The summarized balance sheet of C.B. Ltd. on March 31, 2022 is provided below: Liabilities Amount (Rs)
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Question:
The summarized balance sheet of C.B. Ltd. on March 31, 2022 is provided below:
Liabilities | Amount (Rs) | Assets | Amount (Rs) |
Equity capital | 2,00,000 | Fixed assets | 1,40,000 |
Reserves and surplus | 30,000 | Cash | 12,000 |
Sundry creditors | 70,000 | Debtors | 93,000 |
Inventories | 55,000 | ||
3,00,000 | 3,00,000 |
Other information:
Sales 2,60,000
(-) Cost of goods sold (1,80,000)
Gross profit 80,000
(-) Administration and other expenses (62,500)
Net profit 17,500
You are required to compute the following ratios:
1.Current ratio
2.Quick ratio
3.Inventory turnover ratio
4.Debtor’s turnover ratio
5.Net profit ratio
6.Sales to total asset ratio
Note: Proper calculations are required in all ratios, and you can make the necessary assumptions.
Expert Answer:
To compute the requested ratios well use the given data and formulas for each ratio Here are the cal... View the full answer
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