19

- Preliminary Expenses 60,000 + 40,000 2,30,000 1,00,000 = 0.43:1 2,30,000 Stock 4) Stock Working Capital Ratio = x 100 Working Capital CST -X100 WC 70,000 x 100 90,000 = 77.78% Q.4 X Ltd. and Y Ltd. are in the same line of business. Following are their Balance Sheets as on 31st December 2003. Balance Sheet as on 31st December, 2003 Liabilities X Ltd. Y Ltd. Assets X Ltd. Y Ltd. (Rs.) (Rs.) (Rs.) (Rs.) Equity Share Capital 7,00,000 2,00,000 Land 1,00,000 80,000 Reserve & Surplus 1,00,000 1,00,000 Building 2,50,000 2,00,000 12% Debentures 2,00,000 $,00,000 Plant & Machinery 5,00,000 3,00,000 Creditors 1,20,000 70,000 Debtors 2,10,000 1,10,000 Bills Payable 40,000 20,000 Stock 1,00,000 2,00,000 Proposed Dividend 20.000 20.000 Cash & Bank 55,0000 40,000 Provision for Tax 35,000 20,000 12,15,000 30,000 12,15,000 9,30,000 You are required to rearrange the Balance Sheets (in Vertical form) and calculate the following ratios for both the companies (any three) a) Proprietory Ratio b) Capital - Gearing Ratio c) Current Ratio d) Stock Working Capital Ratio (Mar 2003, adapted)