From the financial statements below, you are required to compute the Liquidity, Profitability, Capital Structure (Solvency) and activity ratios.

  

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Sales (-) Cost of goods sold: Raw material consumed (50,000+ 3,00,000 -1,50,000) Wages Manufacturing expenses Cost of production (+) Opening stock of finished goods (-) Closing stock of finished goods Gross profit PKJ Ltd. Income Statement (-) Operating expenses: Administrative expenses Selling and distribution Operating profit (+) Non operating income (Profit on Sale of Shares) (-) Loss on sale of plant EBIT (-) Interest EBT / Net Profit Balance Sheet 2,00,000 2,00,000 1,00,000 5,00,000 1,00,000 (1,00,000) 50,000 50,000 (3) 1,000,000 (5,00,000) 5,00,000 (1,00,000) 4,00,000 50,000 (55,000) 3,95,000 (10,000) 3,85,000 Sales (-) Cost of goods sold: Raw material consumed (50,000+ 3,00,000 -1,50,000) Wages Manufacturing expenses Cost of production (+) Opening stock of finished goods (-) Closing stock of finished goods Gross profit PKJ Ltd. Income Statement (-) Operating expenses: Administrative expenses Selling and distribution Operating profit (+) Non operating income (Profit on Sale of Shares) (-) Loss on sale of plant EBIT (-) Interest EBT / Net Profit Balance Sheet 2,00,000 2,00,000 1,00,000 5,00,000 1,00,000 (1,00,000) 50,000 50,000 (3) 1,000,000 (5,00,000) 5,00,000 (1,00,000) 4,00,000 50,000 (55,000) 3,95,000 (10,000) 3,85,000

Answer rating: 100% (QA)

To compute the liquidity profitability capital structure solvency and activity ratios we will use the given financial statements Lets start with the l... View the full answer