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Solutions:

Given,
Issued Rs. 10,000 Equity Share @10 Fully Paid
Capital;
Equity Capital

Rs. 1,00,000

Retained Capital =

Rs. 50,000

Rs. 1,50,000
..(1)

Therefore,
Debate equity ratio : 0.7
Quick ratio: 1.3
Asset turnover ratio: 1.8
Average collection period: 60 days
Gross profit margin: 30%
Inventory turnover ratio: 8

According to Question;
A. Debt Equity ratio = (total outside liabilities)/(shareholder
equity)
0.7 =

Total outside liabilities


1,50,000

= 40,163 (approx)
E.

Average collection period = (average debtors) / (sale /Days)


60 days
=
Debtors
(4,59,000)/(360)
60 days

Debtors
Rs. 1,275

Debtors = Rs. 76,500


F. Quick Ratio

Current asset stock stock

Current liabilities
1.3

= Current Asset Rs. 40, 163


Rs. 1, 05,000
Current Asset = Rs 1,05,000 x 1.3 + Rs 40,163
= Rs 1,36,500 + Rs 40,163
= Rs 1,76,663

G.

Fixed Asset =

Total Asset Current Asset

= Rs 2,55,000 Rs 1,76,663
= Rs 78,337
Cash and Bank Balance + Current Asset Average
Inventory Debtors
= Rs 1, 76,663 Rs 40,163 Rs 76,500
= Rs 60,000

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