1. From the following data, work out the Profitability & Liquidity Ratios

Profit before tax ₹ 30,000

Interest ₹ 2,000

Share Capital, 10,000 Equity Shares of ₹ 10 each

₹1,00, 000

Reserves. ₹ 50,000

Loans ₹ 2,00,000

Tax. @ 30%

Other Income ₹ 3,000

Market Price of shares ₹ 30

Stock ₹ 40, 000

Debtors ₹ 50, 000

Cash & Bank Balances ₹ 10,000

2. From the following data compute the Economic Value Added.

Profit Before Tax 70,000

Other Income 10,000

Tax@ 40%

Total Capital employed ₹6,00,000

Shareholders’ Funds distributed 1:1 between Share Capital ( cost 18% & Reserves ( cost @ 20%)

Debt- Equity Ratio 2:1

Interest on secured term loan @

12%

Interest on Debentures @ 14%

( Ratio 1:1 between Term Loan & Debentures)