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Liquidity ratios = current ratio and quick ratio
Current ratio = Current assets / current liabilties = 34401/2875 = 11.97
Quick ratio = (Current assets - Inventories)/ current liabilties = (34401 -0)/2875 = 11.97 (Since
there are no inventories)
Solvency ratio = (After Tax Net Profit + Depreciation) / Total liabilities
Solvency Ratio = (10,217 + 0)/ 5,767 = 1.77
Profitability ratio = Net Profit = Net Income/ Sales =10217/27638 = 0.3697 = 36.97%
Solution
Liquidity ratios = current ratio and quick ratio
Current ratio = Current assets / current liabilties = 34401/2875 = 11.97
Quick ratio = (Current assets - Inventories)/ current liabilties = (34401 -0)/2875 = 11.97 (Since
there are no inventories)
Solvency ratio = (After Tax Net Profit + Depreciation) / Total liabilities
Solvency Ratio = (10,217 + 0)/ 5,767 = 1.77
Profitability ratio = Net Profit = Net Income/ Sales =10217/27638 = 0.3697 = 36.97%

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Liquidity ratios = current ratio and quick ratioCurrent ratio = Cu.pdf

  • 1. Liquidity ratios = current ratio and quick ratio Current ratio = Current assets / current liabilties = 34401/2875 = 11.97 Quick ratio = (Current assets - Inventories)/ current liabilties = (34401 -0)/2875 = 11.97 (Since there are no inventories) Solvency ratio = (After Tax Net Profit + Depreciation) / Total liabilities Solvency Ratio = (10,217 + 0)/ 5,767 = 1.77 Profitability ratio = Net Profit = Net Income/ Sales =10217/27638 = 0.3697 = 36.97% Solution Liquidity ratios = current ratio and quick ratio Current ratio = Current assets / current liabilties = 34401/2875 = 11.97 Quick ratio = (Current assets - Inventories)/ current liabilties = (34401 -0)/2875 = 11.97 (Since there are no inventories) Solvency ratio = (After Tax Net Profit + Depreciation) / Total liabilities Solvency Ratio = (10,217 + 0)/ 5,767 = 1.77 Profitability ratio = Net Profit = Net Income/ Sales =10217/27638 = 0.3697 = 36.97%