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    Question Ratio 2

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    Shubham Indoria
    This document provides financial information for a company for the year ending March 31, 2016 including a statement of profit and loss and balance sheet. It also provides additional context through notes on various line items, ratios from the previous year, and opening balances from March 31, 2015. Specifically, the statement of profit and loss shows revenues, expenses, earnings before/after taxes. The balance sheet outlines assets like inventory and cash as well as liabilities including loans and equity.

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    Question Ratio 2

    Uploaded by

    Shubham Indoria
    13 views3 pages
    This document provides financial information for a company for the year ending March 31, 2016 including a statement of profit and loss and balance sheet. It also provides additional context through notes on various line items, ratios from the previous year, and opening balances from March 31, 2015. Specifically, the statement of profit and loss shows revenues, expenses, earnings before/after taxes. The balance sheet outlines assets like inventory and cash as well as liabilities including loans and equity.

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    More questions on financial ratios

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    This document provides financial information for a company for the year ending March 31, 2016 including a statement of profit and loss and balance sheet. It also provides additional context through notes on various line items, ratios from the previous year, and opening balances from March 31, 2015. Specifically, the statement of profit and loss shows revenues, expenses, earnings before/after taxes. The balance sheet outlines assets like inventory and cash as well as liabilities including loans and equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views3 pages

    Question Ratio 2

    Uploaded by

    Shubham Indoria
    This document provides financial information for a company for the year ending March 31, 2016 including a statement of profit and loss and balance sheet. It also provides additional context through notes on various line items, ratios from the previous year, and opening balances from March 31, 2015. Specifically, the statement of profit and loss shows revenues, expenses, earnings before/after taxes. The balance sheet outlines assets like inventory and cash as well as liabilities including loans and equity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 3

    Question

    2
    Statement of Profit and Loss for the year ended 31st March 2016
    Sales
    less:Sales returns
    Net Sales
    less: Cost of goods sold
    Gross Profit
    less: office and administration expenses
    less: selling and distribution expenses
    less: Depreciation
    Earnings before Interest and taxes
    less: Interest expense
    Earnings before taxes
    less: Taxes
    Earnings after taxes

    240000

    Balance Sheet as at 31st March 2016


    Liabilities
    Equity Share capital
    General reserve
    Profit and loss account
    12% Debentures
    15% Loan
    Current liabilities
    Accounts Payable
    Proposed dividend
    Accrued expenses
    Accrued Interest

    1000000
    0

    Total
    Assets
    Fixed Assets (Net)
    Current Assets
    Accounts Receivables
    Inventory
    Cash in hand
    Cash at bank

    30000

    Total
    1 Proposed dividend: 5% of equity share capital
    2 Company announced a 1:1 stock dividend during the year

    3
    4
    5
    6
    7
    8
    9
    10
    11
    12
    13
    14
    15
    16
    17

    15% Loan was paid off on 30th Nov 2015


    12% Debentures were issued on 1st December 2016. Interest was payable half yearly
    Taxes @33 1/3 %
    Selling and Distribution expenses are 10% of credit sales
    Interest Coverage ratio: 6
    Sales returns are 1/9th of the Total Sales
    Gross Profit Ratio 60%
    Credit sales are 75% of the Total Sales
    2 months of selling and distribution expenses are accrued
    Average payables period: 73 days
    Closing inventory is 33 1/3 % more than the opening inventory
    Receivables turnover is 2
    100% of the purchases are credit purchases
    Purchases during the year: Rs. 800000
    Ratios as on 31st March 2015
    Debt equity ratio
    0.5:1
    Current Ratio
    6.55555556
    18 15% loan was the only interest bearing loan on 31st March 2015
    19 Opening balances(as at 31st March 2015)
    Balance Sheet as at 31st March 2015
    Liabilities
    Equity Share capital
    General reserve
    Profit and loss account
    12% Debentures
    15% Loan
    Current liabilities
    Accounts Payable
    Proposed dividend
    Accrued expenses

    500000
    1000000
    500000
    0

    180000
    0
    0
    Total

    Assets
    Fixed Assets (Net)
    Current Assets
    Accounts Receivables
    Inventory
    Cash in hand
    Cash at bank

    470000
    20000

    Prepare a Cash flow statement to find out the ending Cash balances
    Compute the following ratios

    Return on Equity
    Return on Capital employed
    Debt Equity ratio
    Current Ratio
    Acid Test ratio
    Inventory turnover ratio

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