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analysis

  1. 1. Question # 1 Following is the balance sheet of XYZ Ltd. as on 31st December, 2010. Sales $600,000 Gross Profit 20% on cost Calculate the following ratios: •Current Ratio •Liquidity Ratio •Stock Turnover Ratio •Debtors turnover Ratio Liabilities $ Assets $Equity Share Capital: Machinery 400,0002400 shares of Rs. 100 each 240,000 Furniture 50,000Profit and loss account 60,000 Stock 120,00010% debentures 150,000 Sundry Debtors 90,000Sundry Creditors 150,000 Cash at bank 22,800Provision for taxation 10,000 Prepaid insurance 7,200Bank Overdraft 80,000 690,000 690,000
  2. 2. Question # 2Chand & Co. purchase goods both for cash and on credit. Thefollowing figures have been taken from their books: Total purchases $425,000 Cash Purchases $113,000 Returns Outwards $12,000 Creditors at the end of the year $53,200 Bills payable at the end of the year $6,800Taking a year of 365 days calculate creditors turnover ratioand average payment period.
  3. 3. Question # 3Compute the debtor turnover ratio and debtor collection period fromthe following: 2009 2010 Gross Sales 950,000 800,000 Cash Sales 100,000 75,000 Sales Returns 50,000 25,000 Debtors in the beginning of the year 73,000 - Bills recievables at the beginning of the year 10,000 - Debtors at the end of the year 102,000 77,000 Bills recievables at the end of the year 15,000 6,000
  4. 4. Question # 4From the following trading and profit and loss account of AlliedChemicals Ltd. compute: •Gross Profit Ratio •Operating Profit Ratio •Operating Ratio •Net Profit Ratio •Stock Turnover ratio
  5. 5. Trading and Profit and Loss Account For the Year Ended 31st December, 2010 Details $ Details $Stock 55,000 Sales 843,500Purchases 465,000 Stock 79,500Factory Expenses 143,000Gross Profit c/d 260,000 923,000 923,000Office Expenses 50,000 Gross Profit c/d 260,000Selling Expenses 30,000 Profit on sales of car 20,000Distribution Expenses 20,000 Interest on Investment 40,000Provision for Doubtful Debts 4,000Depreciation 16,000Interest on Debentures 14,000Loss of Cash by theft 6,000Net Profit 180,000 320,000 320,000
  6. 6. Question # 5From the summarized balance sheet given below of a company calculate: •Stock Turnover Ratio •Debtors Turnover Ratio •Working Capital Turnover Ratio •Fixed assets turnover ratio Liabilities $ Assets $ Equity 124,000 Fixed Assets 208,000 Lon term loans 106,000 Stock 46,000 Current Liabilities 74,000 Debtors 44,000 Less: Provision 4,000 40,000 Cash 10,000 304,000 304,000 Sales $400,000 ; Gross Profit 20%
  7. 7. Question # 6From the following information calculate for both the companies: •Gross Profit Ratio •Working Capital Ratio •Stock Turnover Ratio •Liquid Ratio X Ltd. Y Ltd. Sales 2,520,000 2,140,000 Cost of Sales 1,920,000 1,635,000 Opening Stock 300,000 275,000 Closing Stock 500,000 350,000 Other Current Assets 760,000 640,000 Fixed Assets 1,440,000 1,600,000 Net Worth 1,500,000 1,400,000 Debts (long term) 900,000 950,000 Current Liabilities 600,000 665,000
  8. 8. Question # 7Balance Sheet of A Ltd. is given below: Net Sales for the year is $ 5,760,000 Compute: •Net Profit Ratio •Current Ratio •Fixed Asset turnover ratio •Debt-equity ratio •Stock turnover ratio •Debtors turnover ratio Liabilities $ Assets $ Share Capital 800,000 Building 1,200,000 15% Debentures 400,000 Machinery 240,000 P& L a/c (current year) 600,000 Debtors 1,300,000 General Reserves 600,000 Stock 700,000 Current Liabilities 1,160,000 Bank 120,000 3,560,000 3,560,000
  9. 9. Question # 8The balance sheet of Star Ltd. as at 31st December, 2010 is given below:Liabilities:Equity Share Capital $ 300,000Reserves 90,000Creditors 60,000 450,000Assets:Plant & Machinery $ 225,000Furniture 25,000Stock 90,000Debtors 60,000Cash in hand 20,000Cash at bank 30,000 450,000
  10. 10. The other details are as follows: •Total sales during the year have been $500,000 out of which cash sales amounted to $100,000. •The gross profit has been earned @ 20%. •Opening balances:Debtors $ 40,000 ; Stock $ 70,000 ; Creditors $ 15,000 •Cash paid to creditors during the year $ 105,000. You are required to calculate the following ratios: •Current Ratio •Acid Test Ratio •Debtors Turnover Ratio •Creditors Turnover Ratio •Stock Turnover Ratio

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