 Words
    • 6 Pages

    Bibliography: Aheles, A. (2011, December 18). Route to bankruptcy: Uncontrollable market forces hurt american, but so did its actions. Retrieved from http://www.star-telegram.com/2011/12/16/3601197/american-airlines-bankruptcy.html Lewis, P. (2007). Managment challengers for tommorrow 's leaders. (5e ed., pp. 39-42 ,90-92). Mason, Ohio: Tomson South-Western.…

    • 1409 Words
    • 6 Pages
    Better Essays