Following balance sheet of July Ltd as on 31 st December 2001. Balance Sheet as on...

 

    

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Following balance sheet of July Ltd as on 31 st December 2001. Balance Sheet as on 31.12.2001 Liabilities Rs. Assets Rs. Current Liabilities: Current Assets Creditors 6500 Cash 7000 Bills Payable 10000 10% Investments 15500 Outstanding Expenses 1000 Sundry Debtors 22000 Provision for Tax 13000 Closing Stock 32500 30500 77000 6% Debentures 71000 Fixed Assets 7% Preference Shares 11000 Equity Share Capital(5300) shares @Rs. 53000 Machinery 110000 59000 10) (-) Depre: 51000 81000 Reserves & Surplus 51500 Land & Buildings Total 217000 217000 Other Information: a) Net sales b) Cost of goods sold Rs. 350000 260000 c) Net income before tax( after interest) d) Net income after interest interest & tax 21000 11500 e) Market price of equity share( per share) Calculate a) Current ratio b) Acid test ratio c) Fixed asset to net worth ratio d) Net profit ratio e) Return on total assets f) Stock turnover ratio g) Average debt collection period h) Capital gearing ratio i) Return on equity share capital j) Price earning ration k) Proprietary ratio I) Gross profit ratio m) Operating ratio n) Return on capital employed o) Debtors turnover ratio p) Fixed assets turnover ratio q) Return on shareholders fund r) E.P.S s) Debt service ratio 25 Following balance sheet of July Ltd as on 31 st December 2001. Balance Sheet as on 31.12.2001 Liabilities Rs. Assets Rs. Current Liabilities: Current Assets Creditors 6500 Cash 7000 Bills Payable 10000 10% Investments 15500 Outstanding Expenses 1000 Sundry Debtors 22000 Provision for Tax 13000 Closing Stock 32500 30500 77000 6% Debentures 71000 Fixed Assets 7% Preference Shares 11000 Equity Share Capital(5300) shares @Rs. 53000 Machinery 110000 59000 10) (-) Depre: 51000 81000 Reserves & Surplus 51500 Land & Buildings Total 217000 217000 Other Information: a) Net sales b) Cost of goods sold Rs. 350000 260000 c) Net income before tax( after interest) d) Net income after interest interest & tax 21000 11500 e) Market price of equity share( per share) Calculate a) Current ratio b) Acid test ratio c) Fixed asset to net worth ratio d) Net profit ratio e) Return on total assets f) Stock turnover ratio g) Average debt collection period h) Capital gearing ratio i) Return on equity share capital j) Price earning ration k) Proprietary ratio I) Gross profit ratio m) Operating ratio n) Return on capital employed o) Debtors turnover ratio p) Fixed assets turnover ratio q) Return on shareholders fund r) E.P.S s) Debt service ratio 25

Answer rating: 100% (QA)

Lets calculate each of the financial ratios step by step a Current ratio Current Ratio Current Assets Current Liabilities Current Assets Cash Sundry Debtors Closing Stock 7000 22000 32500 61500 Curren... View the full answer