Q1.

Rama Industries has furnished the following details:

Inventory Rs. 80,000,

Prepaid expenses Rs. 20,000,

Quick ratio 2.5 to 1

Current liabilities Rs. 50,000.

The current ratio is _________

a. 4.5
b. 4.10
c. 3.16
d. 5.20
e. 3.88

Q2.From the following information, the Inventory is __________.

Current ratio = 2.6:1

Liquid ratio = 1.5:1

Current liabilities = Rs. 40,000

a. Rs. 55,000
b. Rs. 44,000
c. Rs. 22,000
d. Rs. 1,64,000
e. Rs. 1,04,000

Q3. From the following information gross profit margin and net profit margin are _______.

Rs. Rs.
Sales 25,20,000 Fixed assets 14,40,000
Cost of sales 19,20,000 Net worth 15,00,000
Net profit 3,60,000 Debt 9,00,000
Inventory 8,00,000 Current liabilities 6,00,000
Other current assets 7,60,000

a. 23.81% and 14.29%

b. 25.56% and 18.90%
c. 20.34% and 12.45%
d. 22.75% and 20.01%
e. 19.06% and 15.33%
Q4. The following information is extracted from Kotari Ltd., financial statement:

Cost of goods sold Rs. 28,00,000

Sales Rs. 40,00,000

Average Debtors Rs. 3,60,000

Average Stock Rs. 20,00,000

Average assets Rs. 60,00,000

Net profit Rs. 10,40,000

Activity ratios such as debtors turnover, stock turnover and total assets turnover are
______, _________ and __________ respectively.

a. 12.0 times, 1.3 times, 0.67 times

b. 11.1 times, 1.4 times, 0.67 times
c. 11.1 times, 1.2 times, 0.63 times
d. 12.0 times, 1.3 times, 0.73 times
e. 12.5 times, 2.2 times, 0.12 times

Q5.The Aditya Textiles provides the following information:

Long-term debts Rs. 16,00,000

Equity funds Rs. 28,12,000

EBIT Rs. 12,00,000

Interest charge Rs. 1,60,000

Temporary investments Rs. 2,00,000

The debt equity ratio and interest coverage ratio are _______ and ________.

a. 0.57, 7.5 times

b. 0.42, 6.7 times
c. 0.67, 8.6 times
d. 0.33, 7.1 times
e. 0.71, 5.9 times
Q6.From the following information the market price of share of Mahati Film
distributors is _________.

Profit after tax = 1,50,000

Number of shares = 50,000

P/E ratio = 8

Current ratio = 1.5

a. Rs. 21
b. Rs. 20
c. Rs. 12
d. Rs. 24
e. Rs. 14

Q7. The capital of XYZ Ltd., is as follows:

9% preference shares of Rs. 10 each Rs. 3,00,000

Equity shares of Rs. 10 each Rs. 8,00,000

The following further information is available:

Profit after tax Rs. 2,70,000

Equity dividend paid 0%

Market price of equity shares Rs. 40 each.

From the above information, the EPS and PE ratio are ________and __________.

a. Rs. 4.77, 12.00

b. Rs. 3.12, 10.80
c. Rs. 3.33, 10.34
d. Rs. 4.51, 12.56
e. Rs. 3.04, 13.16

Q8. In du pont analysis if equity multiplier is 4 then the debt to asset ratio is
Ans= .75.

Q9.IF NET PROFIT MARGIN is 7.50%, asset turnover is .90 and debt to asset ratio is .75 then the
return on net worth is
Ans= .27

Q.10 . Gross total sales rs.600000

Cash sales Rs. 110000
Sales return Rs. 120000
Debtors at end Rs.186000
Bills receivables at end Rs.48000
Total creditors at end Rs.25000

Calculate average collection period 231 days