Question: PROBLEM 6 rom the data given below compute : (a) Working Capital, (b) Net Capital Employed, (c) Current Ratio, (d) Acid Test Ratio, (e) Debt

PROBLEM 6 rom the data given below compute : (a) Working Capital, (b) Net Capital Employed, (c) Current Ratio, (d) Acid Test Ratio, (e) Debt Equity Ratio, () Fixed Assets Ratio. A COMPANY LIMITED BALANCE SHEET as on 31-3-2010 Liabilities Assets Equity Share Capital 25,000 Fixed Assets 30,000 Preference Share Capital 5,000 Stores 2,000 Reserves and Surplus 4,000 Stock in Trade 4,000 Debentures 8,000 Sundry Debtors 1,000 Bank Loan 4,000 Cash in Hand 500 Sundry Creditors 1,000 Balance with Schedule Proposed Dividends 1,000 Bank 2,500 Provision for Taxation 2,000 10,000 Contingent Liabilities 2,000 Preliminary Expenses 8,000 Brokerage on Subscription of Shares 2,000 50,000 50,000 Comment on the financial health of the company
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
