1:

Liabilities	$	Assets	$
Equity Share Capital 12% Preference share capital General Reserve 16% debentures Trade payable Bank Overdraft Provision for Income Tax	2,00,000 3,60,000 1,40,000 2,40,000 2,44,000 40,000 36,000	Machinery Investment Stock Bills Receivable S. Debtors Cash and Bank Profit & Loss A/c	5,92,000 2,24,000 2,02,000 40,000 98,000 76,000 28,000
	12,60,000		12,60,000

Calculate the Following Ratios from the above balance sheet:

1. Current Ratio

2. Liquid Ratio

3. Proprietary Ratio

4. Capital Gearing Ratio

5. Debt Equity Ratio

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-

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2: Following are the data of Kingston &Co.

Ratio	2020	2019	2018	2020- Industry Average
Long-term debt	0.45	0.40	0.35	0.35
Inventory Turnover	62.65	42.42	32.25	53.25
Depreciation/Total Assets	0.25	0.014	0.018	0.015
Days’ sales in receivables	113	98	94	130.25
Debt to Equity	0.75	0.85	0.90	0.88
Profit Margin	0.082	0.07	0.06	0.075
Total Asset Turnover	0.54	0.65	0.70	0.40
Quick Ratio	1.028	1.03	1.029	1.031
Current Ratio	1.33	1.21	1.15	1.25
Times Interest Earned	0.9	4.375	4.45	4.65

Compare the performance of Kingston & Co. over time using financial ratios.

Answer rating: 100% (QA)

SOLUTION To compare the performance of Kingston Co over time using financial ratios lets analyze the ratios provided for the years 2018 2019 and 2020 1 Longterm Debt Ratio 2020 045 2019 040 2018 035 I... View the full answer