Taking into consideration extract of Profit and Loss Account and Balance Sheet of Reliable India Ltd....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Taking into consideration extract of Profit and Loss Account and Balance Sheet of Reliable India Ltd. calculate Liquidity, Profitability and Solvency Ratios. Also, as a consultant guide your client whether he should purchase shares of this company or not. And secondly as a bank whether additional loan should be given to this company or not. Give proper reasons to justify your answer. Trading and Profit & Loss Account of Reliable India Ltd. for the year ended 31 March, 2021 Particulars Amount in Particulars By Sales By Closing Stock Opening To Stock To Purchases To Wages To Gross Profit Total To Salaries To Electricity To Misc. Expenses To Depreciation To Net Profit Rs 90,000 5,60,000 2,14,000 1,26,000 9,90,000 16,000 10,000 10,000 30,000 60,000 1,26,000 Total By Gross Profit Liabilities in Rs. Assets Equity Share 1,80,000 Capital Fixed Assets less Depreciation (5.40,000-1.50,000) 1,26,000 Balance Sheet of Reliable India Ltd.as on 31 March, 2021 Reserves and 1,20,000 Stock Surplus Secured 2,10,000 Debtors Loans Creditors 90,000 Cash 600,000 Amount in Rs. 9,00,000 90,000 9,90,000 1,26,000 in Rs. 3,90,000 90,000 1,05,000 15,000 600,000 Taking into consideration extract of Profit and Loss Account and Balance Sheet of Reliable India Ltd. calculate Liquidity, Profitability and Solvency Ratios. Also, as a consultant guide your client whether he should purchase shares of this company or not. And secondly as a bank whether additional loan should be given to this company or not. Give proper reasons to justify your answer. Trading and Profit & Loss Account of Reliable India Ltd. for the year ended 31 March, 2021 Particulars Amount in Particulars By Sales By Closing Stock Opening To Stock To Purchases To Wages To Gross Profit Total To Salaries To Electricity To Misc. Expenses To Depreciation To Net Profit Rs 90,000 5,60,000 2,14,000 1,26,000 9,90,000 16,000 10,000 10,000 30,000 60,000 1,26,000 Total By Gross Profit Liabilities in Rs. Assets Equity Share 1,80,000 Capital Fixed Assets less Depreciation (5.40,000-1.50,000) 1,26,000 Balance Sheet of Reliable India Ltd.as on 31 March, 2021 Reserves and 1,20,000 Stock Surplus Secured 2,10,000 Debtors Loans Creditors 90,000 Cash 600,000 Amount in Rs. 9,00,000 90,000 9,90,000 1,26,000 in Rs. 3,90,000 90,000 1,05,000 15,000 600,000
Expert Answer:
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073398242
11th edition
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
Posted Date:
Students also viewed these accounting questions
-
As she headed toward her boss's office, Emily Hamilton, chief operating officer for the Aerocomp Corporation-a computer services firm that specialized in airborne support-wished she could remember...
-
A 540-kg spacecraft is mounted on top of a rocket with a mass of 19 Mg, including 17.8 Mg of fuel. Knowing that the fuel is consumed at a rate of 225 kg/s and ejected with a relative velocity of 3600...
-
A beam of electron is directed toward a horizontal wire carrying a current from left to right (Fig. 20-49). In what direction is the mean deflected? Electron direction
-
Why does allocating an array of length \(n\) take time proportional to \(n\) ?
-
Refer to Exercise 16.5. a. Test the hypothesis that the relationships between risk index and number of cigarettes have equal slopes for the three treatments at the α = .05 level. b....
-
Why must a preliminary conceptual model be made during the Inception phase?
-
Record the following petty cash transactions of Xeno, Corp., in the journal; expla nations are not required. Jun 1 Established a petty cash fund with a $200 balance. 30 The petty cash fund had $22 in...
-
A chocolate maker has contracted to operate a small candy counter in a fashionable store. To start with, the selection of offerings will be intentionally limited. The counter will offer a regular mix...
-
1. Discuss who socially responsible investors are and how they use (T-bills), mutual funds, and hedge funds to diversify their portfolios. 2. Analyze the results of the T-bills listed and the net...
-
Example of Epic Proportions Twenty-five years ago Ronaldo, an accomplished cyclist, purchased a small custom carbon fiber wheel builder Zircles Inc. He applied their expertise in carbon fiber to...
-
Consider ()* (5 2x-7* 3*) Find the limit as x goes to infinity
-
AMP LTD is embroiled in a Scandal 'fees for no service' describe briefly and discuss how it will impact the company's current market position
-
What are the critical elements of clarity and precision in business writing, and how can writers avoid ambiguity? Discuss the impact of unclear communication on business operations .
-
Answer choices are the same for all parts of the question. Question 4 < > The cost C (in cents) to produce x pints of syrup can be expressed as C = f(x). In the expression f(150) = 325: What are the...
-
discuss Ada's role in facilitating risk-informed decision-making processes, including the use of quantitative risk assessment models and decision analysis techniques to prioritize risk mitigation...
-
The Engineering Department at Great Lakes Community College, a taxpayer funded institution, is considering a new Fabrication Lab (Fab Lab) on campus. The cost of designing the Fab Lab and the...
-
Which company has the higher receivables turnover ratio? Company A Company B Average Net Accounts Receivable $2,000 $5,000 Average Inventory $4,000 $20,000 Net Sales $40,000 $100,000 Multiple choice...
-
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
-
Two uniform rods, each of mass m and length l, are attached to drums that are connected by a belt as shown. Assuming that no slipping occurs between the belt and the drums, determine the positions of...
-
A small ball swings in a horizontal circle at the end of a cord of length l1, which forms an angle (1 with the vertical. The cord is then slowly drawn through the support at O until the length of the...
-
A cable is placed around three parallel pipes. Knowing that the coefficients of friction are μs = 0.25 and μk = 0.20, determine (a) The smallest weight W for which...
-
Ethical behavior requires an individual to a. Act only in accord with the law. b. Perceive the ethical implications of a situation only if it involves the possibility of unlawful conduct. c. Consider...
-
According to the profession's ethical standards, a CPA would be considered independent in which of the following instances? a. A client leases part of an office building from the CPA, resulting in a...
-
May a CPA hire for the CPA's public accounting firm a non-CPA systems analyst who specializes in developing computer systems? a. Yes, provided the CPA is qualified to perform each of the specialist's...
Study smarter with the SolutionInn App