Answered step by step
Verified Expert Solution
Question
1 Approved Answer
12. The Balance sheet of Alpha Numeric Company is given below:LiabilitiesRsAssetsRsEquity capital (Rs90,000Net Fixed Assets2,25,00010 per share)10% Long-term debt1,20,000Current asset75,000Retained earnings30,000Current Liabilities60,0003,00,0003,00,000The company's total assets
12. The Balance sheet of Alpha Numeric Company is given below:LiabilitiesRsAssetsRsEquity capital (Rs90,000Net Fixed Assets2,25,00010 per share)10% Long-term debt1,20,000Current asset75,000Retained earnings30,000Current Liabilities60,0003,00,0003,00,000The company's total assets turnover ratio is 3, its fixed operating cost is Rs 1,50,000 andits variable operating cost ratio is 50%. The income tax rate is 50%You are required to:a) Calculate the different types of leverages for the companyb) Determine the likely level of EBIT if EPS is Rs 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started